WISH Subsidy Repayment

Under certain circumstances, members and project sponsors may be required to return WISH subsidies to the Bank.
 
Resale to a Non-Income-Qualified Homebuyer/Refinancing without Subordination
Members and project sponsors may be required to return WISH subsidies to the Bank as a result of:

• resale of an WISH-assisted unit to a non-income qualified homebuyer (household income above 80% of area median income); or
• refinance of an WISH-assisted unit without subordination to a new first mortgage, if the resale occurs within the 5-year WISH retention period.

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

• Notice of Resale to Non-Income-Qualified Homebuyer Workbook (No Subsidy Assumption) (.xls)

Property Foreclosure
Members may be required to return WISH subsidies to the Bank as a result of property foreclosure that occurs within the 5-year WISH retention period.
Generally, the obligation to repay WISH subsidy to the Bank shall terminate after any foreclosure. However, the member must notify the Bank of a foreclosure event occurring within the 5-year WISH retention period.

• Notice of Foreclosure Workbook (.xls)

A printed copy of this worksheet must be provided at the time of notification to the Bank of subsidy repayment.
 
Notification to Bank and Funds Wire Transfer
All repayments to the 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 WISH-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: [WISH Project #]
 
The WISH project number must be included in all correspondence and in wire instructions to ensure that remitted funds are tracked appropriately.
 


© 2000-2008 Federal Home Loan Bank of San Francisco