Affordable Housing Program Tips and Tricks

The Affordable Housing Program (AHP) is designed to help fill the gap in developing affordable housing for rental and ownership projects. It is a competitive process and being awarded funds depends on several factors, such as how well the project scores, funds available, how many applications are received and the scores of the applications in each offering. Projects must also meet threshold requirements and underwriting guidelines. That being said, there are some practices that can help boost your project’s chance of being awarded.

• Download and read the Implementation Plan (IP) from our website. The IP is your best source for all information about the Affordable Housing Program. You can see the details on scoring, project requirements and HCI guidelines within.
• Know your goal before starting an application. Prior to starting the application, affordable housing partners, commonly referred to as sponsors by the FHLB, should know the number of units they are proposing to create, intended income population targeted, development and operating costs involved, and the income sources for the project. This will make completing the application easier and faster.
• Do not leave points on the table, but do not over commit. This requires understanding the scoring criteria. Tailor the project to meet maximum points in the scoring system while building in flexibility. This comes in handy especially for for income targeting, special needs, homeless households and AHP subsidy per unit scores. For example, a 20-unit project can receive the maximum score in the special needs category by serving 17 special needs households. Committing all 20 units will not increase your score in that category, pledging 17 units will allow the max number of points while allowing some flexibility In the unit make-up.
• Submit more than one application. This is especially true for ownership sponsors wishing to serve a large amount of households. Break up the households into achievable chunks or households based on service areas. For example, one project may focus on owner-occupied rehabilitation units and another on new construction.
• Get your member financial institution involved. An FHLB member’s full participation can earn your project 10 points. Speak with your member early to determine what they can provide to your project.
• Do more with less. Several categories in the AHP scoring system reward projects with a higher score when they use less AHP subsidy per unit or as a percentage of total project costs. If you can create more units or use less AHP subsidy, you’ll increase your chances for receiving an award of funds.
• Start your application early. The application can take several days to complete, if you have everything ready to be inputted. You will want to give yourself plenty of time to review or change information. Remember that the application system (OASYS) acts like a smart-application in that the application reacts to your input. If you change an answer, then the questions presented to you may change as well. Don't get caught entering data the day the application is due.
• Submit the right documents. Within OASYS, specific documents are requested based off of the information inputted. These are called the “Required Documents.” Be sure to upload information meeting the requirements the FHLB specifies in the application. Missing, incomplete or contradictory documents (and ones that contradict information stated in the application) may lead to a loss of points or the application being rejected. A listing of possible Required Documents can be found in OASYS under Application Tools.
• Get educated. Attend one of the free AHP Workshops being offered in Tennessee, Ohio and Kentucky to learn more about the program and to ask questions you may have. The FHLB Cincinnati also offers education material on our website under AHP Application Information. Registering for OASYS will also allow you to stay informed of upcoming news and important information regarding FHLB’s programs.