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| Repayment of the DPP® Subsidy |
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Under certain circumstances, members and project sponsors/owners may be
required to return DPP® subsidies to the Chicago Federal Home Loan Bank
(Chicago FHLB). Checks should be made payable to or endorsed to the Chicago FHLB.
Checks should be mailed to the following address:
Community Investment Group
Chicago Federal Home Loan Bank
111 E. Wacker Drive, Suite 800
Chicago, IL 60601
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| Repayment by the Homebuyer/Owner |
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The Chicago FHLB must be given notice of any sale, refinancing,
foreclosure, or change in owner-occupied status occurring prior to the
end of the retention period.
- In the case of a sale, a pro rata share of the DPP subsidy,
reduced for every full month the seller owned the unit and used it as
their primary residence, shall be repaid to the Chicago FHLB from any
net gain realized upon the sale of the unit after deduction for sales
expenses, unless the purchaser is a low or moderate income household,
i.e. at time of execution of sales contract having an income of 80% or
less of area median income based on household size, and assumes the
remaining DPP lien.
- In the case of refinancing, a pro rata share of the DPP
subsidy, reduced for every month the seller owned the unit and used it
as their primary residence, shall be repaid to the Chicago FHLB from
any net gain realized upon refinancing unless the unit continues to
be subject to a legally enforceable retention agreement.
- In the case of a foreclosure, the obligation to repay any subsidy
is terminated after foreclosure.
The DPP repayment is calculated on a monthly basis with 1/60th of the
subsidy forgiven for each full month.
The member must include a Repayment Worksheet with the check.
Click here for assistance with calculating a repayment.
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