AHP Disbursement Requests: Owner-Occupied Projects
General Information for Members and Project Sponsors

• verifies that the project continues to qualify for the awarded subsidy based on the applicable threshold requirements and scoring criteria;
• confirms that the project is in compliance with the commitments made in the original approved application or approved modification(s);
• confirms that the project is in compliance with the Bank's Income Qualification Guidelines;
• re-evaluates the financial and operational feasibility of the project, applying the Bank’s feasibility guidelines to current project financial information; and
• verifies the project’s continued need for subsidy.

• Member Creditworthiness. Only creditworthy members may make requests of the subsidy disbursement.
• Restricted Access to AHP Subsidy. The Bank reserves the right to delay or deny subsidy disbursement to a member or sponsor if i) either the member or the sponsor has failed to respond to a prior Bank request for information regarding this or other AHP projects or ii) if the member or sponsor has been asked by the Bank to cure a noncompliant situation and resolution is still pending.
• Executed Agreement. Members and sponsors requesting AHP funds from the Bank must have an executed Direct Subsidy Agreement for each project for which disbursement is requested.
• Legally Enforceable Retention Mechanism. All subsidies disbursed by the member to a project sponsor or to an individual homebuyer must be secured by a deed restriction or other legally enforceable retention agreement or instrument containing the AHP regulations. If the subsidy is disbursed during construction to the project sponsor to cover construction costs, the member must secure the AHP subsidy amount and then reconvey and secure the appropriate per unit subsidy amount against each individual property at the close of escrow. Refer to the AHP retention, repayment, and recovery provisions described in the AHP Direct Subsidy Agreement - Owner-occupied Project. The sample AHP Promissory Note (.doc) and Rider to Deed of Trust (.doc) for owner-occupied competitive projects may be used to prepare the AHP retention documents. These forms are provided only as guides when preparing a note and rider to the deed of trust for owner-occupied units. These documents address the minimum retention requirements of the AHP regulations only. 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.
• AHP Subsidy Disbursement Timeline. The Bank will process AHP disbursement requests within 30 calendar days.
  • The Bank acknowledges disbursement requests via e-mail within 48 hours of receipt. The acknowledgement specifies the name and telephone number of the Community Investment Consultant assigned to review the disbursement request.
  • Incomplete requests requiring submission of additional information will be delayed until all outstanding questions have been satisfactorily addressed. If the disbursement request cannot be filled within 30 calendar days because of missing information or unresolved questions, the request will be returned to the member for resubmission at a later date.
• Timely Passthrough of AHP Subsidy. A project sponsor may request subsidy disbursement during any stage of a project's development. However, subsidies received by a member must be disbursed to the project sponsor and applied to project or program costs within six months of the date funds are posted to a member's Settlement/Transaction Account. Projects may be assessed an interest charge on funds not used within the six-month period.
• Recapture or Deobligation of AHP Subsidy. The Bank re-evaluates the need for AHP subsidy at various times during a project's development in accordance with the Bank's feasibility guidelines and its policies and procedures for disbursing funds to, modifying, and monitoring projects. If the Bank determines that the amount of subsidy awarded or funded to a project is not justified based on information available to the Bank, the Bank may reduce the amount of subsidy awarded or allowed to remain outstanding to the project. Also, at the Bank's discretion, information and documents pertaining to previously funded mortgages may be requested to verify compliance with AHP requirements prior to subsequent disbursement of subsidy or at initial monitoring.
• Targeting Commitments.  The member and project sponsor shall confirm, on a unit-by-unit basis, whether the units being funded meet the targeting commitments made at application or as modified thereafter. If the project’s unit-by-unit targeting commitments at completion differ from those made at application or as modified thereafter, the project will be re-scored. Subsidies may be recaptured if the project, reflective of such differences in targeting commitments, fails to score high enough to have been approved in the funding round in which it was originally scored and approved. For example, if the higher targeted units are completed early in the project and the sponsor is subsequently unable to complete the remainder of the units, the Bank will re-score the project based only on the completed units. If the new score reduces the project’s rank below the winning projects in the round in which it received subsidy, the Bank will request repayment of all or a portion of the subsidy disbursed previously.