Documentation for funding owner occupied projects where the AHP subsidy is used for rehabilitation of occupied housing The following documents are required to process each funding request. Please see below for further description of 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. Development Budget 5. Scope of Work Form 6. Owner Income Worksheet 7. Income Verification (for 1st, 2nd and 3rd Homeowner) 8. Retention Vehicle and Agreement (for 1st, 2nd and 3rd Homeowner) The documents are described in detail below and blank forms/samples are provided. 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.     • Sources and Uses Statement (.xls) 3. A current Development Budget detailing total project costs and sources of financing (including terms, rates, and amortization) must be submitted with the funding request.     • Sample Development Budget (.xls) 4. Projects must submit a Rehab Scope of Work Form. The Scope of Work form is provided as a way to summarize costs associated with the rehabilitation of owner occupied units. Please attach invoices to support the work performed. For guidance on eligible rehab costs, please review the Eligible Uses of AHP for Owner Occupied Rehab guidelines.     • Eligible Uses of AHP for Owner Occupied Rehab     • Rehab Scope of Work Form 5. Projects must submit an Owner Income Worksheet listing the homeowner(s) to be funded under the request. The information provided on the worksheet allows the FHLB Chicago to confirm that the homeowners 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 6. Projects must provide evidence of subsidy delivery to show that the AHP subsidy was passed through to the homeowner. Members can meet the evidence of delivery requirement by sending a copy of the check or wire transfer used to pass the subsidy to the homeowner, or pay for the rehabilitation work. 7. 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 uses median income guidelines published annually by the Department of Housing and Urban Development (HUD) to determine income eligibility. The FHLB Chicago must review income documentation for a sample of the homeowners to verify income eligibility. Send documentation for the first three (3) homeowners. 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. 8. AHP funds disbursed by the member to the homeowner(s) 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 is required to record the agreements. The FHLB Chicago will review retention agreements for a sample of the homeowner(s) 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) homeowners. 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, a member should work with its 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.