FHLBC - Community First

2021 Affordable Housing Program Announced

The FHLBank Chicago’s Board of Directors recently approved the 2021 Affordable Housing Program (AHP) Implementation Plan (Plan). The Plan outlines requirements and guidelines applicable to the Downpayment Plus programs and the AHP General Fund.

Significant changes in the 2021 Plan are summarized below. Please review the 2021 Plan, which includes a redlined version, for all changes.

Downpayment Plus Programs

Homebuyer education and counseling may be provided by an organization that has adopted the education and counseling components of the National Industry Standards for Homeownership Education and Counseling, or by a HUD Approved Counseling Agency, or an online platform approved by the FHLBank Chicago.

Competitive AHP

The 2021 Plan has been updated to reflect all requirements of the Final AHP Rule. All references to the FHLBank Chicago’s “Competitive Program” will now be referred to as the “General Fund.” The Final AHP Rule provides that a Federal Home Loan Bank may establish in its discretion, up to three Targeted Funds to address specified affordable housing needs in its district, in addition to its General Fund. However, the FHLBank Chicago will not establish a Targeted Fund in 2021.
If an AHP application involves the purchase, rehabilitation, or demolition of a property that is occupied by existing households and includes displacement, then a Relocation Plan is required at application.
Homebuyer education and counseling may be provided by an organization that has adopted the education and counseling components of the National Industry Standards for Homeownership Education and Counseling, or by a HUD Approved Counseling Agency, or an online platform approved by the FHLBank Chicago.
For rental projects utilizing the 9% Federal Low Income Housing Tax Credit (LIHTC), the member/sponsor must provide evidence of the LIHTC award and a letter of interest or intent for the LIHTC equity. If these items are not available as of the June 11 application deadline, then they must be submitted by August 1, 2021.
Changes have been made to the LIHTC pricing, operating cost per unit, and adjusted development cost per unit feasibility guidelines.
Scoring guidelines have been updated to reflect the framework established in the Final AHP Rule.
The Promotion of Empowerment scoring category is removed for 2021. These five points have been redistributed to other existing point categories.
The Mixed Income scoring category is renamed “Creating Economic Opportunity Through Residential Economic Diversity.”

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Federal Home Loan Bank of Chicago

200 East Randolph Drive
Chicago, IL 60601
www.fhlbc.com

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