Application Notes:

Mandatory notifications of intent to apply must be received by June 6, 2024.

The program officer stated that additional information regarding the mandatory notifications of intent to apply, including information regarding the submission method, will be made available at a later date and will be shared with potential applicants during the program workshops.

Notifications of intent to apply must be emailed to the appropriate address provided in the Contact section.

Notifications of intent to apply must include:

• Sponsor contact information
• Co-sponsor/consultant contact information (if applicable)
• Member financial institution contact information
• Project information
• Technical review request

Applications must be received by June 27, 2024.

Applications must be submitted online at sso.fhlbi.com.

Applications must include:

• Application checklist
• Basic information
• Development team
• Project targeting
• Building details
• Project schedule
• Project finances
• Scoring criteria
• Attachments
• Federal Housing Finance Agency (FHFA) questionnaire

Optional workshops for this program are scheduled as follows:

Members-Only Workshop:
February 15, 2024
1:00 p.m. - 2:30 p.m.
Registration: fhlbi.zoom.us

General Workshop:
February 29, 2024
1:00 p.m. - 2:00 p.m. ET

Application Training: Rental Projects:
May 7, 2024
10:00 a.m. - noon
Registration: fhlbi.zoom.us

Application Training: Homeownership Projects:
May 9, 2024
10:00 a.m. - noon
Registration: fhlbi.zoom.us

Additional information regarding accessing the February 29, 2024, workshop will be made available online at www.fhlbi.com/resources.

Applications will be evaluated according to the following criteria:

• Use of donated/discounted, government-owned, or other properties (5 points)
• Sponsorship by a qualified nonprofit organization or government entity (7 points)
• Targeting (20 points)
• Underserved communities and populations (18 points)
• Creating economic opportunity (5 points)
• Community stability (7 points)
• District priority (38 points)

Refer to the NOFA, Guide, Workshops, NOI, and AppChecklist files for additional application information.

Match Notes:

There are no specific matching requirements for this program; however, a project's estimated sources of funds must equal its estimated uses of funds, as reflected in the project's development budget. Awards will support subsidies of up to $1 million or up to 75 percent of the project's total housing development costs, whichever is less.

In the case of homeownership projects where the sponsor extends permanent financing to the homebuyer, the sponsor's cash contribution must include the required cash down payment from the buyer, plus the present value of any purchase note the sponsor holds on the unit. If the note carries a market interest rate commensurate with the credit quality of the buyer, the present value of the note equals the face value of the note. If the note carries an interest rate below the market rate, the present value of the note will be determined using the market rate to discount the cash flows.

Points will be awarded in the application evaluation process based on the extent members financially participate in the project, as detailed on pages 25-26 of the NOFA file.

Sources and uses of funds may not include the estimated market value of in-kind donations, voluntary professional labor or services, or sweat equity from project development.

Funding Notes:

An unspecified amount of funding is available to support subsidies of up to $1 million or up to 75 percent of total housing development costs, whichever is less, per project; and up to $100,000 per unit through this program.

During the application evaluation process, additional points will be awarded to projects that request lower subsidies per unit. The most points will be awarded to projects at or below $12,500 subsidy per unit. No points will be awarded to projects at $37,5000 or more subsidy per unit. 

Refer to pages 34-36 of the NOFA file for information regarding the award disbursement process and draw requirements.

Applications will be approved by the funding agency board on November 22, 2024.

Subsidies should be drawn for at least a portion of the project's eligible costs within 12 months of the date of approval of the application, but no later than December 1, 2025. One extension of up to 12 months may be granted on a case-by-case basis and for good cause, at the funding agency's discretion, if sufficient evidence is provided. Subsidies must be completely disbursed within 36 months of the date of approval of the application, and no later than December 1, 2027.

No more than 20 percent of the subsidy may be drawn for soft costs such as developer fees, consultant fees, architecture, engineering, building permits, surveys, and construction loan interest.

In general, contingency costs are expected to be between 5 percent and 10 percent of the construction budget, unless the applicant can demonstrate that costs are unlikely to change from those proposed.

Funds may not be used for:

• Subsidy reuse in the same project
• Processing fees charged by member institutions for providing direct subsidies to a project
• Certain prepayment and cancellation fees and penalties related to subsidized advances
• Reserves and certain expenses, including capitalized reserves, periodic deposits to reserve accounts, operating expenses, or supportive service expenses
• Counseling costs, unless such costs are incurred in connection with counseling of homebuyers who actually purchase an assisted unit, and the counseling costs that have not been covered by another funding source, including the member institution

For FY 2023, 32 awards were distributed through this program. For FY 2022, 17 awards ranging from $80,000 to $500,000 were distributed. For FY 2021, a total of $6.9 million was distributed via 16 awards ranging from $200,000 to $500,000. Refer to the Award file for details.

April 17, 2024
Information regarding optional workshops scheduled for this program has been released and attached as the Workshops2 file. The Application section has been updated accordingly.

April 11, 2024
The required notification of intent to apply form, including additional information regarding its submission process, has been released and attached as the NOI file. Additionally, a checklist of required application components, which must be submitted alongside applications, has been released and attached as the AppChecklist file. The Application and Contact sections have been updated accordingly.

January 25, 2024
The program officer stated that additional information regarding the mandatory notifications of intent to apply will be made available at a later date and will be shared with potential applicants during the program workshops. The Application and Contact sections have been updated accordingly.