Affordable Housing Program Eligibility + Scoring
Funding awarded through the Affordable Housing Program (AHP) must meet certain criteria. Members and housing developers interested in applying should review the following information about eligibility, income guidelines, feasibility, scoring, and the AHP Implementation Plan.
Eligible Homeownership Initiatives
AHP funding can be used to finance owner-occupied initiatives for households with incomes up to 80% of the area median income.* Examples of eligible uses include:
- Single-family houses
- Down-payment and closing-cost assistance
- Mobile-home parks
Eligible Rental Initiatives
AHP funding can be used to finance rental housing in which at least 20% of the units are for households with incomes that do not exceed 50% of the median income for the area. Examples of eligible uses include multifamily rental housing, single-room-occupancy (SRO) housing, and senior housing.
Rental applications for AHP subsidy must use the operating proforma template available through the online AHP application. Download the file and insert the applicable data. Instructions are included in the file. This template is designed to help sponsors provide the required housing operating income, expenses, debt service, and cash flow data to demonstrate operational feasibility and need for subsidy.
Eligible Uses of Funds
Program funds may only be used for the direct costs of producing or financing affordable housing. Uses include acquisition, construction, rehabilitation costs, related soft costs, interest-rate buy-downs, down-payment and closing-cost assistance, and matched-savings programs. Only those units that are affordable, as defined by AHP regulations, are eligible for funding.
Supportive services and commercial space associated with a development are ineligible for AHP funding.
The development sponsor must pass the benefits of the AHP funding through to the initiative and/or end user.**
AHP Income Calculation Guidelines
Please review the income calculation guidelines for homeownership units and income calculation guidelines for rental units, which apply to all AHP initiatives and must be used by members, sponsors, and project owners for the calculation of household income. The income calculation guidelines and standards will be posted in early 2024. The same standards are used by our staff to review and approve household income for both rental and homeownership initiatives.
A summary income calculation cover sheet must be used for each household when submitting income documents for review. We accept all typical industry standard forms or similar documentation.
AHP Implementation Plan
Each year, FHLBank Boston, in consultation with our Advisory Council, develops an implementation plan for the AHP, which includes details about allowable uses and restrictions as well as project cost and feasibility guidelines.
AHP Scoring Worksheet
AHP is based on a competitive scoring system. The scoring priorities are listed below. Also, applicants can refer to the AHP Self-Scoring Worksheet, which is designed to provide insight into how your project may score.
- Initiatives that finance the purchase, construction, and/or rehabilitation of owner-occupied housing for households with aggregate incomes up to 80% of the area median income for a five-year retention period; or
- Initiatives that finance the purchase, construction, and/or rehabilitation of rental housing, of which at least 20% of the units will be occupied by and affordable for very low-income households earning up to 50% of the area median income for a 15-year retention period.
- Use of donated federal-government-owned or other properties (up to 5 points)
- Sponsorship by a nonprofit organization or government entity (up to 5 points)
- Home purchase by low- or moderate-income first-time homebuyers (up to 5 points)
- Targeting consistent with the ownership or rental priorities (up to 20 points)
- Underserved communities and populations:
- housing for homeless households (up to 5 points);
- housing in rural areas (5 points)
- Creating economic opportunity:
- promotion of empowerment (up to 6 points);
- residential economic diversity (5 points)
- Bank district priorities:
- member financial participation (up to 12.0 points);
- inclusion of minority- and women-owned business enterprises on the development team (up to 5 points);
- effectiveness —AHP subsidy per unit (up to 5 points)
- in-district priority (5 points)
- Community stability, including affordable housing preservation (up to 17 points):
- preservation, reuse, or rehabilitation effectiveness — AHP subsidy per unit (up to 4 points);
- smart growth (up to 4 points);
- Sustainability and climate resiliency (up to 9 points)
*Area median income is defined by the U.S. Department of Housing and Urban Development (HUD). Refer to HUD’s website for the latest median income guidelines. For initiatives funded using housing tax credits, the income limits used for 50% and 60% of the area median income will be the HUD Multifamily Tax Subsidy Project limits as adjusted for household size.
**The developer/sponsor cannot retain any portion of the AHP funds as profit or for the purpose of additional development (excluding approved development fees). AHP funds may not be "recycled" or used for capitalized operating reserves or nonresidential spaces.