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AHP Subsidy Repayment

Under certain circumstances, members and project sponsors may be required to return AHP subsidies to the Bank.

Resale to a Non-Income-Qualified Homebuyer/Refinancing Without Subordination
For owner-occupied projects, members and project sponsors may be required to return AHP subsidies to the Bank as a result of:

  • resale of an AHP-assisted unit to a non-income-qualified homebuyer (household income above 80% of area median income), or
  • refinance of an AHP-assisted unit without subordination to a new first mortgage, if the resale or refinance occurs within the 5-year AHP retention period.
The pro rata repayment will be based on the amount of time remaining in the AHP retention period (based on the loan closing date). The subsidy repayment calculation must be based on the Bank's methodology using the following workbook:

A printed copy of this worksheet must be provided at the time of notification to the Bank of subsidy repayment.
 
The member must notify the Bank of a foreclosure event occurring within the 5-year AHP retention period for owner-occupied projects, and within the 15-year AHP retention period for rental projects. For owner-occupied projects, the obligation to repay AHP subsidy shall terminate after any foreclosure.
A printed copy of this worksheet must be provided at the time of notification to the Bank.

Other Repayments
Repayments of AHP subsidies and/or interest on subsidies may also be required in the following circumstances:

  • The member is unable to deliver the AHP subsidy to the project sponsor or homebuyers within the required timeframes for subsidy delivery:
    • Prior to May 1, 2010: 3 months (90 days) for rental projects and 6 months (180 days) for owner-occupied projects.
    • May 1, 2010 and after: 30 days for both rental and owner-occupied projects.
  • A reduction in the project financing gap resulting from lower than anticipated project development costs or increases in financing sources.
  • A reduction in the number of AHP-assisted units.
  • Project non-compliance or failure to demonstrate need for AHP subsidy as determined by the Bank's compliance monitoring review.
Notification to Bank and Funds Wire Transfer
All repayments to be Bank should be processed through the member sponsor of a specific project. If a repayment results from the sale or refinancing of an owner-occupied unit, the Bank must be notified in writing prior to the repayment. The Bank requires that all AHP-related remittances be sent to the Bank via wire transfer according to the following instructions:

ABA Routing #121000701
FHLBSF
For Credit Account: 0349008-475
Attn: Community Investment Department
Re: [AHP Project #]
The AHP project number must be included in all correspondence and in the wire instructions to ensure that remitted funds are tracked appropriately.
© 2000-2010 Federal Home Loan Bank of San Francisco
Federal Home Loan Bank of San Francisco

AHP Subsidy Repayment

Under certain circumstances, members and project sponsors may be required to return AHP subsidies to the Bank.

Resale to a Non-Income-Qualified Homebuyer/Refinancing Without Subordination
For owner-occupied projects, members and project sponsors may be required to return AHP subsidies to the Bank as a result of:

The pro rata repayment will be based on the amount of time remaining in the AHP retention period (based on the loan closing date). The subsidy repayment calculation must be based on the Bank's methodology using the following workbook:

A printed copy of this worksheet must be provided at the time of notification to the Bank of subsidy repayment.
 
The member must notify the Bank of a foreclosure event occurring within the 5-year AHP retention period for owner-occupied projects, and within the 15-year AHP retention period for rental projects. For owner-occupied projects, the obligation to repay AHP subsidy shall terminate after any foreclosure.
A printed copy of this worksheet must be provided at the time of notification to the Bank.

Other Repayments
Repayments of AHP subsidies and/or interest on subsidies may also be required in the following circumstances:

Notification to Bank and Funds Wire Transfer
All repayments to be Bank should be processed through the member sponsor of a specific project. If a repayment results from the sale or refinancing of an owner-occupied unit, the Bank must be notified in writing prior to the repayment. The Bank requires that all AHP-related remittances be sent to the Bank via wire transfer according to the following instructions:

ABA Routing #121000701
FHLBSF
For Credit Account: 0349008-475
Attn: Community Investment Department
Re: [AHP Project #]
The AHP project number must be included in all correspondence and in the wire instructions to ensure that remitted funds are tracked appropriately.



© 2000-2010 Federal Home Loan Bank of San Francisco