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FEDERAL HOME LOAN BANK OF CINCINNATI

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					                 FEDERAL HOME LOAN BANK OF CINCINNATI
                  2010 Affordable Housing Program Implementation Plan

Background
The Affordable Housing Program is governed by regulations of the Federal Housing Finance
Agency (FHFA) at 12 CFR Part 1291, transferred to the FHFA from the Federal Housing
Finance Board (FHFB) by enactment of the Housing and Economic Recovery Act of 2008. The
most recent general amendments to the AHP regulations were adopted on September 13, 2006,
and were effective on January 1, 2007.
The FHFB adopted an Interim Final Rule on April 16, 2008, allowing AHP subsidy to be used
for refinancing mortgages under certain limited conditions. The FHFA adopted an another
Interim Final Rule, effective October 17, 2008, allowing AHP subsidy to be used in refinancing
mortgages under certain other circumstances. This Interim Final Rule also relocated the AHP
rule from part 951 of the FHFB regulations to part 1291 of the FHFA regulations, and renamed
the new part to “Federal Home Loan Banks' Affordable Housing Program.” The rule also
renumbered references within the rule to reflect its new part number. The FHFA adopted
another Interim Final Rule allowing AHP subsidy to be using in refinancing mortgages under
broader circumstances and revising the provisions relating to scoring under the Second District
Priority, effective August 4, 2009. This Implementation Plan is based on these most recent
amendments.
The AHP regulation requires each of the Federal Home Loan Banks to develop an
Implementation Plan (Plan) governing administration of the Affordable Housing Program
(AHP). This AHP Implementation Plan is based on the requirements of the most recent
amendments. The Housing and Community Investment Department of the Bank will administer
the AHP according to the Plan.
The AHP regulation requires the Board to appoint an Advisory Council and specifies the
composition, duties, and responsibilities of the Council. The Board has appointed a Council and
has adopted written policies governing the Council.
The AHP regulation requires that the Board of Directors adopt written policies on conflict of
interest covering Bank directors and employees and Advisory Council Members. The Board of
Directors has adopted such policies.
Each Bank’s Advisory Council is required to review the AHP Implementation Plan and make
recommendations to the Board of Directors, and the Board is required to adopt a written Plan.
The Plan addresses the following:
I.     Applicable median income standard or standards;
II.    Requirements for the competitive AHP;
III.   Requirements for the homeownership set-aside program Welcome Home (see
       Attachment H) and the Mortgage Refinancing Assistance Program (MRAP) (see
       Attachment I);
IV.    Monitoring requirements for the competitive and homeownership set-aside programs (see
       Attachment C); and


Revised 031810                     Page 1 of 11 pages
V.       Retention agreement requirements for projects and households under the competitive
         application program and under the homeownership set-aside Welcome Home (see
         Attachment G);
VI.      Time limits on use of AHP subsidies and procedures for verifying compliance upon
         disbursement;
VII.     Project feasibility guidelines (see Attachment F);
VIII.    Schedule for AHP funding periods;
IX.      District eligibility requirements;
X.       AHP scoring guidelines (see Attachment A);
XI.      Policies for transfer of projects (see Attachment B);
XII.     Policies for modification of projects (see Attachment D);
XIII.    Definitions (see Attachment E); and
XIV. Arbitrage

I.     Applicable Median Income Standards
       A. The Bank will use the adjusted median incomes (AMI) published annually by the
          Department of Housing and Urban Development (HUD), as adjusted for household size,
          as the standard for rental and homeownership projects under the AHP competitive
          program.
           1.    Since the HUD AMIs are usually not released until the first AHP offering
                 application has been opened to applicants, the Bank will use the 2009 HUD limits
                 issued for Multifamily Tax Subsidy Projects (MTSP) for the first offering. Any
                 references in this Plan to HUD AMIs are deemed to be references to MTSP limits,
                 if appropriate.
           2.    For the second AHP offering, the Bank will use the 2010 HUD limits issued for
                 Multifamily Tax Subsidy Projects (MTSP). Any references in this Plan to HUD
                 AMIs are deemed to be references to MTSP limits, if appropriate.
       B. The Bank will use the Mortgage Revenue Bond (MRB) income limits for first-time
          homebuyer programs established by state housing finance agencies, as adjusted for
          household size by the appropriate state housing finance agency, for the homeownership
          set-aside programs Welcome Home and Mortgage Refinancing Assistance Program.
          Income limits for the homeownership set-aside programs will be 80 percent of the
          applicable MRB limit.

II. Requirements for the Competitive AHP
       A. The Bank will accrue 10 percent of net earnings from the prior year to provide subsidy
          to approved AHP projects.
           1.    The Bank will set aside 35 percent of AHP funds accrued annually to fund its
                 homeownership set-aside programs, Welcome Home and its mortgage refinancing




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                 program, Mortgage Refinancing Assistance Program (MRAP). Any funds not used
                 in the Welcome Home program will be available for the MRAP.
         2.      All other funds accrued annually will be available to fund projects approved in the
                 competitive AHP.
         3.      The Bank will borrow no funds from the following year’s competitive AHP unless
                 the Board determines that it is prudent to do so to fund additional projects with
                 identical scores in the second competitive AHP offering.
         4.      All AHP funds recaptured or deobligated each year shall be made available to
                 eligible applicants in the next competitive AHP offering.
    B. Uses of AHP subsidy.
         1.      AHP subsidy may only be requested and used for projects to provide rental and
                 ownership housing.
                 a.   Ownership properties are those in which there is a fee simple interest in the
                      property to be used as a primary residence. Owner-occupied units may include
                      single-family detached units, condominiums, townhomes, duplexes, triplexes,
                      or quadplexes. Ownership properties also include those in which there is a true
                      ownership through a cooperative. An ownership cooperative is one in which
                      cooperative members own a share in a corporation that owns or controls the
                      building(s) and/or property in which they live. Each shareholder is entitled to
                      occupy a specific unit and has a vote in the corporation. Every month,
                      shareholders pay an amount that covers their proportionate share of the
                      expense of operating the entire cooperative, which typically includes
                      underlying mortgage payments, property taxes, management, maintenance,
                      insurance, utilities, and contributions to reserve funds. Such cooperatives may
                      be market-rate or limited equity cooperatives.
                 b.   Rental properties include any housing with units for rent or lease, including
                      shelters, units for lease-purchase, or units owned in a cooperative not
                      considered ownership cooperatives as described above.
                 c.   AHP funds may not be used in projects which require a Certificate of Need
                      from the state agency regulating health care facilities or which require
                      licensure as an Intermediate Care Facility (ICF) or as an ICF/MR facility.
                 d.   AHP funds may not be used in owner-occupied rehab projects in which
                      average rehab costs are expected to be less than $5,000 per unit.
         2.      AHP funds can be used only for costs related to acquisition, rehabilitation, new
                 construction, refinancing, or necessary soft costs related to the project.
                 a.   AHP subsidy may not be requested for and will not be awarded to projects that
                      are complete at the time of AHP award;
                 b.   AHP subsidy may not be used to refinance existing debt or in projects
                      involving refinancing of any existing debt, except through the MRAP;
                 c.   AHP subsidy may not be used to pay prepayment fees;




Revised 031810                               Page 3 of 11 pages
                 d.   Repaid AHP subsidy may not be reused in the same project; and
                 e.   AHP may not be used for capitalized reserves.
         3.      AHP projects must comply with any applicable federal and state laws and local
                 ordinances on fair housing and accessibility, including, but not limited to, the Fair
                 Housing Act, the Rehabilitation Act, the Americans with Disabilities Act, and the
                 Architectural Barriers Act of 1969.
         4.      AHP projects must comply with applicable federal, state and local anti-predatory
                 lending laws, regulations and orders designed to prevent or regulate abusive and
                 deceptive lending practices and loan terms (collectively, “Anti-Predatory Lending
                 Laws”). For example, Anti-Predatory Lending Laws may prohibit or limit certain
                 practices and characteristics, including, but not limited to the following:
                 a.   Requiring the borrower to obtain prepaid, single-premium credit life, credit
                      disability, credit unemployment, or other similar credit insurance;
                 b.   Requiring mandatory arbitration provisions with respect to dispute resolution
                      in the loan document; or
                 c.   Charging prepayment penalties for the payoff of the loan beyond the early
                      years of such loan.
         5.      Any project including a loan that does not comply with all applicable Anti-
                 Predatory Lending Laws will be ineligible for AHP assistance.
         6.      Members, Sponsors, and owners are responsible for avoiding all unlawful practices
                 and terms prohibited by applicable Anti-Predatory Lending Laws, regardless of
                 whether they originate or purchase the loan in connection with an AHP project.
         7.      The Bank will not provide AHP assistance to any project in which a loan exceeds
                 the annual percentage rate, or points and fees thresholds of the Home Ownership
                 and Equity Protection Act of 1994 and its implementing regulations (Federal
                 Reserve Board Regulation Z).
         8.      Taking into consideration the geographic location of the project, development
                 conditions, and other non-financial household or project characteristics, a project’s
                 costs, as reflected in the project’s development budget, must be determined by the
                 Bank to be “reasonable,” in accordance with the Bank’s project cost guidelines (see
                 Attachment F).
         9.      AHP subsidy may be requested only through the AHP on-line application,
                 incorporated herein by reference:
                 a.   An application may be submitted only by a Member;
                 b.   An application must be submitted by the deadline stated in Part VIII; and
                 c.   Additional written documentation and certifications are also required and must
                      be received by the Bank by the deadline stated in Part VIII.
         10. Funding from another FHLBank.
                 a.   An award of AHP funds from any FHLBank requires that the project's
                      anticipated sources and uses of funds match; that is, that the project's



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                      anticipated costs have been fully funded. If a project has received an award of
                      AHP funds from the FHLBank of Cincinnati or from any other FHLBank, that
                      should mean that there is no additional need for subsidy and that the project is
                      not eligible for any additional AHP subsidy from the FHLBank of Cincinnati.
                      If that is not the case, the Sponsor should contact the FHLBank of Cincinnati
                      to determine whether the project is eligible for additional AHP subsidy. The
                      Sponsor will need to explain why the project is not fully funded and why
                      additional funds are being requested.
                 b.   If the Project has been submitted (or will be submitted) to another Federal
                      Home Loan Bank for funds in their current AHP offering, the Sponsor will be
                      required to identify to which other FHLBank the application has been
                      submitted. The FHLBank of Cincinnati will not fund part of a project if
                      another part of the funding for the project is to come from another FHLBank.
                      The intent is that all AHP funding come from a single FHLBank. If the
                      FHLBank of Cincinnati makes an AHP award for the project, the application to
                      the other FHLBank must be withdrawn immediately. If the other FHLBank
                      makes an AHP award for the project, the application to the FHLBank of
                      Cincinnati must be withdrawn immediately.
         11. AHP subsidy may be requested and received as direct subsidy (grant).
                 a.   Any funds requested or received as a direct grant must be made available in
                      full to the project for the purposes intended.
                 b.   If the subsidy is requested as a grant and there is also permanent debt on the
                      project, the Member must provide the permanent debt (as evidenced by a note
                      and mortgage in the Member’s name), except:
                      1) Ownership projects relying solely on USDA Rural Housing Services for
                         permanent financing;
                      2) Projects relying solely on HUD for permanent financing for special project
                         types, such as 202 or 811, or first mortgages provided with HOME or
                         other government funds without any other permanent debt;
                      3) Ownership projects in which the Sponsor originates and closes first
                         mortgage financing in the Sponsor’s name;
                      4) In projects in which there are multiple sources of permanent financing, the
                         Member is not required to provide all of the permanent financing;
                      5) In a project using permanent financing derived from a bond transaction,
                         either taxable or tax-exempt, in which the Member commits to purchase at
                         least 20 percent of the bonds, as evidenced by a bond purchase agreement
                         or similar commitment; and
                      6) Other projects with similar characteristics or funding requirements or
                         limitations, but only with the approval of the Bank prior to submission of
                         the application.
         12. The project must demonstrate a need for AHP subsidy.




Revised 031810                               Page 5 of 11 pages
                 Sources and uses of funds, including the value of AHP subsidy requested for the
                 project, must match at the time of applications submission and at the time of any
                 disbursement.
                 a)   Sources of funds must include the value of donated property, donated
                      professional labor (but not volunteer labor or sweat equity), and donated
                      materials.
                 b) A Sponsor providing a zero interest or other deeply discounted permanent first
                    mortgage loan must include the net present value of the loan (based on an
                    assumed market rate determined by the Bank) as a cash contribution from the
                    Sponsor.
                      1) The application will calculate the net present value based on the
                         information provided in the application and the amount will be shown as a
                         cash contribution from the Sponsor in Attachment D of the AHP
                         application.
                      2) The FLHBank will determine at least annually, and more frequently if
                         warranted, the assumed market rate of the loan by adding a risk
                         adjustment for lower income or lower credit quality borrowers generally
                         served by AHP projects to an estimate of the current market rate for 30-
                         year fixed rate mortgages. The assumed rate will be used in the AHP
                         competitive applications and for determining the net present value of any
                         discounted first mortgage loan in any disbursements for closings occurring
                         on or after adoption of the rate.
         13. Retention (see also Attachment G for specific retention requirements).
                 a.   All housing projects and units receiving AHP subsidy shall be subject to
                      retention agreements providing that the Bank will be given notice of any sale,
                      change of ownership, refinancing, or foreclosure within the “retention period”
                      and that some or all of the AHP subsidy may be subject to repayment or
                      recapture.
                      1) The “retention period” for an owner-occupied unit means:
                          a)   Five (5) years from closing; or
                          b) In the case of rehabilitation of a unit currently occupied by the owner
                             where there is no closing, five (5) years from the date that such
                             rehabilitation is complete.
                          c)   The “retention period” for a rental project means fifteen (15) years
                               from the date of project completion.
                      2) The retention language must be inserted into the Warranty Deed or
                         recorded as a Restrictive Covenant to the Warranty Deed. If it is attached
                         to the Warranty Deed as an addendum or attachment, the Warranty Deed
                         must reference the addendum or attachment (see Attachment G).
         14. All projects must demonstrate to the satisfaction of the Bank that development
             costs are “reasonable” (see Attachment F).



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         15. Rental projects must demonstrate to the satisfaction of the Bank that operating
             costs are “reasonable” (see Attachment F).
         16. The Bank encourages projects which meet energy efficiency standards, especially
             new and substantial rehabilitation in residential buildings up to three stories
             designed to meet the standards for ENERGY STAR Qualified New Homes and
             complying with National Home Energy Rating System guidelines. New single-
             family homes, low-rise multifamily homes, manufactured homes, systems-built
             homes, and existing homes retrofitted for energy efficiency are eligible for such
             ENERGY STAR certification (see www.energystar.gov). In the alternative, the
             Bank also encourages projects which will be certified under the LEED for Homes
             program. The following project types are eligible for LEED for Homes
             certification: single-family attached or detached, low-rise and mid-rise multifamily,
             manufactured and modular housing, and gut rehab (see
             www.usgbc.org/leed/homes)

III. Requirements for the Homeownership Set-aside Program (Welcome Home) (see
     Attachment H) and the Mortgage Refinancing Assistance Program (MRAP) (see
     Attachment I)

IV. Monitoring (see Attachment C)

V. Retention Agreement Requirements (see Attachment G)

VI. Time Limits on Use of AHP Subsidies and Procedures for Verifying Compliance upon
    Disbursement
    A. The Bank will disburse AHP subsidies only to institutions that are Members of the
       FHLBank of Cincinnati at the time they request a draw down of subsidy.
         1.      AHP funds will be disbursed only after all agreements have been fully executed by
                 the parties.
         2.      AHP funds will be disbursed only after all funding sources have been committed.
    B. If an institution with an approved application for AHP subsidy loses its membership in
       the FHLBank of Cincinnati:
         1.      The FHLBank of Cincinnati may disburse AHP subsidies to a Member of the
                 FHLBank of Cincinnati to which the institution has transferred its obligations under
                 the approved application; or
         2.      The FHLBank of Cincinnati may disburse AHP grant subsidies through another
                 FHLBank to a Member of that FHLBank that has assumed the institution's
                 obligations under the approved application. (See Attachment B for a detailed
                 description of the AHP Member Transfer Policy.)
    C. Disbursements of homeownership set-aside (Welcome Home) funds (see also
       Attachment H):




Revised 031810                              Page 7 of 11 pages
         1.      If reserved Welcome Home funds are not requested by December 1, the Bank shall
                 cancel the reservation and make the funds available for other AHP-eligible projects.
                 The Bank may grant extensions for good cause.
         2.      Prior to disbursement of Welcome Home funds by the Bank to a Member, the
                 Member must certify that:
                 a)   The funds were provided to a household meeting Welcome Home eligibility
                      requirements;
                 b) Funds were used only for eligible purposes;
                 c)   The Member for whom funds were reserved provided the first mortgage
                      financing to the household;
                 d) All fees, points, and rates of interest and any other charges by the Member did
                    not exceed reasonable market rates for loans of similar maturity, terms, and
                    risk;
                 e)   The first mortgage loan does not violate any Anti-Predatory Lending Laws;
                 f)   The first mortgage loan did not exceed the annual percentage rate, or points
                      and fees thresholds of the Home Ownership and Equity Protection Act of 1994
                      and its implementing regulations (Federal Reserve Board Regulation Z).
                 g) Funds received for homebuyer counseling costs were provided according to the
                    requirements; and
                 h) No funds were provided as “cash back” to the borrower at closing.
         3.      The FLHBank will establish a maximum rate of the first mortgage loan in the
                 Welcome Home program by adding a risk adjustment for lower income or lower
                 credit quality borrowers generally served by AHP projects to an estimate of the
                 current market rate for 30-year fixed rate mortgages.
         4.      The calculated annual percentage rate (APR) shown on the Truth-in-Lending (TIL)
                 statement may not exceed the stated mortgage rate by more than 0.75 percent. For
                 loans insured or guaranteed by FHA, VA, RD or state housing finance agencies,
                 which require an up-front payment of insurance or guaranty fees, the calculated
                 APR shown on the Truth-in-Lending (TIL) statement may not exceed the stated
                 mortgage rate by more than 1.10 percent. At management’s discretion, these
                 limitations may be adjusted for good cause, including changes in market
                 conditions.
    D. Disbursements of competitive application funds.
         The Bank expects that subsidies approved under the Bank’s competitive application
         program will be drawn down within four years from the date of award. If such
         subsidies are not drawn down and used by eligible projects/households within four
         years from the date of award, the Bank shall cancel its approval of the application and
         make the funds available for other AHP-eligible projects.
         1) On a case by case basis, the Bank may grant extensions to the time limits.




Revised 031810                              Page 8 of 11 pages
         2) Extensions to commitment expirations will be reported to the Bank’s board of
            directors at its next scheduled meeting.
         3) Prior to disbursement of funds by the Bank to a Member, the Bank shall verify that
            the project meets the competitive application program eligibility requirements and
            all obligations committed to in the approved application.
         4) If the project is receiving a direct subsidy and there is also permanent debt on the
            project, it is assumed that the direct subsidy is being used to write down the
            principal amount of the permanent loan. In such cases, the Bank shall verify any
            increases or decreases in the amount of subsidy required to maintain a reasonably
            comparable debt service cost within the Bank’s Debt Coverage Ratio Guidelines
            for the permanent loan.
                 a)   If, at the time of final disbursement, the subsidy required decreases due to a
                      decrease in market interest rates, the Bank shall automatically reduce the
                      subsidy amount accordingly. The amounts of any reduced subsidy shall be
                      returned to the Bank’s AHP fund.
                 b) If, at the time of final disbursement, the subsidy amount required increases due
                    to an increase in market interest rates, the Bank shall automatically increase the
                    subsidy amount accordingly, but only if there is sufficient subsidy available
                    from any currently uncommitted or repaid AHP subsidies.
                 c)   If, at the time of final disbursement, the subsidy amount required increases due
                      to an increase in market interest rates, but there is not sufficient subsidy
                      available from any currently uncommitted or repaid AHP subsidies, the
                      increase in subsidy required may be included in the recommendations to the
                      Board as part of the next AHP offering. The Board may fund the increase in
                      subsidy required from the current year’s AHP accrual available prior to
                      funding any new projects.
E.       Disbursements of homeownership refinancing program (MRAP) funds (see also
         Attachment I):
         1.      If reserved MRAP are not requested by December 1, 2010, the Bank shall cancel
                 the reservation and make the funds available for other AHP-eligible projects
         2.      Prior to disbursement of MRAP funds by the Bank to a Member, the Member must
                 certify that:
                 a)   The funds were provided to a household meeting MRAP eligibility
                      requirements and the requirements of any eligible refinancing program;
                 b) Funds were used only for eligible purposes;
                 c)   The Member for whom funds were reserved provided the first mortgage
                      refinancing to the household;
                 d) All fees, points, and rates of interest and any other charges by the Member did
                    not exceed reasonable market rates for loans of similar maturity, terms, and
                    risk;
                 e)   The first mortgage loan did not violate any Anti-Predatory Lending Laws;



Revised 031810                               Page 9 of 11 pages
                 f)   The first mortgage loan did not exceed the annual percentage rate, or points
                      and fees thresholds of the Home Ownership and Equity Protection Act of 1994
                      and its implementing regulations (Federal Reserve Board Regulation Z); and
                 g) No funds were provided as “cash back” to the borrower at closing.
VII. Project Feasibility Guidelines (see Attachment F)

VIII. Schedule for Competitive AHP funding periods.
    The Bank shall accept applications from Members for AHP funding during two funding
    periods:
    A. First offering:
         1.      Applications must be submitted to the Bank by 5:00 p.m. (local time) on April 1,
                 2010. Applications may be submitted only electronically and the application closes
                 automatically on the date and time noted.
         2.      Other required written documents and certifications must be received by the Bank
                 by 5:00 p.m. (local time) on April 8, 2010. Documents must be submitted
                 according to the “Instructions for Submitting Required Documents” provided in the
                 application.
         3.      One-half of the amount of AHP subsidy accrued for the year, plus any amounts
                 recaptured or deobligated and available to the competitive AHP before May 1 shall
                 be available in the first offering.
         4.      Funding shall be approved by the Board of Directors at their regular meeting in
                 June 2010 or at such other date as determined by the Board.
    B. Second offering:
         1.      Applications must be submitted to the Bank by 5:00 p.m. (local time) on September
                 1, 2010. Applications may be submitted only electronically and the application
                 closes automatically at the time noted.
         2.      Other required written documents and certifications must be received by the Bank
                 by 5:00 p.m. (local time) on September 8, 2010.
         3.      All remaining AHP subsidy accrued but not committed in the first offering, plus
                 any additional amounts recaptured or deobligated and available to the competitive
                 AHP before October 1 shall be available in the second offering.
         4.      Funding shall be approved by the board of directors at their regular meeting in
                 November 2010 or at such other date as determined by the Board.
    C. Any additional amounts recaptured or deobligated and available to the competitive AHP
       on or after October 1 shall be available in the first offering of the next year.

IX. District eligibility requirements.

    The Bank designates the following district eligibility requirements:




Revised 031810                              Page 10 of 11 pages
    A. Each Member is eligible to receive up to 30 percent of the AHP subsidy available in a
       single competitive offering, or 15 percent of the total AHP subsidy available in each
       year’s competitive offerings. Any funding received in the homeownership set-asides,
       Welcome Home and Mortgage Refinancing Assistance Program, shall not count against
       these limits;
    B. The AHP subsidy requested for a project may not exceed $50,000 per AHP-eligible unit
       (but only $15,000 per unit for owner-occupied rehab and $15,000 per bed for shelter
       projects); and
    C. The AHP subsidy requested may not exceed $1,000,000 per project.

X. AHP scoring and award of subsidy (see also Attachment A [Scoring Criteria] and
   Attachment F [Feasibility Guidelines])
    A. In each AHP offering, AHP applications will be reviewed for eligibility according to
       this Plan, for feasibility according to the criteria in Attachment F, and scored according
       to the criteria in Attachment A.
    B. The Board will approve eligible and feasible applications in descending scoring order,
       starting with the highest-scoring application, until remaining AHP funds are insufficient
       to fund the next highest-scoring application.
    C. Of the remaining applications not approved for funding, the Board will designate the
       four next highest scoring applications as alternates.

XI. Policies for Transfer of Projects (see Attachment B)

XII. Policies for Modification of Projects (see Attachment D)

XIII. Definitions (see Attachment E)

XIV. Arbitrage
   It is the goal of the FHLBank to permit a reasonable temporary period between the time AHP
   funds are disbursed by the FHLBank and the time the funds are needed for approved AHP
   purposes. In an attempt to minimize the use of AHP funds by Members for arbitrage
   purposes the following guidelines will be followed:
       1. Generally, Members must use AHP funds for approved AHP purposes within 60
          calendar days of disbursement by the FHLBank; and
       2. Members failing to utilize AHP funds within the time limits prescribed above must
          demonstrate to the satisfaction of the FHLBank that the approved project will receive
          the full benefit of the AHP funds, including any arbitrage earnings between
          disbursement by the FHLBank and final use by the Member, or permit recapture
          thereon, in accordance with the recapture provisions of §1291.8 of the AHP
          regulations.




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