AHP Disbursement Requests: Rental 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 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 request disbursement of funds.

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.

Legally Enforceable Retention Mechanism. AHP funds disbursed by the member to a project sponsor must be secured by a deed restriction or other legally enforceable retention agreement or instrument containing the requirements of the AHP regulations. Refer to the AHP retention, repayment, and recovery provisions described in the AHP Direct Subsidy Agreement - Rental Project. 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 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 additional information will be delayed until all questions have been satisfactorily answered. 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 phase of project development. However, subsidies received by a member must be disbursed to the project sponsor and applied to project development costs within three 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 three-month period.

Recapture or Deobligation of AHP Subsidy. The Bank evaluates the need for AHP subsidy at various times during a project’s development and operating life in accordance with the Bank’s feasibility guidelines and policies and procedures for disbursement of funds, modifications, and monitoring of projects. If the Bank determines that the amount of subsidy awarded or previously disbursed 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.

AHP Disbursement Requests: Rental Projects General Information for Members and Project Sponsors

Go to Rental Disbursement Instructions
Go to Rental Disbursement Forms

In processing a request for funds, the Bank reviews information submitted with the disbursement request, as well as other project information obtained from the member and sponsor. The Bank:

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 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.

When submitting a disbursement request, members should consider:

Member Creditworthiness. Only creditworthy members may request disbursement of funds.
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.
Legally Enforceable Retention Mechanism. AHP funds disbursed by the member to a project sponsor must be secured by a deed restriction or other legally enforceable retention agreement or instrument containing the requirements of the AHP regulations. Refer to the AHP retention, repayment, and recovery provisions described in the AHP Direct Subsidy Agreement - Rental Project. 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 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 additional information will be delayed until all questions have been satisfactorily answered. 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 phase of project development. However, subsidies received by a member must be disbursed to the project sponsor and applied to project development costs within three 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 three-month period.
Recapture or Deobligation of AHP Subsidy. The Bank evaluates the need for AHP subsidy at various times during a project’s development and operating life in accordance with the Bank’s feasibility guidelines and policies and procedures for disbursement of funds, modifications, and monitoring of projects. If the Bank determines that the amount of subsidy awarded or previously disbursed 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.