Application Notes:

Applications will be accepted beginning on April 2, 2024, and must be submitted by May 1, 2024.

Applications must be submitted online at fhlbmembers.b2clogin.com.

The contents of the application will become available upon initiation of the online application process.

Applications will be evaluated according to the following criteria:

• Use of donated or conveyed government-owned or other properties (5 points)
• Applicant type (5 points)
• Income groups targeted (20 points)
• Underserved communities and populations (15 points)
• Creating economic opportunity (5 points)
• Community stability, including affordable housing preservation (15 points)
• Bank district priorities (35 points)

Refer to the NOFA and Guide files, as well as the Workbook folder, for additional application information.

Match Notes:

There are no stated matching requirements for this program; however, projects must demonstrate need for the subsidy requested. A project's need is defined as the difference between the project's sources of funds, excluding the subsidy to be requested, and uses of funds. A project's sources of funds must include:

• Any cash contributions by the project sponsor
• Any cash contributions from sources other than the project sponsor
• Estimates of any funds that the project sponsor intends to obtain from other sources, but which have not yet been committed to the project
• Estimates of the market value of any in-kind donations and volunteer professional labor or services committed to the project, excluding the value of sweat equity

For homeownership projects in which the project sponsor extends permanent financing to the homebuyer, the project sponsor’s cash contribution must include the present value of any payments the project sponsor is to receive from the homebuyer, which will include any cash down payment from the homebuyer, plus the present value of any purchase note the project sponsor holds on the unit.

Funding Notes:

An unspecified amount of funding is available to support subsidies of up to $2 million per project and $80,000 per eligible unit through this program.

Subsidies may be provided as amortizing subsidized advance, or loans, with terms ranging from 10 years to 20 years and an amortization of 30 years.

Some or all of the awarded subsidy must be likely to be drawn down or used by the project to procure other financing commitments within 12 months of the application approval date. In general, projects must be completed within four years after the application approval date; however, projects involving Native American project sponsors or located on Native American land may have an extended project period of up to six years. Project completion extension requests may be considered and must be approved by the funding agency's board of directors.

Additional consideration will be given to projects proposing the least amount of subsidy funds per targeted unit, as detailed on page 36 of the NOFA file.

The purchase price of property or services sold to the project by a member institution providing a subsidy to the project, or upon which a member institution holds a mortgage or lien, may not exceed the market value of such property or services as of the date the purchase price for the property or services was agreed upon.

For owner-occupied projects involving new construction in which the project sponsor is also the developer or contractor of the project, construction costs may not exceed Marshall and Swift's building cost data by more than 5 percent.

For owner-occupied projects involving rehabilitation in which the project sponsor is also the developer or contractor of the project and the total project cost per home exceeds $10,000, rehabilitation costs may not exceed Marshall and Swift's building cost data by more than 5 percent.

Up to $500 of homebuyer counseling costs may be paid with awarded funds if the costs are not paid by any other source and the homebuyer receiving the cost assistance purchases an AHP- or Homebuyer Equity Leverage Partnership Program (HELP)-assisted unit.

Refer to pages 10-11 of the NOFA file for funding limitations that must be met in order for projects to meet minimum feasibility requirements.

In general, funds may not be used for prepayment fees imposed by the funding agency on a member institution in connection with the prepayment of a subsidized advance, with the exception of the situations detailed on page 5 of the NOFA file.

Funds may not be used for:

• Cancellation fees and penalties imposed by the funding agency on a member institution for a subsidized advance commitment that is cancelled
• Processing fees charged by member institutions for providing direct subsidies to a project
• Capitalized reserves
• Periodic deposits to reserve accounts
• Operating expenses
• Supportive services expenses
• Investment for purposes of earning income from awarded funds

For FY 2024, a total of $78.9 million was distributed via 41 awards through this program. For FY 2023, a total of $28.4 million was distributed via 43 awards. For FY 2022, a total of $17.2 million was distributed via 26 awards. Refer to the Award file for details.

December 6, 2024
Information regarding awards through this program has been released and appended to the Award file. A sample of award recipients has been added to the Eligibility section, and a brief summary of the awards has been added to the Financial section.