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AHP Compliance Monitoring


Procedures for Compliance Monitoring
The Bank conducts compliance monitoring for completed projects in accordance with requirements of 12 CFR Part §951.10 and §951.11.

Determination of Project Completion
Except for rental projects that receive AHP disbursement after construction has been completed, the Bank is generally notified that a project is complete through the Semiannual Survey.

Initial Monitoring (IM) – Owner-Occupied Projects
Upon notification of project completion, the Bank requires a signed Certificate of Member, Initial Monitoring – After All Subsidy Disbursement (FC 2181) (PDF). The Bank requests the initial monitoring (IM) documentation from the project sponsor and completes IM. Sponsors who have received this request must follow the Project Sponsor Instructions (FC 2270) (.doc) and submit the required documentation no later than 15 days from the date the request is sent.

As part of the required information, the sponsor must complete either the Owner-Occupied Workbook - Construction/Rehabilitation (.xls) or Owner-Occupied Workbook - Purchase of Existing Properties (.xls) depending on the type of project.

After receiving the initial monitoring information, the Bank requests the AHP notes and deeds of trust, first mortgage notes and deeds of trust, other financing documents as applicable (downpayment assistance, second and third loans, etc.) and income qualification documents (please refer to Income Qualification Guidelines ) for a sample of households.

Initial Monitoring (IM) – Rental Projects
Upon notification of project completion, or at the time of subsidy disbursement for a completed project, the Bank requests the initial monitoring (IM) documentation from the project owner and completes IM. Project owners who have received this request must follow the Project Owner Instructions (FC 2271) (.doc) and submit the required documentation no later than 15 days from the date the request is sent.

As part of the required information, the project owner must complete the Certificate of Project Owner, Initial Monitoring – After Project Completion (FC 2182) (PDF) and Rental Workbook - Initial Monitoring (.xls).

After receiving the initial monitoring information, the Bank requests income qualification (please refer to Income Qualification Guidelines) and current rent documents for a sample of households.

Long-Term Monitoring (LTM) – Rental Projects
The retention period for rental projects awarded AHP subsidy is 15 years from project completion. The Bank conducts off-site long-term monitoring (LTM) on rental projects that have not received Low Income Housing Tax Credits and received over $100,000 in AHP Subsidy. Applicable projects will be monitored every 3 years from the completion of IM.

The Bank requests income qualification documents (please refer to Income Qualification Guidelines) and current rent documents for a sample of households. Project owners must send requested information to the Bank no later than 15 days from the date the request is sent.

Long-Term Monitoring (LTM) Project Owner Certifications
For all completed rental projects regardless of the amount of approved AHP subsidy award, project owners are required to certify every year during the AHP retention period and subsequent to IM that the project complies with the project’s approved rent and income commitments made in the AHP application or as a result of approved project modifications.

The Bank requests certifications online from project owners.

Income Qualification Guidelines
The Bank requires that each AHP-assisted unit be income-qualified according to AHP Income Qualification Guidelines (FC 2258) and that proper third party income documentation be provided according to the Acceptable Forms of Verification for Household Income Qualification (FC 2259). All guidelines and required forms are provided in the AHP Household Income Qualification Workbook (.xls), which includes:
  • AHP Income Qualification Guidelines
  • Acceptable Forms of Verification for Household Income Qualification
  • Instructions for using the AHP Household Income Qualification Worksheet
  • AHP Household Income Qualification Worksheet
The AHP Income Qualification Guidelines provide instructions on what, when, and how documents must be submitted depending on the type of project. The project sponsor or Member should refer to the Acceptable Forms of Verification for Household Income Qualification for obtaining applicable third party verification documents. The project sponsor or Member must use the AHP Household Income Qualification Worksheet to calculate total annual income for each household in the project.
 
Legally Enforceable Retention Documents
The AHP regulation requires that AHP-assisted owner-occupied units and rental projects be subject to a deed restriction or other legally enforceable retention agreement or instrument containing the requirements of the AHP regulations. The sample AHP Owner-Occupied Promissory Note (.doc) and Owner-Occupied Rider to Deed of Trust (.doc) may be used to prepare the AHP retention documents for owner-occupied competitive projects. The sample AHP Rental Promissory Note (.doc) and Rental Rider to Deed of Trust (.doc) may be used to prepare the AHP retention documents for rental projects. These forms are provided only as guides when preparing a note and rider to the deed of trust. These documents address the minimum retention requirements of the AHP Regulation only. The rider is a document designed to be attached to a member's deed of trust securing the AHP obligation and recorded with the deed of trust.

Note: This Rider to the Deed of Trust is to be attached to a member prepared deed of trust that secures only the AHP obligation as evidenced by the AHP Promissory Note.  The AHP Rider must not be attached to a deed of trust that secures any loan(s) on the AHP project other than the obligation evidenced by the AHP Promissory Note.

The Federal Home Loan Bank of San Francisco makes no representation or warranty that a court will enforce these form documents in accordance with applicable state law. We strongly recommend that each member have its counsel review the documents to address any state law requirements, including but not limited to consumer credit laws, notary requirements, usury laws, recording procedures and requirements, and requirements for mortgage states. The final note and rider to the deed of trust must meet the requirements of your jurisdiction.
© 2000-2008 Federal Home Loan Bank of San Francisco
Federal Home Loan Bank of San Francisco

AHP Compliance Monitoring


Procedures for Compliance Monitoring
The Bank conducts compliance monitoring for completed projects in accordance with requirements of 12 CFR Part §951.10 and §951.11.

Determination of Project Completion
Except for rental projects that receive AHP disbursement after construction has been completed, the Bank is generally notified that a project is complete through the Semiannual Survey.

Initial Monitoring (IM) – Owner-Occupied Projects
Upon notification of project completion, the Bank requires a signed Certificate of Member, Initial Monitoring – After All Subsidy Disbursement (FC 2181) (PDF). The Bank requests the initial monitoring (IM) documentation from the project sponsor and completes IM. Sponsors who have received this request must follow the Project Sponsor Instructions (FC 2270) (.doc) and submit the required documentation no later than 15 days from the date the request is sent.

As part of the required information, the sponsor must complete either the Owner-Occupied Workbook - Construction/Rehabilitation (.xls) or Owner-Occupied Workbook - Purchase of Existing Properties (.xls) depending on the type of project.

After receiving the initial monitoring information, the Bank requests the AHP notes and deeds of trust, first mortgage notes and deeds of trust, other financing documents as applicable (downpayment assistance, second and third loans, etc.) and income qualification documents (please refer to Income Qualification Guidelines ) for a sample of households.

Initial Monitoring (IM) – Rental Projects
Upon notification of project completion, or at the time of subsidy disbursement for a completed project, the Bank requests the initial monitoring (IM) documentation from the project owner and completes IM. Project owners who have received this request must follow the Project Owner Instructions (FC 2271) (.doc) and submit the required documentation no later than 15 days from the date the request is sent.

As part of the required information, the project owner must complete the Certificate of Project Owner, Initial Monitoring – After Project Completion (FC 2182) (PDF) and Rental Workbook - Initial Monitoring (.xls).

After receiving the initial monitoring information, the Bank requests income qualification (please refer to Income Qualification Guidelines) and current rent documents for a sample of households.

Long-Term Monitoring (LTM) – Rental Projects
The retention period for rental projects awarded AHP subsidy is 15 years from project completion. The Bank conducts off-site long-term monitoring (LTM) on rental projects that have not received Low Income Housing Tax Credits and received over $100,000 in AHP Subsidy. Applicable projects will be monitored every 3 years from the completion of IM.

The Bank requests income qualification documents (please refer to Income Qualification Guidelines) and current rent documents for a sample of households. Project owners must send requested information to the Bank no later than 15 days from the date the request is sent.

Long-Term Monitoring (LTM) Project Owner Certifications
For all completed rental projects regardless of the amount of approved AHP subsidy award, project owners are required to certify every year during the AHP retention period and subsequent to IM that the project complies with the project’s approved rent and income commitments made in the AHP application or as a result of approved project modifications.

The Bank requests certifications online from project owners.

Income Qualification Guidelines
The Bank requires that each AHP-assisted unit be income-qualified according to AHP Income Qualification Guidelines (FC 2258) and that proper third party income documentation be provided according to the Acceptable Forms of Verification for Household Income Qualification (FC 2259). All guidelines and required forms are provided in the AHP Household Income Qualification Workbook (.xls), which includes:
The AHP Income Qualification Guidelines provide instructions on what, when, and how documents must be submitted depending on the type of project. The project sponsor or Member should refer to the Acceptable Forms of Verification for Household Income Qualification for obtaining applicable third party verification documents. The project sponsor or Member must use the AHP Household Income Qualification Worksheet to calculate total annual income for each household in the project.
 
Legally Enforceable Retention Documents
The AHP regulation requires that AHP-assisted owner-occupied units and rental projects be subject to a deed restriction or other legally enforceable retention agreement or instrument containing the requirements of the AHP regulations. The sample AHP Owner-Occupied Promissory Note (.doc) and Owner-Occupied Rider to Deed of Trust (.doc) may be used to prepare the AHP retention documents for owner-occupied competitive projects. The sample AHP Rental Promissory Note (.doc) and Rental Rider to Deed of Trust (.doc) may be used to prepare the AHP retention documents for rental projects. These forms are provided only as guides when preparing a note and rider to the deed of trust. These documents address the minimum retention requirements of the AHP Regulation only. The rider is a document designed to be attached to a member's deed of trust securing the AHP obligation and recorded with the deed of trust.

Note: This Rider to the Deed of Trust is to be attached to a member prepared deed of trust that secures only the AHP obligation as evidenced by the AHP Promissory Note.  The AHP Rider must not be attached to a deed of trust that secures any loan(s) on the AHP project other than the obligation evidenced by the AHP Promissory Note.

The Federal Home Loan Bank of San Francisco makes no representation or warranty that a court will enforce these form documents in accordance with applicable state law. We strongly recommend that each member have its counsel review the documents to address any state law requirements, including but not limited to consumer credit laws, notary requirements, usury laws, recording procedures and requirements, and requirements for mortgage states. The final note and rider to the deed of trust must meet the requirements of your jurisdiction.


© 2000-2008 Federal Home Loan Bank of San Francisco