To All Members and Project Sponsors:
We have revised our Affordable Housing Program (AHP) Implementation Plan. The following changes are effective immediately:
An exception to the maximum subsidy a member may apply for in a single competitive round is explained in a new footnote to that section:
“If a member sponsoring an AHP application fails during the competitive round, prior to approval of the application for subsidy, the Bank will not approve the application unless a substitute member is found to sponsor the project. Without a member to sponsor the application, the application is ineligible. If a successor member is found, the successor member’s maximum limit in the round will be raised to include the subsidy requested in each of the failed members’ application(s) assumed by the successor member, not to exceed $6.5 million per failed member.”
This exception will be allowed beginning with Round A of the 2010 AHP.
Shortened to 30 days the grace period that is allowed between a member’s receipt of subsidy from the Bank and the member’s disbursement of that subsidy to the sponsor or the homebuyer. Formerly, the grace periods were 90 days for rental projects and 180 days for owner-occupied projects.
In order to allow members to make adjustments to their AHP internal policies and procedures, the revised grace period for subsidy disbursement requests will be effective as of May 1, 2010.
The revised Implementation Plan is posted on the Bank’s website at fhlbsf.com. If you have any questions about the AHP or these changes, please email Community Investment or call (415) 616-2542.
James E. Yacenda
Vice President and Community Investment Officer