The Affordable Housing Program (AHP) regulations require that the Federal Home Loan Bank of Chicago (FHLB Chicago), 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 FHLB Chicago 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. Procedure for AHP Funding 1. Prior to initial funding, a Subsidy Agreement outlining the responsibilities of the member, sponsor and the FHLB Chicago must be executed. The FHLB Chicago 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. 2. Sponsor requests funding from member and submits required documentation to member. 3. 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 FHLB Chicago's requirements. 4. Member disburses the AHP subsidy to the homebuyer/project and records a lien on the property for the amount of the AHP subsidy. 5. Member submits a funding request and required documentation to the FHLB Chicago for reimbursement. 6. The FHLB Chicago 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. 7. The FHLB Chicago requests any further documentation needed for the review from the member and/or sponsor. 8. When all documentation has been reviewed and approved, the FHLB Chicago deposits the reimbursement of the AHP subsidy into the member's Daily Investment Deposit (DID) account with the FHLB Chicago. The FHLB Chicago 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 FHLB Chicago request for information regarding this or another AHP project; or • Been asked by the FHLB Chicago to cure a noncompliant situation with this or another project and the resolution is still pending.