Homeownership Subsidy Repayments: Third Party Documentation Requirements for Household Investments and Capital Improvements
December 4, 2019
When a household that has received a direct subsidy through the competitive AHP (owner-occupied projects) or the AHP set-aside homeownership programs (WISH and IDEA) is required to repay a portion of the AHP subsidy to the Bank based on the net proceeds calculation at the time of sale or refinancing of their home, they may be required to provide, within a reasonable amount of time before or after the new loan closing, third party documentation of household investments or capital improvements made by the homebuyer.
The Bank has added clarifying language to the Owner-Occupied Unit Notice and Repayment Workbook regarding this requirement.
We have revised the retention agreements for the AHP, WISH, and IDEA program templates to include definitions for “household investment” and “net proceeds.” The revised templates emphasize that the homeowner should retain documentation related to household investments or capital improvements, since they will be needed if the unit is sold or refinanced.
If you have any questions, please email communityinvestment@fhlbsf.com or call 415-616-2542.