Affordable Housing Program

• AHP Documentation | AHP Projects | AHP Profiles

The 2010 AHP First Round online application is now available (see link at right).

Changes to the 2010 AHP
Funding will be $22.4 million, compared to $4.7 million in 2009. There will be two application rounds, March 1 and September 1.

AHP competitive program homeownership projects rates and terms guidelines have been expanded for 2010:

• The difference between the maximum allowable mortgage rate has been increased from 150 basis points to 200 basis points, above the posted Freddie Mac rate.
• Maximum allowable loan discount points have been increased from 1.5 to 2.0 points.
• Maximum lender fees have been increased from 2.5 % to 3.0%. However, the maximum lender fees applies to fees paid by the buyer and seller combined.
• The maximum allowable front ratio is 38%.

The definition of “homeless” has been updated to agree to the most recent HUD definition.

Scoring priorities have been modified:

• District Priority 1 is now 20 points rather than 32.5 points and retains the special needs, member financial participation, rural and first-time homebuyer factors. The community involvement and urban infill/rehab factors have been moved to District Priority 2 and have been modified.
• District Priority 2 is now 17.5 points rather than 5 points. District Priority 2 now includes the following components: community involvement, federal program financing, support services and priorities for farm worker, workforce housing, rural employment related housing needs, large units, infill in urban or rural areas, and green building.

Some of the guidelines used to evaluate feasibility and need for subsidy have been modified: 

• The standard for capitalized operating and debt service reserves has been increased to 12 months from 8 months. 
• Projects involving rehabilitation must now provide a detailed description of the work to be performed as well as the costs of the rehabilitation. 
• The interest rate guideline has been increased from 250 basis points over the FHLBank Topeka CHP rate to 300 basis points. 
• The maximum management fee is increased to 15% from 10% of rent revenue. 
• The acceptable debt coverage ratio is now 1.00 to 1.50 but will be evaluated for the entire 15-year term of the pro forma.
• For projects with no debt, the cash flow ratio has been modified from a ration of .90 operating/reserves to effective gross income to .85.

Project Eligibility
AHP applications must satisfy the following threshold requirements:

1. At least 20% of the rental units must be occupied by tenants at or below 50% of the area median income (AMI). All owner units must be occupied by households below 80% AMI;
2. Reasonable and customary project costs, sources of funds and pro forma projections of operating costs documenting the need for the amount of the AHP subsidy requested must be consistent with AHP standards;
3. Applicants must have the ability to draw AHP funds or to secure other funding within 12 months of approval;
4. Applicants must make a commitment not to use an AHP subsidy for FHLBank advance prepayments, cancellations or processing fees;
5. AHP funds may be used to pay for homeownership counseling fees, but only on AHP-assisted units;
6. AHP funds can only be used for refinancing if  the refinancing proceeds are used to provide additional AHP-eligible housing;
7. Long-term retention is restricted to 15 years for rental units and five years for owner-occupied housing targeted to low-income households;
8. All applicants must provide an affirmative fair housing marketing plan and comply with fair housing laws;
9. The AHP request must be $450,000 or less for each project;
10. Project sponsors, nonprofit and for-profit developers must be qualified and able to perform the responsibilities described in the AHP application.

AHP Funding Criteria
Eligible applications for AHP funds are reviewed by FHLBank staff using a competitive process based on how well each application meets the following criteria:

1. Targets households with incomes below the statutory maximum;
2. Proposes to use the least amount of AHP subsidy per unit requested;
3. Creates transitional housing for the homeless, excluding overnight shelters, with a minimum six-month occupancy, or creates rental housing with at least 20% of the units reserved for homeless households;
4. Creates housing using a significant proportion of units or land donated or conveyed at a reduced cost from market value;
5. Finances the purchase, construction and/or rehabilitation of housing sponsored by a nonprofit organization, any state or political subdivision of any state, or any local housing authority or state agency;
6. Provides housing in combination with a program offering employment; education; training; homebuyer, homeownership or tenant counseling; day care services; resident involvement in decision-making affecting the creation or operation of the project; welfare-to-work initiatives; or other services that enable residents to move toward better economic opportunities;
7. Promotes community stability by rehabilitating deteriorated, vacant or abandoned properties, being an integral part of a neighborhood stabilization plan approved by a state or local government unit and minimizing displacement of low- and moderate-income households; and
8. Finances projects that address the two district priorities established yearly by FHLBank’s Affordable Housing Advisory Council and board of directors, which are:
   
   • Priority #1: Special needs housing, first-time homebuyers, rural location and financial participation by the member applicant; and
   • Priority #2: One of the following financial support categories, such as CDBG, HOME and USDA; support services including health, youth education programs and transportation; addresses employment related housing needs; three-bedroom or larger housing units; community involvement, infill (rural/urban) and green building.

Board of Directors Approval
After FHLBank staff has evaluated applications pursuant to the rating system described in this section, FHLBank will forward to its board of directors for final funding consideration the applications from projects receiving the highest overall ratings. To ensure an adequate pool of projects for consideration, FHLBank staff will forward to the board the highest ranking projects sufficient to exhaust the funds available under the AHP plus the next four highest ranking projects. 

Membership Requirement
FHLBank will only disburse AHP funds to FHLBank members at the time the funds are requested and approved for transfer.

Retention and Compliance Agreements
Rental and owner projects are subject to deed restrictions or other legally enforceable retention agreements or mechanisms guaranteeing that:

1. The project will remain affordable and income restricted for the length of the retention period.
2. FHLBank will be notified of the sale or refinancing of the project before the retention period ends.
3. A pro rata share of the subsidy provided for homeowner projects, or the full amount of subsidy for rental projects, will be returned to FHLBank at sale or refinancing, unless sold to a low- and moderate-income household in the case of owner projects or, in the case of rental projects, the project continues to be subject to a retention document with the same requirements as the AHP application.
4. The income eligibility and affordability restrictions applicable to the project terminate after any foreclosure.

Required Documents
AHP applications and forms must be submitted to FHLBank’s Housing and Community Development department for confirmation of eligibility. To obtain the required AHP documents, click on the links in the right column. AHP applications must be submitted using FHLBank's online application system.

Questions? Housing and Community Development Department, ph: 866.571.8155, e-mail HCDAHP@fhlbtopeka.com.

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AHP Documentation

The AHP documents are either available as Word forms, Excel spreadsheets or Acrobat PDFs and can be downloaded from the right side bar.

Follow the steps below to complete Word forms.

1. Save the document to your hard drive.
2. Using the Tab key, navigate through the form fields completing the information as necessary.
3. If a signature is required, print document. Sign where indicated.
4. Mail or send document by courier to Housing and Community Development department. Note: AHP applications must be submitted using FHLBank's online application system. Only signature pages, exhibits and supporting documentation may be submitted by mail or courier.

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AHP Projects

• 2008: Round Two | Round One
• 2007: Round Two | Round One
• 2006: Round Two | Round One 
• 2005: Round Two | Round One
• 2004: Round Two | Round One
• 2003: Round Two | Round One
• 2002: Round Two | Round One
• 2001: Round Two | Round One

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AHP Profiles

Colorado The Renaissance at Loretto Heights Arapahoe County, Colorado First Federal Savings Bank of Colorado, Lakewood, provided $250,000 in AHP funds to the Colorado Coalition for the Homeless to help develop this housing complex for households at or below 50 percent of the area’s median income. The development consists of 90 units with a mix of one, two, three and four bedrooms. Nearly half the units are targeted to homeless families and individuals with incomes at or below 25 percent of the area median income. Other sources of funding included a first mortgage loan from the Colorado Housing and Finance Authority, the HUD Supportive Housing Program and the HUD Homeless Initiatives Program.

Kansas Stillwell Hotel Apartments Pittsburg, Kansas Renovation on this historical structure began in 1995 after the Stillwell Heritage and Educational Foundation partnered with Bank of America (formerly Bank IV, Wichita) and other local entities to turn the hotel into apartments for low- and very low-income households at a cost of $3.3 million. A $100,000 AHP subsidy aided in the renovation, which resulted in 44 one- and two-bedroom units.

Nebraska Orchard Manor Apartments Omaha, Nebraska Packers Nebraska Bank and Trust Co. used an $80,000 AHP subsidy to provide a portion of the financing for the construction of Orchard Manor Apartments for the hearing impaired. Each of the 48 one-bedroom units was wired for visual communication devices. Other sources of funding included HUD HOME funds, proceeds from the sale of low-income housing tax credits and a first mortgage loan from Packers.

Oklahoma Pioneer Village  Jenks, Oklahoma Community Partnership Award Winner for the Federal Home Loan Bank System The development of Pioneer Village, 40 units of newly constructed rental housing for the elderly, is a partnership combining the experience and financial strength of the developer, RESCO Enterprises, with the expertise of nonprofit Vintage Housing in providing services to the elderly in the Tulsa area. FHLBank Topeka member Bank of Oklahoma, NA, provided a conventional mortgage loan for a portion of the financing, and AHP funds were used to complete the financing. The project provides congregate meals and nutrition services to the surrounding community as well as to project residents. There are special emergency systems in all units, a medical exam room for visiting health services, a commons area, laundry facilities and other amenities. Transportation and other community services are available to project residents.

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