Sustainable Communities Fund. Competitive Affordable Housing Program

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1 Sustainable Communities Fund Competitive Affordable Housing Program

2 Contact Persons Rick Bloxham Homeownership Manager , ext Brandon Wiltgen Rental Analyst , ext

3 What are the FHLBanks? Authorized by Congress in 1932, the Federal Home Loan Bank System is a government sponsored enterprise comprised of 12 regional, independent Banks. Over 8,000 commercial banks, thrifts, insurance companies and credit unions are cooperative members of the Home Loan Banks. The mission of the Banks is to provide liquidity and stability to the nation s financial system, and promote housing and economic development in communities. Member financial institutions borrow funds from the Banks to finance housing, economic development, infrastructure and jobs. As part of the mission, the Banks reserve 10% of net income each year for the Affordable Housing Program, making the Banks one of the nations largest private funders of affordable housing. 3

4 FHLB Des Moines district Missouri, Iowa, Minnesota, North Dakota, South Dakota 4

5 Competitive Affordable Housing Program (AHP) Competitive subsidy award program Funds available for the purchase, construction or rehabilitation of affordable housing units Funds available for rental and homeownership projects Maximum subsidy award $500,000 for a project, and maximum subsidy of $30,000 per unit in a project 5

6 AHP Projects Funded Total Competitive AHP Subsidy Awards State AHP Award Amount Projects Development Costs Units of Housing Minnesota $65,101, $1,068,946,010 12,968 Missouri $49,886, $392,189,913 10,433 Iowa $37,945, $392,738,626 9,155 South Dakota $24,619, $180,177,412 4,208 North Dakota $10,477, $107,984,338 1,739 Out of District $9,367, $202,977,969 2,171 Total $197,397,371 1,154 $2,345,014,268 40,674

7 Affordable Housing Program Requirements Households must be at or below 80% of Area Median Income (AMI) In rental projects, at least 20% of households must be at or below 50% of area median income Affordability must be maintained Retention period / deed restriction Homeownership = 5 years Rental = 15 years 7

8 AHP Project Types Rental New construction Acquisition/rehabilitation Rehabilitation Homeownership New construction Acquisition/rehabilitation Habitat for Humanity Owner occupied rehabilitation Down payment and closing cost assistance Project for Pride in Living/St. Paul 8

9 AHP Application Process Sponsor (applicant) must partner with a FHLBDM member and request their support Sponsor registers with FHLB Des Moines Member provides sponsor with User ID and Password for online AHP application Sponsor completes online AHP application Member approves AHP application to FHLBDM FHLBDM awards funds after examining score, eligibility, and feasibility, based on requirements of the AHP Implementation Plan. 9

10 Important Dates 2014 AHP Applications Pre-application Start: 7:00 AM February 1, 2014 Pre-application End: 4:30 PM March 31, 2014 Registration Start: 7:00 AM March 15, 2014 Registration End: 4:30 PM April 15, 2014 Application Start: 7:00 AM April 15, 2014 Application End: 4:30 PM May 15, 2014 Member Institution Approval Start: 7:00 AM April 15, 2014 Member Institution Approval End: 4:30 PM May 15, 2014 AHP AWARDS ANNOUNCED November 2014 No applications will be accepted after the AHP deadline. In addition, any applications with missing exhibits at the time of the deadline will be considered incomplete. 10

11 Points AHP Scoring Criteria Priority 1 Donated property Priority 2 Non-profit or Government Sponsorship Priority 3 Income Targeting Priority 4 Homeless Households Priority 5 Promotion of Economic Empowerment Priority 6 First District Priority (in-district, special needs households) Priority 7 Second District Priority (Native American, acquisition/rehab) Priority 8 Subsidy Per Unit Priority 9 Community Stability (vacant and abandoned, adaptive re-use, new construction, no displacement) 100 maximum points Scoring priorities change from year-to-year. Keep up-to-date with the scoring criteria by reviewing the AHP Implementation Plan each year. 11

12 Sponsor and Member Roles /Responsibilities Member and sponsor enter into Subsidy Agreement with FHLBDM describing commitments of the AHP application. Sponsor conducts project and submits Subsidy Transfer Request with required monitoring documentation to member. Member signs form and sends to FHLBDM. FHLBDM reviews request and provides AHP funds to member. Rental project typically one disbursement of funds Homeownership projects receive multiple disbursements Member provides funds to sponsor. Member and sponsor have fiduciary responsibility to ensure the project is completed as described in the AHP application. Sponsor has 12 months to request disbursement of funds and 24 months to complete the project. 12

13 FHLB Des Moines Web Resources at fhlbdm.com

14 Down Payment Programs Homeownership Fund Native American Homeownership Initiative Contact Community Investment , ext. 1173

15 Down Payment Programs Down payment programs are only available to member financial institutions Funds to assist owner occupant homebuyers Funds for down payment and closing cost assistance Funds may be used for property rehabilitation assistance in connection with the purchase of the home 15

16 Homeownership Fund Assists owner-occupant homebuyers in rural and urban areas At least one third assisted must be first-time homebuyers Households at or below 80% median income $2,000,000 available in 2014 Member applications taken September 2014 Funds awarded to members by lottery Individual member award maximum $15,000 Individual household award maximum $5,000 16

17 Native American Homeownership Initiative Assists eligible Native American homebuyers $300,000 available through December 2014 Homebuyer must be an enrolled tribal member Households at or below 80% median income First-come, first-served to members Member enrollment now open Individual household award $10,000 17

18 Questions? learn more about the competitive Affordable Housing Program Thursday, February 27 2:15 4:00 Affordable Housing Program Auxiliary Training