Who can apply for Affordable Housing Program (AHP) funds?
How do I apply for funds?
How much and what type of funding is available?
How do I know what subsidized rate to apply for?
How is the subsidy on a subsidized advance calculated?
What is the success rate for AHP applications?
What restrictions are placed on projects using AHP funds?
Can AHP funds be used to pay for feasibility studies, social services, operating reserves, or nonresidential space in a housing development?
Can developers with little or no experience developing affordable housing participate?
What are the reporting requirements?
Does a member need to underwrite an AHP application if only a grant is requested?
What happens if the development does not remain affordable during the affordability-retention period?
How can I learn more about the AHP?

Who can apply for Affordable Housing Program (AHP) funds?
Only member financial institutions of the Federal Home Loan Bank of Boston can apply for AHP funds. Each application must also be sponsored by the initiative's developer. The developer may be a for-profit or nonprofit developer, a municipality, a Native American tribe, or a state or local agency.

How do I apply for funds?
The Bank awards AHP funds through two competitive rounds per year. The application deadlines for the first and second rounds are on or about the last business day in April and September, respectively. Eligibility guidelines, a list of scoring criteria, and an application package are available online. You can also contact the community investment manager who serves your area for technical assistance.

How much and what type of funding is available?
An award of up to $800,000 is allowed per initiative. AHP awards are made as deeply subsidized loans (advances), grants, or a combination of both. The maximum available grant amount is $400,000. Up to $800,000 may be used to write down the interest rate on an AHP subsidized advance, provided the initiative is not requesting a grant.

How do I know what subsidized rate to apply for?
The sponsor and member should work together to determine what interest rate the development can afford to pay on its mortgage while keeping its units affordable. The member proposes that rate to the Bank, less what the member needs to cover its costs.

How is the subsidy on a subsidized advance calculated?
The subsidy is the difference between the Bank's cost of funds and the interest rate charged to the member. To calculate the amount of AHP subsidy needed to reduce the interest rate to the member, the Bank calculates the difference between the total payments for a loan made at the Bank's cost of funds and the total payments made at the reduced rate. Your community investment manager can walk you through the calculation for your project.

What is the success rate for AHP applications?
On average, the Bank receives 40 to 70 applications per round and funds 30 to 50 percent of those.

What restrictions are placed on projects using AHP funds?
Projects using AHP funds are subject to household-income and housing-payment restrictions during an affordability-retention period. The affordability-retention period is five years for ownership projects and 15 years for rental projects.

Can AHP funds be used to pay for feasibility studies, social services, operating reserves, or nonresidential space in a housing development?
No. AHP funds may only be used to pay for direct costs related to housing rehabilitation or construction. If such activities occur in the development, documentation will be required to show how they are being paid for by means other than AHP funds.

Can developers with little or no experience developing affordable housing participate?
Yes. Developers with little or no experience developing affordable housing can participate, provided that they enter into an agreement or partnership with an individual or organization that has successfully developed similar housing.

What are the reporting requirements?
Semiannual progress reports are required until the project is complete. Upon completion of an initiative, Bank staff compare the completed project with that which was proposed in the application to determine whether the project remains in compliance with the AHP regulation.

Thereafter, members and project sponsors must submit an Annual Compliance Certification annually for 15 years for rental developments. Members that have underwritten a rental development receiving more than $50,000 in subsidy must submit a Periodic Monitoring Report once every six years. Members that have underwritten a rental development receiving more than $250,000 must submit a Periodic Monitoring Report once every four years. Members that have underwritten a rental development receiving more than $500,000 must submit a Periodic Monitoring Report once every two years.

All reports are available online.

Does a member need to underwrite an AHP application if only a grant is requested?
Yes. All AHP applications must be underwritten by a member financial institution. The success of every AHP development depends upon the expert local knowledge of the member.

What happens if the development does not remain affordable during the affordability-retention period?
The Bank will recapture any funds granted to a development that does not remain affordable housing — as described in the AHP application — during the affordability-retention period.

How can I learn more about the AHP?
For other questions about the AHP, please see the AHP section of this site or contact the community investment manager who serves your area.