The Federal Home Loan Bank of Chicago (FHLB Chicago) will hold one competitive application round in 2008. The application deadline is April 1, 2008. The AHP application materials, including an Instruction and Scoring Guide, will be available on the FHLB Chicago's web site approximately 60 days prior to the application deadline. Please use updated materials for the current year and review download notes below. • Clear your browser's cache to be sure that documents from 2008 are downloaded. Hold down SHIFT and then click REFRESH in your browser's toolbar under the menu. • When File Download dialog box appears with the option to open the file or save it to your computer, click SAVE. • All editing of documents should be done in files saved to user's network or local computer. The 2008 application materials include the following documents: Application Instructions and Scoring Guide (.pdf) Application (.doc) Exhibits (.doc) Exhibit XV-B Commitment to Provide Services Memorandum of Understanding (.doc) Exhibit XVII Commitment of Member Financial Involvement (.doc) Exhibits for Owner Occupied Projects (.xls) Exhibits for Rental Projects (.xls) We highly recommend that you review the Application Instructions and Scoring Guide before you begin filling out the application. Community Investment Staff will hold workshops for members and sponsoring organizations prior to each competitive round to provide applicants with technical assistance. Please check the Community Investment Calendar for dates, locations and registration information. Applications must be received at the FHLB Chicago by 5:00 p.m. on the deadline date. Applicants must submit an original and three copies. Facsimile and e-mail applications will not be accepted. Who is eligible to apply? Member institutions that hold stock in the FHLB Chicago are eligible to apply for AHP funds. Non-profit organizations, for-profits and public agencies that wish to access AHP funds must partner with a FHLB Chicago member. We strongly recommend that sponsoring organizations contact a member as early as possible and work with the member in developing the application. How much AHP is available? The FHLB Chicago will allocates approximately 65% of the total program funds to the AHP competitive application program. The remaining 35% will be allocated to the Downpayment Plus® Program. How much can I apply for? The FHLB Chicago has limited the amount of subsidy per project to $300,000. The FHLB Chicago has also limited the amount of subsidy a member may be awarded to 25% of the available funds for the round. What type of project is eligible? AHP subsidies must be used for one of two broad purposes: • To finance the purchase, construction and/or rehabilitation of owner-occupied housing for households with incomes at or below 80% of area median income; or • To finance the purchase, construction and/or rehabilitation of rental housing. At least 20% of the units, must be occupied by, and affordable to, households with incomes at or below 50% of area median income. Eligible uses of funds under the competitive program are acquisition, construction, or rehabilitation costs, including related soft costs, and downpayment and closing cost assistance. AHP funds may not be used for capitalized operating reserves, non-residential space, or to provide support services. The benefits of the AHP subsidy must be passed through to the project or the end user. When will I be notified if my application has received an award? Awards will be announced during the third quarter. If I am awarded funds, when will they become available? Prior to disbursement of funds by the FHLB Chicago, a Subsidy Agreement between the member, sponsor and the FHLB Chicago must be executed, all conditional award requirements must be met, and a funding request and all required documentation must be submitted to the FHLB Chicago. The funding process and required documentation are outlined in the AHP Funding section. What are my responsibilities as an AHP recipient? Per the AHP regulations, members, sponsors and the FHLB Chicago have certain responsibilities that must be conducted throughout the project's affordability retention period, which is five years for an owner occupied project and fifteen years for a rental project. These responsibilities are outlined in the AHP Monitoring section. Can I reapply if my application does not receive an AHP award? If your application is not awarded AHP funds, you can reapply in any future funding round. We strongly recommend that you contact Community Investment staff prior to reapplying to discuss ways in which you may be able to improve the application and increase your chance of receiving an AHP award.

How to Package Your Application Step 1: Be sure you are using the correct application for the current year. Step 2: All pages should be single sided and preferably 8.5" by 11". If necessary, legal or larger size paper may be used. Step 3: If additional space is needed to answer a question, insert the extra page behind the applicable application page and label the page. Step 4: Required exhibits should be clearly labeled with the exhibit number from the Checklist of Exhibits. Place all exhibits behind the application in numerical order. Index tabs are required. Step 5: The application must be signed by both the member and the sponsor. Step 6: The application, including exhibits, should be securely stapled or clipped. No binders please. Step 7: Submit an original and 3 copies of the application and all exhibits. Step 8: Applications should be sent/delivered to: Community Investment Group Federal Home Loan Bank of Chicago 111 E. Wacker Drive Suite 800 Chicago, Illinois 60601 Be sure and include the Suite Number on all applications sent by mail or express delivery. Step 9: The application must be received at the Federal Home Loan Bank of Chicago by 5:00 p.m. on the deadline date. Fax or email copies are not acceptable.