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Notice No. 0008 | August 6, 2009

AHP: Rental Project Subsidy Disbursement Request Prior to Start of Construction

To All of our AHP Recipients:

The FHLBank of San Francisco (the Bank) permits members and sponsors to request disbursement of AHP subsidy before the start of construction of their rental projects, and use the subsidy to leverage the sponsor’s efforts to secure other financing sources to the project. In considering whether to disburse the AHP subsidy, the Bank will consider the project’s status of financing commitments, site control, and ability to begin construction to comprehensively assess the project’s overall feasibility, level of progress, and capacity to be completed within the Bank’s 4-year time limits policy. The Bank reserves the right to deny the request in the course of the disbursement review incorporating these considerations.

The Bank reminds sponsors and members of the risk in requesting disbursement prior to the start of construction.  As outlined in the Bank’s December 19, 2008, Community Investment Notice # 0007, projects that become infeasible after disbursement are subject to cancellation and subsidy recapture by the Bank. Sponsors and members are advised to carefully weigh this risk in evaluating the project’s status when submitting a request for subsidy disbursement.   

Please call me at (415) 616-2753 if you have questions about this notice or the AHP.



Emmanuel R. Ungson
Assistant Vice President, Community Investment Department, Research and Analysis