Projects awarded AHP subsidies must be completed within four years following the award of subsidy. A project is defined as complete if AHP subsidy is fully disbursed and documentation of habitability has been issued (rental projects) or all homebuyer mortgage loans are closed (owner-occupied projects). 

All projects that are not complete are subject to a AHP Semiannual Survey to determine the feasibility of the project for continued disbursement. Project sponsors and members must provide evidence that the project is making "reasonable progress" toward completion. Subsidies for rental or owner-occupied projects for which the Bank does not receive completed AHP Semiannual Surveys or does not demonstrate making "reasonable progress" are subject to cancellation.

For all projects not complete on or about April 1 and October 1, the Bank sends an email (one email per project) informing project owners/sponsors that the survey is available online and ready to complete.

Upon notification of project completion, the Bank requests the initial monitoring (IM) documentation from the project sponsor. As part of the monitoring, the Bank will request documentation to verify Promotion of Empowerment and Community Stability commitments made in the AHP application or as a result of approved project modifications. Guidelines for Empowerment and Community Stability documentation are described in the Acceptable Forms of Verification For Promotion of Empowerment and Acceptable Forms of Verification for Community Stability. In addition, the Bank requests the AHP retention documents, first mortgage notes, other financing documents, as applicable (downpayment assistance, second and third loans, etc.), and income qualification documents (please refer to the AHP Household Income Qualification Workbook) for a sample of households. Requested documents must be submitted via a secure portal hosted by Blackberry Workspace.

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. As part of the monitoring, the Bank will request documentation to verify Promotion of Empowerment and Community Stability commitments made in the AHP application or as a result of approved project modifications. Guidelines for Empowerment and Community Stability documentation are described in the Acceptable Forms of Verification For Promotion of Empowerment and Acceptable Forms of Verification For Community Stability. In addition, the Bank requests income qualification (please refer to the AHP Household Income Qualification Workbook) and current rent documents for a sample of households. Requested documents must be submitted via a secure portal hosted by Blackberry Workspace.

The retention period for rental projects awarded an 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 per a risk-based sampling plan. As part of the monitoring, the Bank requests income qualification documents (please refer to the AHP Household Income Qualification Workbook) and current rent documents for a sample of households.

For all completed non-tax credit rental projects, 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.

The Bank requires that each AHP-assisted unit be income-qualified according to AHP Income Qualification Guidelines and proper third party income documentation be provided according to the Acceptable Forms of Verification for Household Income Qualification. All guidelines and required forms are provided in the AHP Household Income Qualification Workbook, 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.

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 Regulation. To help Members and sponsors meet this requirement, the Bank has prepared sample retention documents with instructions for rental projects and owner-occupied projects.

The Bank will consider requests for project modifications in accordance with the requirements of Section 1291.7 of the AHP Regulations (in Title 12, Part 1291 of the Code of Federal Regulations) and the Bank’s project modification procedures. The Bank requires that project sponsors/owners and Bank members report to the Bank any material changes in an approved project. A "material change" is any change that could affect the original scoring described in the Project Evaluation Form (Exhibit A of the project’s Direct Subsidy Agreement), based on the Bank’s scoring guidelines for the funding period in which the project was originally scored and approved. Modifications may also be requested for projects with previously approved modifications.

The Bank may, at its discretion, approve a modification to the terms of the approved application provided that:

• the project continues to meet the minimum AHP eligibility requirements;
• the project, reflective of the changes, continues to score high enough to have been approved in the AHP competitive round in which it was originally scored and approved; and,
• there is good cause for the modification.

Sponsors/owners and members must complete the Award Modification form if requesting modifications to the original terms approved in the AHP award, as outlined in Exhibit A: Project Evaluation Form, of the project’s original Direct Subsidy Agreement.

Section I: Basic Information Modifications

Complete this section of the AHP Award Modification form if there is a change to basic project information including project name, location, sponsor, or member. Provide an explanation of the request. If a proposed change impacts a project’s scoring element, complete Section II.
 
All sponsoring parties must sign the Award Modification form in cases of a sponsorship change. A new AHP Direct Subsidy Agreement Owner-Occupied Project or AHP Direct Subsidy Agreement Rental Project must also be executed and submitted by the assuming member and sponsor.

Section II: Scoring Element Modifications

Complete this section of the Award Modification form if the project requires a change to any scoring elements committed to by the project sponsor or member at the time of the AHP award. These include changes to project features such as income targeting, number of units, unit reservations for homeless, empowering services, or special needs populations. In addition, an updated AHP Rental Financial Workbook or AHP Owner-Occupied Financial Workbook for the project must also be submitted.

Please note that changes to one scoring element may impact another scoring element.

Modification requests must be submitted via a secure portal hosted by Blackberry Workspace.

For all rental and owner-occupied projects, repayment is generally required when:

• 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
• there is a reduction in the project financing gap resulting from lower than anticipated project development costs or increases in financing sources.
• there is a reduction in the number of AHP-assisted units.
• the Bank’s compliance monitoring review determines project’s non-compliance or failure to demonstrate the need for subsidy.

For owner-occupied projects, circumstances requiring repayment also include:

• 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.

All repayments must be remitted to the Bank via wire transfer, according to the Bank’s wire transfer and notification instructions for AHP-related remittances, and include our Notice of Resale to Non-Income-Qualified Homebuyer Workbook.

Note: The pro rata repayment amount will be based on the amount of time remaining the AHP retention period (based on the loan closing date). To calculate your subsidy repayment according to the Bank’s methodology, use our Notice of Resale or Refinance with Subsidy Repayment Workbook. A completed and printed copy of this workbook must be provided at the time of notification to the Bank of subsidy repayment.

• Wire Transfer and Notification Instructions 

Repayment is not required in the event that an AHP-assisted homebuyer refinances and subordinates the AHP subsidy to a new first mortgage note or in the event of foreclosure. However, the member must notify the Bank of the subsidy assumption or foreclosure for owner-occupied or rental projects using our AHP Notice of Finance with Subordination workbook.

Assumption

Members must notify the Bank in the event that the AHP-assisted homebuyer refinances and subordinates the AHP subsidy to a new first mortgage note.

A completed and printed copy of the AHP Notice of Refinance with Subordination Workbook must be provided at the time of notification to the Bank of subsidy assumption. Members must provide the Bank with an executed assumption or subordination agreements securing the unused portion of the AHP subsidy for the unit.

Foreclosure

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.

To notify the Bank of a foreclosure event, use our AHP Notice of Foreclosure Workbook. A completed and printed copy of this workbook must be provided at the time of notification to the Bank.