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Overview
The Affordable Housing Program (AHP) was designed to help member institutions
develop affordable owner-occupied and rental
housing for very low- to moderate-income families and individuals.
The program provides direct grants and subsidized loans to assist our
members in meeting their community's affordable housing needs. Members
partner with local housing organizations (project sponsors) to develop
AHP projects.
Because the funds are intended for gap financing, the innovative use
of
other funds to leverage AHP subsidies is highly recommended. Since
1990, the Affordable Housing Program has committed over $164 million
in
grants to help provide housing for 31,955 families. All member
institutions (savings and loans, banks, credit unions, and insurance
companies) located in Arkansas, Louisiana, Mississippi, New Mexico,
and
Texas may access these funds for their own programs or for programs
initiated in conjunction with nonprofit organizations, state or local
governments or for-profit developers, subject to the terms and
conditions of the AHP.
Use of AHP Funds
AHP funds are intended to assist members in financing the purchase,
construction, and/or rehabilitation of single-family, rental, transitional,
and single-room housing in their community. Funds must be used
to benefit households with incomes at or below 80 percent of the median
income for the area.
AHP funds may also be used to:
- pay closing costs or down payments
- buy down principal amounts or interest rates
- refinance an existing loan (provided that the equity proceeds are used for the development of AHP-eligible housing)
- assist with rehabilitation or construction costs
Underwriting
Lenders may use their standard underwriting criteria. Loans made using
AHP grant assistance should meet prudent, flexible, and innovative underwriting
standards that do not expose the institution to undue risk.
Advantages of the Affordable Housing Program
- Finance Critical Housing
Affordable housing is in great demand. Many individuals and families with good credit ratings are not able to accumulate the funds necessary to pay the down payment and closing costs associated with the purchase of a new home. Through the AHP, these families can receive both, thus enabling them to become homeowners and ultimately new customers of the member institution.
- Rehabilitate Existing Housing
Many homeowners, particularly those who are elderly and living on a fixed income, find themselves unable to afford the repair and maintenance of their home. Through the AHP, grant funds may be obtained to pay all or part of their rehabilitation costs.
- Expand Affordable Rental Housing
- Satisfy CRA Requirements
Interest rate subsidies or principal reductions obtained through the AHP can substantially reduce the member's credit risk and increase their ability to initiate rental programs that otherwise would not meet cash flow projections and other underwriting criteria.
Participation in the AHP can assist in satisfying CRA requirements and responsibilities.
Please note the AHP application is only open for entry during the periods February 1 - March 15 and August 1 - September 15 of each year. (If either the starting or ending date(s) fall on weekend or holiday, the AHP application period will start or end on the following business day.)
Our online AHP application makes it easier for members and community sponsors to meet the affordable housing needs in the communities they serve. Simply log on to complete, submit, and track the status of your application from the convenience of your desktop.
Note: The online application requires that your browser be Internet Explorer 5.5 or higher OR Netscape 7.0 or higher to access the website.If you have any questions contact the Community Investment Department at 800-362-2944.
The Community Investment Department of the Federal Home Loan Bank of Dallas is available to provide technical assistance and information to member institutions, nonprofit organizations, local governments, for-profit developers, and community groups who are interested in participating in the Affordable Housing Program. There is no charge for this service.
The Sponsor, Member Institution and the Community Investment Department of the Federal Home Loan Bank can view the on-line application simultaneously. Therefore, technical assistance is available anytime prior to submission.
Competitive Process
The AHP operates through a district-wide competition. A 100 point scoring system is used to evaluate applications. Those achieving the highest scores will receive first priority for funding.
Applications are evaluated according to the criteria detailed in the scoring guidelines of the 2008 Implementation Plan:
RankingApplications will be ranked according to a 100 point scoring system using the following point distribution:
*Approved applications will be required to show evidence of long-term retention: 5 years for owner-occupied projects and 15 years for rental projects.25 Points - Income Groups Targeted
25 Points - First District Priority
15 Points - AHP Subsidy Per Unit
10 Points - Second District Priority
5 Points - Community Stability
5 Points - Empowerment
5 Points - Not-for-profit Sponsorship
5 Points - Donated Property
5 Points - Homeless Housing
100 Points
The 2008 Affordable Housing Program Implementation Plan can be viewed and printed using Adobe Acrobat Reader (if you do not have Acrobat Reader, you may download a free copy).
Reporting
- Project sponsors will be required to file semi-annual reports with their member institution until all program obligations have been met.
- Member institution and project sponsor will be required to submit a certification report when the project is completed.
Monitoring
In addition to the required reports and certifications, each institution
and sponsor receiving AHP advances or subsidies will be monitored to
ensure full compliance with program objectives.
Contact Person
Each member and project sponsor must appoint an officer to act as program
coordinator. This person will be the primary contact with the
Bank.
Recapture
If AHP grant funds are no longer being used for the purpose approved
by the Bank, the amount of committed but unused funds will be recovered
by the Bank. If funds are determined to have been improperly used, funds
will be recovered by the Bank.
The following funding manuals can be viewed and printed using Adobe Acrobat Reader (if you do not have Acrobat Reader, you may download a free copy).
Portions of the Owner-Occupied, Habitat, and Rental Funding Manuals have been modified to allow input of pertinent information directly onto the forms. In addition, there are hyperlinks on the Request For Disbursement of Funds which will take you to the specific document(s) where applicable.
If you are a Habitat, please use the formulated Needs Analysis Excel spreadsheet provided below. If you are using the Rental Funding Manual, please also use the formulated Proforma Excel spreadsheet provided below.
Please Note: As of January 2008, we have made changes to the Deed Restriction, Comparison of Market Terms, and Sources and Uses in all three Funding Manuals. In addition, we added a list of Key Participants form in the Rental Funding Manual. Please utilize these new forms.
To view the 2008 Median Incomes.
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Grants
The Bank awarded $9.1 million in grants to 30 affordable housing projects. The grants will help create 1,743 new or rehabilitated housing units.
Details about the 2008 Round-A grant applications:
- Arkansas, $209,500 for 35 units
- Louisiana, $2,354,000 for 318 units
- Mississippi, $277,500 for 30 units
- Tennessee, $6,969 for 1 unit
- Texas, $6,265,908 for 1,359 units
For more information on participating in the AHP, please contact the
Community Investment Department at 1.800.362.2944, or send e-mail to
ahp@fhlb.com.
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