The Federal Housing Finance Agency today issued an advisory bulletin that it said would simplify the process of applying for funding for rental projects through the Federal Home Loan Banks’ affordable housing programs.
The 11 FHLBanks each operate an affordable housing program, or AHP, that provides grants or subsidized advances to fund rental housing and homeownership opportunities for low- and moderate-income households, according to the FHFA. Nonprofits and other sponsors submit applications to the FHLBank for financial assistance from an AHP. “FHFA, which oversees the FHLBanks, has heard feedback that the process is too burdensome,” the agency said in a statement.
According to an FHFA summary, the bulletin reinforces the importance of scrutinizing funding requests to ensure that AHP funds support the projects most in need. It further provides a streamlined compliance process and eliminates uncertainty for project sponsors about the amount of their AHP award. Finally, it contains clarity for FHLBanks on determining the need for an AHP subsidy when a rental project includes capitalized reserves and supportive services.
“FHFA is simplifying the process of applying for AHP funding to expand the number of project sponsors and improve the FHLBanks’ ability to address affordable housing needs in their districts,” FHFA Director Sandra Thompson said.
