Application Notes:

Mandatory notifications of intent to apply must be received by June 5, 2025.

The notification of intent to apply submission information is unavailable.

According to the program officer, the notification of intent to apply is not yet available; however, it is expected to be posted online at www.fhlbi.com/services/community-programs/affordable-housing-program sometime in early to mid April 2025.

Applications must be received by June 26, 2025.

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

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

Optional office hour sessions for this program are scheduled as follows:

March 11, 2025
2:00 p.m. - 3:00 p.m. ET
Registration: fhlbi.zoom.us

March 25, 2025
2:00 p.m. - 3:00 p.m. ET
Registration: fhlbi.zoom.us

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 and Updates 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.

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 22-23 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 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.

Awards will be announced on November 21, 2025.

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, or December 1, 2026. 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. Subsidies must be completely disbursed within 36 months of the date of approval of the application, or December 1, 2028.

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 2024, 42 awards were distributed through this program. For FY 2023, 32 awards were distributed. For FY 2022, 17 awards ranging from $80,000 to $500,000 were distributed. Refer to the Award file for details.

March 5, 2025
Information regarding optional office hour sessions scheduled for this program has been released and attached as the OfficeHours file. The Application section has been updated accordingly.