Documentation for funding owner occupied projects where the AHP subsidy is used for down payment and closing costs The following documents are required to process each funding request. Please see below for further information on each document and downloadable versions of the documents. 1. AHP Subsidy Agreement - Owner Occupied Project (Submit prior to first request) 2. Funding Request Form 3. Sources & Uses Statement 4. Owner Income Worksheet 5. Settlement Statement 6. Income Verification (for 1st, 2nd, and 3rd Homebuyer) 7. Retention Vehicle and Agreement (for 1st, 2nd, and 3rd Homebuyer) The documents are described in detail below and blank forms/samples are provided where applicable. 1. To request a disbursement of AHP funds, members must submit a Funding Request form indicating the amount requested and confirming that the project is still in compliance with the commitments made in the application. The form must have an authorized signature from both the member and the project sponsor. Please review the Funding Request Instructions for help with completing the funding request form.     • Funding Request Instructions     • Funding Request Form - Owner Occupied Project 2. All Owner Occupied projects must submit an updated Sources and Uses Statement showing current costs and current sources of funding with each funding request. Sources and Uses of funds must balance and all funding sources must be committed. A settlement statement or HUD-1 will be accepted in lieu of a sources and uses statement if all of the associated costs for that unit are contained in the settlement statement.     • Sources and Uses Statement 3. Projects must submit an Owner Income Worksheet listing the homebuyers to be funded under the request. The information provided on the worksheet allows the FHLB Chicago to confirm that the homebuyers are eligible for the AHP subsidy and meet the commitments made in the AHP application. Please review the Owner Income Worksheet Definitions for help with completing the owner income worksheet.     • Owner Income Worksheet The FHLB Chicago uses median income guidelines published annually by the Department of Housing and Urban Development (HUD) to determine income eligibility. 4. A Settlement Statement (HUD-1 or equivalent document that presents the selling price, funding provided on behalf of buyer, closing costs, etc.) for each home purchased must be submitted to verify that the AHP subsidy was passed through to the borrower. The AHP subsidy should be listed on the Settlement Statement and labeled as "AHP Grant." The Settlement Statement must be signed. 5. To determine income eligibility for the AHP, the homebuyer's income, which is required on the Owner Income Worksheet, must be calculated based on the Income Calculation Guidelines provided below. An Income Calculation Worksheet is also provided below to assist you with the calculation. A documented income calculation with supporting income verification should be retained in the homebuyer's file and be available upon request from the FHLB Chicago.     • Income Calculation Guidelines     • Income Calculation Worksheet     • Income Calculation Worksheet - Short Form The FHLB Chicago will review income documentation for a sample of the homebuyers to verify income eligibility. The current sampling minimum is 20% of the project's total units. Only send documentation for the first three (3) homebuyers. The FHLB Chicago will request additional income documentation at its discretion. The member should submit the documentation they or the project sponsor reviewed to qualify the household as income eligible for the project. The date of the documents should correlate to the Income Verification Date listed on the Owner Income Worksheet. 6. AHP funds disbursed by the member to the homebuyer must be secured by a deed restriction or other legally enforceable retention agreement. It is the member's responsibility to ensure that the retention documents satisfy the requirements of the AHP regulations and that they are legally enforceable by the member against the project. The member must record the retention agreement. The FHLB Chicago will review retention agreements for a sample of the homebuyers to verify that the agreements meet the requirements of the AHP regulations. The FHLB Chicago will not review the member's retention agreement for the purpose of determining the legal enforceability of the agreement. Please submit the retention agreement for the first three (3) homebuyers. The FHLB Chicago will request additional retention agreements at its discretion. The FHLB Chicago has prepared sample documents for use in Illinois and Wisconsin.     • Sample Mortgage and Retention Agreement - Illinois     • Sample Mortgage and Retention Agreement - Wisconsin For projects located outside of Illinois and Wisconsin, members should work with legal counsel to draw up retention documents that meet the banking laws of the state in which the property is located, in addition to the requirements of the AHP regulations.