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| Affordable Housing Program Funding |
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The Affordable Housing Program (AHP) regulations require that the Chicago
Federal Home Loan Bank (Chicago FHLB), prior to each disbursement of AHP subsidy,
review project documentation to:
- verify that the project is in compliance with the commitments made
in the approved application or subsequent approved modifications;
- confirm the project's continued need for the AHP subsidy; and
- re-evaluate the current financial and operational feasibility of
the project.
Collaboration between the project member and sponsor is necessary to
complete the funding request form and provide the required documentation.
The documentation required by the Chicago FHLB with the Funding Request is
based on the project type. Select the project type from the right sidebar
for a detailed list of the required documentation.
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| Procedure for AHP Funding |
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- Prior to initial funding, a Subsidy Agreement outlining the
responsibilities of the member, sponsor and the Chicago FHLB must be
executed. The Chicago FHLB will generate the Subsidy Agreement and
forward it to the member and sponsor for their signatures. The language
in the Subsidy Agreement may not be modified.
- Sponsor requests funding from member and submits required
documentation to member.
- Member reviews the documents to verify that the homebuyer/project is
in compliance with the commitments made in the AHP application and that
the documents meet the member's and the Chicago FHLB's requirements.
- Member disburses the AHP subsidy to the homebuyer/project and records
a lien on the property for the amount of the AHP subsidy.
- Member submits a funding request and required documentation to the
Chicago FHLB for reimbursement.
- The Chicago FHLB reviews the funding request and required
documentation to verify that the homebuyer/project is in compliance with
the commitments made in the AHP application, that the project is feasible
and that the AHP subsidy is needed.
- The Chicago FHLB requests any further documentation needed for the
review from the member and/or sponsor.
- When all documentation has been reviewed and approved, the Chicago
FHLB deposits the reimbursement of the AHP subsidy into the member's Daily
Investment Deposit (DID) account with the Chicago FHLB.
The Chicago FHLB reserves the right to deny, and will deny, a subsidy
disbursement to a member or sponsor/owner if either the member or
sponsor/owner has:
- failed to respond to a Chicago FHLB request for information regarding
this or another AHP project; or
- been asked by the Chicago FHLB to cure a noncompliant situation with
this or another project and the resolution is still pending.
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