Recommendations for
Successful Affordable Housing
Program Applications
April 23, 2024
2024 Sponsor Training
Agenda
FEDERAL HOME LOAN BANK OF ATLANTA
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• AHP General Fund Overview
• Why Apply for AHP General Fund?
• How to Apply
• Application Criteria and Scoring
• The Role of Underwriting
• Compliance and Risk Management
• Online Application
• Helpful Resources
• Questions and Answers
FEDERAL HOME LOAN BANK OF ATLANTA
Disclaimer
3
Federal Home Loan Bank of Atlanta (the Bank) provides training materials to aid
in understanding the requirements of the Affordable Housing Program (AHP).
However, the participants in the AHP remain responsible for reviewing the AHP
regulations, AHP Implementation Plan, AHP agreements and related supporting
documentation (the AHP Requirements), as the same may be updated from time
to time.
In the event there is a discrepancy in the information or conflict between the AHP
Requirements and the training materials, the AHP Requirements shall control and
be applicable to all AHP projects.
It is also the sponsor’s responsibility to ensure that the project information,
including but not limited to the project type, is entered correctly into the
online application system and is consistent with supporting documentation
provided.
AHP General Fund Overview
FEDERAL HOME LOAN BANK OF ATLANTA 4
AHP General Fund Overview
Equity-like Funding for Rental or Ownership Development
• 10 percent of FHLBank Atlanta’s annual net income is committed to affordable
housing and community development
• AHP General Fund is gap funding for the development of affordable owner-
occupied and rental housing for low- to moderate-income households
• AHP General Fund reduces rental project debt service
– Permits a reduction in project rents to enhance affordability
– Makes projects feasible that otherwise may not be feasible
• Projects can be located anywhere in the country, but funds are accessed
exclusively through members of FHLBank Atlanta
• AHP General Fund is a competitive program based on a 100-point scale
FEDERAL HOME LOAN BANK OF ATLANTA 5
New for 2024: Up to $1 Million per Project!
Increase in AHP Subsidy Amount for 2024:
• On April 16, 2024, the Federal Home Loan Bank of Atlanta announced a
record
$55 million in available funds through our 2024 Affordable
Housing Program (AHP) General Fund!
• Applicants may apply for up to $1 million per project maximum direct
subsidy (direct cash payment)
in grant funding to support the acquisition,
construction, or rehabilitation of multifamily and single-family housing
• An increase from $750,000 from last year’s round.
FEDERAL HOME LOAN BANK OF ATLANTA 6
AHP General Fund Overview
What Makes AHP Different from Other Sources of Funds?
• Equity-like funding
• No interest accrues
• No expectation of repayment if project continues to provide the housing as
committed in the application
• Secured with a note and security instrument to ensure compliance
through the affordability period
– 15 years for rental projects
– 5 years for ownership projects that include a transfer of ownership
• Retention (i.e., a mortgage) is not allowed for owner-occupied units that do not include
transfer of ownership (e.g., rehabilitation)
FEDERAL HOME LOAN BANK OF ATLANTA 7
AHP General Fund Overview
• May be used for
– Rental
– Ownership
– New construction
– Rehabilitation
– Supportive housing
– Mixed Use
– Owner-occupied rehabilitation
– Down payment assistance
• May not be used for
– Non-residential costs
– Operating subsidies
– Empowerment activities
– Housing while undergoing medical treatment
– University housing
FEDERAL HOME LOAN BANK OF ATLANTA 8
FEDERAL HOME LOAN BANK OF ATLANTA 9
Examples of FHLBank Atlanta AHP Projects
Toby’s Place for Women and Children
Columbia, SC
Northside Commons
Miami, FL
Ox Fiber Apartments
Frederick, MD
Bickerstaff Crossing
Richmond, VA
AHP General Fund – LIHTC Project Example
Example: 9% LIHTC Deal
Example: 52-unit, Senior Rental Project
Total Sources
AHP
Member First
Mortgage
Other Sources*
Acquisition $180,000
$157,800
$22,200
Construction $5,131,407
$310,200 $180,000
$4,641,207
Soft Costs $706,376 $706,376
Other Costs $1,010,059 $1,010,059
Total Development Budget $7,027,842
$468,000 $180,000
$6,379,842
*Other sources include subordinate and soft debt and equity
Borrowing the Amount
of AHP from the Member
Total Member First
Mortgage
$648,000
AHP $0
Member Loan-to-Value
(LTV)/cost
9.2%
Debt Coverage Ratio 0.56
Using AHP Funds
Total Member First
Mortgage
$180,000
AHP $468,000
Member Loan-to-Value
(LTV)/cost
2.6%
Debt Coverage Ratio 2.14
Making Lending
Possible and
Projects Feasible
FEDERAL HOME LOAN BANK OF ATLANTA 10
AHP General Fund – Non-LIHTC Rental Example
Example: 8-unit, Senior Rental Project, Housing Authority Sponsor
Total Sources
AHP
Member First
Mortgage
Other Sources*
Acquisition $25,000
$25,000
$0
Construction $1,028,578
$83,000 $209,328
$819,250
Soft Costs $52,030
$17,000 $7,950
$44,080
Other Costs $70,000
62,360
$7,640
Total Development Budget $1,175,608
$100,000 $304,638
$870,970
*Other sources include subordinate and soft debt and equity
Borrowing the Amount
of AHP from the Member
Total Member First
Mortgage
$404,638
AHP $0
Member Loan-to-Value
(LTV)/cost
34.4%
Debt Coverage Ratio 1.14
Using AHP Funds
Total Member First
Mortgage
$304,638
AHP $100,000
Member Loan-to-Value
(LTV)/cost
25.9%
Debt Coverage Ratio 1.51
Improves Project
Feasibility
FEDERAL HOME LOAN BANK OF ATLANTA 11
AHP General Fund – Non-LIHTC Rental Example
Example: 8-unit, Homeownership Project, 100% Very Low-Income
Total Sources
AHP
Member First
Mortgage
Other Sources*
Acquisition $50,214
$50,214
$0
Construction $2,131,295
$748,400 $852,568
$530,327
Soft Costs $164,692 $164,692
Other Costs $84,444
$1,600
$82,844
Total Development Budget $2,430,645
$750,000 $902,782
$777,863
*Other sources include subordinate and soft debt and equity
**First Mortgage based on 7.5% interest rate / 30-year amortization
First Mortgage without AHP
Purchase Price $303,831
AHP $0
First Mortgage** $206,598
First Mortgage LTV
(mortgage / purchase price)
68%
Monthly Homebuyer P&I
Payment
$1,291
Using AHP Funds
Purchase Price $303,831
AHP $750,000
First Mortgage** $112,848
First Mortgage LTV
(mortgage / purchase price)
37%
Monthly Homebuyer P&I
Payment
$705
Improves
Homebuyer
Affordability
-45%
FEDERAL HOME LOAN BANK OF ATLANTA 12
AHP General Fund Overview
FEDERAL HOME LOAN BANK OF ATLANTA 13
Getting Started
• Sponsors are housing developers, public entities, contractors, community
builders, and other organizations engaged in development and rehabilitation
of affordable rental or owner-occupied housing
– Sponsors drive the application process and submit applications
– Members review and approve applications
• All applications include a member
– Members are the financial institutions that are part of FHLBank Atlanta
– We can assist you in finding a member
– Visit www.fhlbatl.com
for member locator tool
How to Apply
FEDERAL HOME LOAN BANK OF ATLANTA 14
How to Apply
Application is submitted through AHPBuild
®
by the sponsor
• Log in on the home page of the FHLBank Atlanta website
Sponsor submits application to member for review and approval
• Supporting documents are uploaded through AHPBuild
FHLBank Atlanta member approves application
Webinars are offered to review the actual application content
• One-on-one assistance is also available
FEDERAL HOME LOAN BANK OF ATLANTA 15
How to Apply
FEDERAL HOME LOAN BANK OF ATLANTA 16
General Fund Application and Underwriting Schedule
Initial Monitoring Review (IMR)
Time Limits
FEDERAL HOME LOAN BANK OF ATLANTA
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Project Timeline
Development
Period
Retention Period
App.
39 mos.
Ownership: 5 Years
Rental: 15 years
Conditions of Funding
Funding Deadline 24
months
December 2026
(except ownership taking down
AHP funds at HB closing)
Report Complete
Project Completion Deadline
39 months
March 2028
Progress Reports
Award Date
December 2024
Long-term Monitoring for Rental Non-LIHTC Projects
Application Criteria Threshold
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Permanent Sources and Uses Statement
FEDERAL HOME LOAN BANK OF ATLANTA
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1
2
3
4
5
Site Control
Sponsor Qualifications
Project Specific Thresholds
20 Percent of Funding Committed by an Unrelated Third Party
Application Certification
Application Scoring Criteria
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FEDERAL HOME LOAN BANK OF ATLANTA
Application Criteria Scoring
FEDERAL HOME LOAN BANK OF ATLANTA
District Priorities Points Type
Member Financial Participation 10 Variable
Project Readiness 5 Variable
Health Care Empowerment 5 Fixed
AHP Subsidy per Unit 7 Variable
Enhanced Broadband Access 4 Variable
Heirs’ Property Resolution 5 Fixed
In-District Application 5 Fixed
Difficult Development Area 5 Fixed
Other Categories
Donated or Conveyed Government-owned or Other Property 5 Variable
Nonprofit or Government Sponsor 5 Variable
Targeting to Lower-Income Households 20 Variable
Underserved Communities and Populations 9 Variable
Creating Economic Opportunity 7 Variable
Community Stability, Including Affordable Housing Preservation 8 Fixed
Total 100
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Scoring - Member Financial Participation (MFP)
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Member Financial Participation
• Five points – credit/equity must come from member submitting application
• Minimum five (5) percent of total development costs
• Permanent or construction financing
• Letter of credit
• Debt or equity
• Must demonstrate the member's direct participation in the project
• Must be closed prior to project completion
• Cash collateralized bridge loans are not eligible for points
• Commitments should include:
– Intent to extend credit and/or equity
– Amount and type of funding
– Borrower meets the funder’s credit criteria
– Project has been underwritten and conditionally eligible to receive funder’s credit and/or equity
– Funder’s signature, expiration date, and borrower’s acceptance
Available Points
--------------------------
5 Points / Variable
MFP Collaboration – (MDI, CDFI, LIDCU)
Member Financial Participation (continued)
• 5 points for funding collaboration between a Minority
Depository Institution (MDI), Community Development
Financial Institution (CDFI), or Low-income Designated
Credit Union (LIDCU) and a non-MDI, CDFI or LIDCU
Thresholds
:
– Must encourage collaborations between banks and MDIs,
CDFIs, and/or LIDCUs
– Must be members of FHLB Atlanta as of the application
deadline
– Must be designated as a MDI, CDFI, or LIDCU as of the
application deadline
– Must provide the funding to the project
– Must be unaffiliated and not be in control of, controlled by, or
in common control with the collaborating member
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Available Points
--------------------------
5 Points / Variable
MFP Collaboration – (MDI, CDFI, LIDCU)
Member Financial Participation (continued)
• Collaborating options include:
23FEDERAL HOME LOAN BANK OF ATLANTA
Non-MDI, CDFI,
or LIDCU
MDI, CDFI, or
LIDCU
Applying Member
Collaborating Funder
MDI, CDFI, or
LIDCU
Non-MDI, CDFI,
or LIDCU
Applying Member
Collaborating Funder
OR
Scoring – Project Readiness
Rental
• Non-LIHTC: 100 percent of non-AHP permanent sources committed
• 9 percent LIHTC: tax credits awarded by state allocating agency
• 4 percent LIHTC: 100 percent of non-AHP permanent sources committed (must have bond
inducement resolution or equivalent)
24FEDERAL HOME LOAN BANK OF ATLANTA
Ownership
New Construction/Rehabilitation
• 75 percent of the units presold to qualifying households
Owner-Occupied Rehabilitation
• 75 percent of the units have been identified, rehab specifications and cost breakdown have been
determined for identified units, and homeowners are income eligible for AHP
Down-payment Assistance
• 100 percent of the homebuyers identified and qualified
Project Readiness – Funding Commitments
• Two (2) points
Available Points
--------------------------
5 Points total / Variable
Project Readiness
25FEDERAL HOME LOAN BANK OF ATLANTA
Project Readiness - Construction Readiness
• Additional three (3) points awarded for construction readiness,
bringing the total Readiness points to five (5)
• Points will be awarded for financing readiness criteria by project
type in combination with
one of the following construction
readiness criteria:
– Construction or rehabilitation-related permit(s) has been issued
– Construction or rehabilitation financing has closed
– Rehabilitation work is in progress
Available Points
--------------------------
5 Points total / Variable
Application Criteria Scoring – Health Care Empowerment
26FEDERAL HOME LOAN BANK OF ATLANTA
Health Care Empowerment
• Health care delivery, referrals, or services
throughout the entire AHP retention period
• On-site, mobile services, and/or accessible off-site
• Offered to all residents
• Structured agreement required
• Examples:
– Primary medical care including vaccinations and
screening programs
– Mental health counseling; and/or
– Alcohol or substance abuse counseling
– Nutritional counseling
• Update for 2024: Health Care Empowerment
services no longer must be new service offerings.
– Sponsor can replicate a service offered at its other
properties
Available Points
--------------------------
5 Points / Fixed
Application Criteria Scoring – AHP Subsidy per Unit
27FEDERAL HOME LOAN BANK OF ATLANTA
AHP Subsidy per Unit
• For this category, projects using fewer AHP subsidy
dollars per AHP-assisted unit will receive more
points than projects using more AHP subsidy
dollars
• Variable score of up 7 points
• Cannot be self-scored
• Based on the weighted average formula, projects
with subsidy per unit of $50,000 or more will not
receive any points in this category
Available Points
--------------------------
7 Points / Variable
Application Criteria Scoring – Enhanced Broadband Access
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• One (1) point will be awarded to projects in which 100
percent of the units have access to four times the
minimum broadband download speed. This
minimum
threshold requirement
must be met to receive points in
this category
• One additional
point for each of the following, for up to a
maximum of 4 points
– Computers in a quantity equal to the number of
units in the project times 10 percent (1 point)
– Free or reduced cost broadband access devices,
such as computer equipment, tablets, or hotspot
devices (1 point)
– Free Wi-Fi access available within all units (1 point)
FEDERAL HOME LOAN BANK OF ATLANTA
Enhanced Broadband Access
Available Points
--------------------------
4 Points / Variable
Application Criteria Scoring – Heirs’ Property Resolution
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• Heirs’ property is property without clear title
• To receive the five (5) points in this category, members must submit
documentation evidencing at least one (1)
of the three (3) Heirs’
Property Resolution Categories:
1. Pro bono legal services
2. Local government innovation
3. Developer/contractor driven affordable housing initiatives
Thresholds
• Submit documentation that project includes a solution to an heirs’
property issue. Provide documentation of a resolution plan that
addresses the heirs’ property issue as part of the AHP project.
Heirs’ property resolution plan must
:
– Have committed resources
– Be contemporaneous with the project
– Achieve the intended objectives without negative impact to the
existing owner or the community
– Address heirs’ property in one or more of the three (3) categories
noted above
• Sponsor must offer an ongoing education and/or awareness program
addressing heirs’ property prevention and resolution
FEDERAL HOME LOAN BANK OF ATLANTA
Heirs’ Property Resolution
Available Points
--------------------------
5 Points / Fixed
Application Criteria Scoring: In-district Application
30FEDERAL HOME LOAN BANK OF ATLANTA
In-district Application
• 100 percent of the units in the project are located in
the FHLBank Atlanta district
Available Points
--------------------------
5 Points / Fixed
– Alabama
– District of Columbia
– Florida
– Georgia
– Maryland
– North Carolina
– South Carolina
– Virginia
Application Criteria Scoring – Difficult Development Area
31FEDERAL HOME LOAN BANK OF ATLANTA
Difficult Development Areas
• Five (5) points for projects in which 100 percent
of the units are located in a Difficult Development
Area (DDA)
• Based on the latest documentation available from
the U.S. Department of Housing and Urban
Development (HUD)
• DDAs are designated based on high development
costs relative to income
• https://www.huduser.gov/portal/datasets/qct.html
Available Points
--------------------------
5 Points / Fixed
Application Criteria Scoring – Donated/Conveyed Govt. Owned
Donated or Conveyed Government-Owned or Other
Property
• Federal government property sold for a project
• Property donated by any other party at a small, negligible
amount, most often $10 or less.
• At least 25 percent of the units, land, or land lots
• Score: percentage of units, land or land lots donated to the
project times five points
• Donation must be contemporaneous with the AHP project
• Must be donated by a party not related to the sponsor, project
owner, or member, prior to the disbursement of AHP funds
• A donation from government or quasi-government sellers or
lessors to a related party is allowed
32FEDERAL HOME LOAN BANK OF ATLANTA
Available Points
--------------------------
5 Points / Variable
Application Criteria Scoring – Nonprofit/Government Sponsor
Nonprofit or Government Sponsor
33FEDERAL HOME LOAN BANK OF ATLANTA
Available Points
--------------------------
5 Points / Variable
Rental Projects
1 point: Nonprofit sponsor has or will
have an ownership interest
4 additional points: Nonprofit sponsor
has a controlling interest
• Greater than 50% ownership if non-
LIHTC
• Greater than 50% ownership in GP if
LIHTC, or 50% with “control”
Owner- occupied Projects
1 point each (maximum 5 points):
• Marketing and outreach
• Property acquisition
• Pre-development
• Construction rehabilitation
• Qualifying borrowers for home mortgages,
including AHP
• Providing or arranging permanent mortgage
financing
Application Criteria Scoring – Targeting
Household Income Targeting
• Rental compared to rental. Ownership compared to
ownership
– Income categories:
• Moderate: >65-80 percent of AMI
• Low: >50-65 percent of AMI
• Very low: 50 percent or less of AMI
• Maximum score of 20 points will automatically be
awarded to rental projects that reserve at least
60% of units for very low-income households (50
percent of AMI or less)
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Income
Targeting
Points
FEDERAL HOME LOAN BANK OF ATLANTA
Available Points
--------------------------
20 Points / Variable
– At least 20 percent of the units in a rental project must be reserved for very low-
income residents
Income Calculator
Expanding Your Eligible Customer Base
• AHP income limit methodology and calculator
• Selects the greatest of four calculation
methodologies
• Point-and-click calculator automatically provides
the highest income limit
• AMIs >80% excluded from AHP funds
• FHLBank Atlanta Income Calculator Tool
https://cis.fhlbatl.com/regsponsor/incomecalculation
FEDERAL HOME LOAN BANK OF ATLANTA 35
Application Criteria Scoring- Underserved Comm. & Population
FEDERAL HOME LOAN BANK OF ATLANTA 36
Underserved Communities and Populations
• Housing for Homeless Households (3 points)
• Native American Tribal areas (3 points)
• Senior Housing (3 points)
Housing for Homeless Households
: At least 20 percent of units must be reserved for
homeless households, or the creation of transitional housing for homeless households
permitting a minimum of six months occupancy
Native American Tribal areas
: Some or all the project must be located in an area
owned or otherwise controlled by a Native American Tribe. Must be federally or state
recognized and located in the Bank’s district.
Sponsor must provide documentation demonstrating that the project is located in
an eligible area.
Senior Housing
: At least 20 percent of units must be reserved for senior households
(62 years and older)
Available Points
--------------------------
9 Points / Variable
Application Criteria Scoring – Creating Economic Opportunity
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Creating Economic Opportunity – Promotion
of Empowerment
• Up to five (5) points for promotion of empowerment
• Residential Economic Diversity - Two (2) points for projects where one or
more of the project’s affordable housing units is located in a high-income area
https://geomap.ffiec.gov/FFIECGeocMap/GeocodeMap1.aspx
Empowerment Activities Owner (non-OOR)
Owner Occupied
Rehab (OOR)
Rental
Pre-closing Counseling via the Bank-
prescribed counseling
2.5 Points
N/A
N/A
Employment Readiness Program
2.5 Points 2.5 Points
2.5 Points
Onsite Daycare (Child or Adult)
2.5 Points
N/A 2.5 Points
Training and Education Program
2.5 Points
2.5 Points
2.5 Points
Owner/Resident Involvement Program
2.5 Points
2.5 Points
2.5 Points
Counseling Program
(Homeowners and Tenants)
N/A
2.5 Points
2.5 Points
FEDERAL HOME LOAN BANK OF ATLANTA
Available Points
--------------------------
7 Points / Variable
Application Criteria Scoring - Community Stability, including
Affordable Housing Preservation
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Vacant or Abandoned
1. The redevelopment of vacant
residential where at least 60
percent of the units are vacant at
the time of acquisition by the
property owner, and all vacant or
abandoned units are being
rehabilitated;
2. In the case of existing non-
residential properties, 100
percent of the building is vacant
or abandoned
FEDERAL HOME LOAN BANK OF ATLANTA
Community Stability, Including Affordable Housing Preservation
Neighborhood Stabilization
3. A project that is an integral part
of the community revitalization
or economic development
strategy approved by a unit of
state or local government or
instrumentality thereof
Some or all of the project
must be within the
designated area
Available Points
--------------------------
8 Points / Fixed
The Role of Underwriting
FEDERAL HOME LOAN BANK OF ATLANTA 39
The Role of Underwriting
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Project Communications
• We only discuss projects with the primary project sponsor and/or
member and will not discuss projects with consultant without member
and/or project sponsor present
Development Budget Guideline Examples
• Sponsor’s acquisition cost or donated value
– Acquisition cost must be supported by the sponsor’s written description with
backup documentation of how the budgeted acquisition cost in the budget
was determined
• Reasonable hard cost based on industry construction cost data
FEDERAL HOME LOAN BANK OF ATLANTA
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Budget Guideline Examples
• Capitalized reserves:
‒ Maximum nine (9) months operating expenses plus nine months of hard
debt service
‒ Maximum 12 months operating expenses (net of all reserves included in
operating expense) plus twelve (12) months of hard debt service for
projects with 100 percent of units reserved for supportive housing
households
‒ For projects using state-administered funding or rental assistance from a
federal government agency (e.g., HUD or USDA), the Bank may defer to
the requirement published by the state HFA or its equivalent or the federal
government agency
• Items in the development budget typically paid as operating expenses
are included in the reserves calculation
FEDERAL HOME LOAN BANK OF ATLANTA
Budget Guidelines – Capitalized Reserves
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Budget Guideline Examples
• 100 percent of net proceeds to the seller from the purchase of a
property from a related party seller must become a source of funds for
the subject project
‒ Not applicable for
‒ Governmental or quasi-governmental seller, or when AHP funds are used to
replace short-term debt or equity from the sponsor
‒ A related party’s debt or equity extended for the contemporaneous acquisition of
property
• Total soft cost maximum percentage
FEDERAL HOME LOAN BANK OF ATLANTA
Budget Guidelines
– Soft Cost Contingency & Related Party Property Sales
Project Type Maximum Soft Costs
4% LIHTC with bonds 35 percent
9% LIHTC projects 28 percent
Non-LIHTC 22 percent
Ownership development 25 percent
Owner-occupied rehabilitation 20 percent
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Developer Fee Guidelines
FEDERAL HOME LOAN BANK OF ATLANTA
Budget Guidelines – Developer Fees
Type Fee
All projects except as listed below 15%
Consultant fee if no change of ownership and 100% owned by nonprofit 5%
Other projects with no change/transfer of ownership 0%
• Calculated as percentage of total development costs net of
– Acquisition
– Reserves
– Developer fee
• Developer fee includes fees paid to consultants for services normally provided by a
developer
• FHLBank Atlanta may defer to state HFA guidelines if using state-administered funding
• Developer fee cannot increase if construction financing has closed and there is not a
proportional increase in hard cost
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Deferred Developer Fee Guidelines
• If financing has closed on/or before application with deferred developer
fee or other subordinate funding from a related party (e.g., “bridge” funds,
owner equity) as a source of funding:
– Then up to 50 percent of the AHP award can be used to reduce
deferred developer fee or other subordinate funding from a related
party; and
– At least 25 percent of the total developer fee remains deferred
• Must continue to meet Deferred Developer Fee guidelines throughout the
project life cycle
• Not applicable if AHP funds are used to replace short-term debt or equity
from the sponsor or a related party for property acquisition, construction,
or rehabilitation prior to the AHP funding
FEDERAL HOME LOAN BANK OF ATLANTA
Budget Guidelines – Developer Fees (continued)
Proforma Guideline Examples
• Debt coverage ratio: 1.00 minimum, 1.50 maximum at application though
board approval
• 1.75 maximum, after award, if new/additional sources of equity or soft debt
are secured that results in a reduction in hard debt service
• Net cash flow: Maximum 15 percent of effective gross income
– Alternate need for subsidy test may be used for projects with no hard debt, DCR, or net
cash flow outside of stated guidelines
• Management fees: Maximum nine (9) percent of gross rent
• Replacement reserves: Up to $450 per unit per year
• Annual operating expense: Maximum 80 percent of effective gross income (EGI)
in year one (90 percent of EGI in year one for projects receiving maximum
targeting points)
Market Feasibility Guideline Example
• Defer to State approved market feasibility if using state-administered funding
FEDERAL HOME LOAN BANK OF ATLANTA
Application Criteria Underwriting – Debt Service Coverage Ratio
Project Completion
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Requirements to Report Complete
• Draw down all AHP General Fund subsidies
• Construction must be 100 percent complete
• All requested documents must be received and approved by the Bank
• Project-specific requirements:
– Ownership: all owner-occupied units must be sold and occupied by eligible households
– Rental: projects must have a certificate of occupancy and be at least 75 percent
occupied
FEDERAL HOME LOAN BANK OF ATLANTA
Compliance and Risk Management
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Compliance and Risk Management
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Scoring Commitments
• Owner and Sponsor shall, from project completion through the end of the
AHP retention period, continue to meet scoring and underwriting
commitments in the application, subject to modification as may be approved
by the Bank
Conflicts Between AHP and Other Funders
• It is the project sponsor's responsibility to ensure compliance with all AHP
requirements can be met and are not in conflict with other financing and/or
service providers’ requirements
FEDERAL HOME LOAN BANK OF ATLANTA
Compliance and Risk Management
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Modifications (Per AHP regulation §1291.29)
• (a) Modification procedure. If, prior to or after final disbursement of funds to a project from all
funding sources, in order to remedy noncompliance or receive additional subsidy, there is or will
be a change in the project that would change the score that the project application received in the
AHP funding round in which it was originally scored and approved, had the changed facts been
operative at that time, a Bank shall approve in writing a request for a modification to the terms of
the approved application, provided that:
– (1) The Bank first requests that the project sponsor or owner make a reasonable effort to cure any
noncompliance within a reasonable period of time, and the noncompliance could not be cured within a
reasonable period of time;
– (2) The project, incorporating any such changes, would meet the eligibility requirements of this part;
– (3) The application, as reflective of such changes, continues to score high enough to have been approved in
the AHP funding round in which the application was originally scored and approved by the Bank, which is as
high as the lowest ranking alternate approved for funding by the Bank if the Bank has a written policy to
approve alternates for funding; and
– (4) There is good cause for the modification, which may not be solely remediation of noncompliance, and the
analysis and justification for the modification, including why a cure of noncompliance was not successful or
attempted, are documented by the Bank in writing.
FEDERAL HOME LOAN BANK OF ATLANTA
FEDERAL HOME LOAN BANK OF ATLANTA
Any person who knowingly makes a false statement or
misrepresentation to the Federal Home Loan Bank is subject to
penalties that may include disqualification of application, sponsor
suspension, fines, imprisonment, or both, under the provision of Title
18, United States Code, Sec. 1014, including, but not limited to:
• Members
− Loan Officers
− Processors (Submitters)
− Underwriters (Approvers/Program Managers)
− Closers
• Closing Agents
• Contractors/Inspectors
• Real Estate Agents
50
Compliance and Risk Management
Compliance and Risk Management
Types of false statements include but are not limited to:
• Omitting or not fully disclosing information on the application certification
– Certification must remain true throughout entire underwriting period
• Not having completed work that was represented to the Bank as complete
• Not disclosing if under investigation by a law enforcement agency or
applicable regulator
• Sources and uses submitted are not consistent throughout funders
You have the duty to disclose any material changes to the project to the
Bank in a timely manner
FEDERAL HOME LOAN BANK OF ATLANTA 51
Online Application
FEDERAL HOME LOAN BANK OF ATLANTA 52
Online Application Registration Process
New Project Sponsors
• Registered sponsors do not need to register again
• Visit FHLBank Atlanta website to start a new, one-time registration
– https://cis.fhlbatl.com/regsponsor/
• Previously registered sponsors must review their organization profile to
ensure it is complete and accurate
FEDERAL HOME LOAN BANK OF ATLANTA 53
Online Application Components – AHPBuild Portal
Application Home
FEDERAL HOME LOAN BANK OF ATLANTA 55
Online Application Components
FEDERAL HOME LOAN BANK OF ATLANTA 56
Apply for Funding Description
RENTAL Allows you to initiate AHP subsidy application for
projects with units for households that are for
tenant’s occupancy
No owner-occupants
OWNERSHIP Allows you to initiate AHP subsidy application for
projects with owner-occupied units in a single or
multifamily building
LEASE-
PURCHASE
Allows you to initiate AHP subsidy application for
projects with units initially leased and subsequently
sold to the homeowners
Call the Bank for further information if you are
submitting a lease-purchase application
CONTINUE
APPLICATION
Allows you to access incomplete/partially saved
applications
CHECK STATUS Allows you to check the status of your applications
submitted in the current round
Online Application Components
General Information
FEDERAL HOME LOAN BANK OF ATLANTA 57
Online Application Components
General Information
FEDERAL HOME LOAN BANK OF ATLANTA 58
Online Application Components
General Information
FEDERAL HOME LOAN BANK OF ATLANTA 59
Development Team
FEDERAL HOME LOAN BANK OF ATLANTA 60
Online Application Components
Details
Owner of Record
Member
FEDERAL HOME LOAN BANK OF ATLANTA 61
Online Application Components
Details
Online Application Components
Project Targeting
FEDERAL HOME LOAN BANK OF ATLANTA 62
Online Application Components
Building Information
FEDERAL HOME LOAN BANK OF ATLANTA 63
Online Application Components
Financial Feasibility
FEDERAL HOME LOAN BANK OF ATLANTA 64
Online Application Components
Sources of Funding – Rental Projects
• Non-permanent funding sources
– Include only short-term sources that will not last past project completion
• Bridge loans
• Construction loans
• Permanent funding sources
– Include only long-term sources that will remain in place past project completion
– Show status of approved only if you have documented firm commitment
– Include the market value of in-kind donations and voluntary professional
labor or services
– Include the value of donated land as a source (land equity)
– Documentation must show the amount of credit or equity to be extended
– Do not include non-contemporaneous debt
FEDERAL HOME LOAN BANK OF ATLANTA 65
Online Application Components
Sources of Funding – Ownership Development Projects
• Non-permanent funding sources
– Include short-term sources that will not last past project completion
• Bridge Loans
• Construction Loans
• Permanent funding sources
– Include sources that will be identified on the closing disclosure (CD)
– Include non-permanent sources that will be the funding that will allow the
sponsor to extend sponsor-provided first mortgages
• Fundraising
• Grants to the sponsor
– Show status of approved only if you have documented firm commitment
– Include the market value of in-kind donations and voluntary professional
labor or services
– Include the value of donated land as a source (land equity)
– Documentation must show the amount of credit or equity to be extended
FEDERAL HOME LOAN BANK OF ATLANTA 66
Online Application Components
AHP Subsidy Information
FEDERAL HOME LOAN BANK OF ATLANTA 67
Online Application Components
Uses of AHP Funds
• Use of AHP funds here will determine allocation in the development
budget (maximum of three)
– Acquisition
– Hard (construction) cost
– Soft cost
– Other cost
FEDERAL HOME LOAN BANK OF ATLANTA 68
Online Application Components
Development Budget
FEDERAL HOME LOAN BANK OF ATLANTA 69
Online Application Components
Pro Forma (Rental Projects)
FEDERAL HOME LOAN BANK OF ATLANTA 70
Online Application Components
Scoring Criteria
FEDERAL HOME LOAN BANK OF ATLANTA 71
Guidelines
Online Application Components
Additional Information
FEDERAL HOME LOAN BANK OF ATLANTA 72
Online Application Components
Supporting Documentation
FEDERAL HOME LOAN BANK OF ATLANTA 73
Click to upload
supporting documents
Online Application Components
Supporting Documentation
FEDERAL HOME LOAN BANK OF ATLANTA 74
Click to download
templates
Click to browse and
upload documents
Drag and drop
in the box
or
Online Application Components
Variance Questions:
FEDERAL HOME LOAN BANK OF ATLANTA 75
Click to respond to
variance questions
Online Application Components
• Review and Finalize – application deadline 7/29/24, 11:50pm ET
• Please note – technical assistance will not be available after 5pm EST on
7/29/24
FEDERAL HOME LOAN BANK OF ATLANTA 76
Helpful Resources – Connecting with Potential Customers
Lenders Participating in AHP Homeownership Set-aside Program and
Multifamily Housing
• “Find a Member” feature the Bank’s website now includes member
business contacts for multifamily in addition to existing homeownership
contacts
77
Search Options
FEDERAL HOME LOAN BANK OF ATLANTA
• Contact the Bank if you need assistance connecting with a member in your area
Helpful Resources
FEDERAL HOME LOAN BANK OF ATLANTA
Application Resources
Sponsor Registration Instructions
http://corp.fhlbatl.com/files/documents/ahp-sponsor-registration.pdf
Targeted Community Lending Plan https://corp.fhlbatl.com/files/documents/targeted-community-lending-
plan.pdf
AHP Implementation Plan http://corp.fhlbatl.com/files/documents/ahp-implementation-plan.pdf
Income Documentation Requirements
http://corp.fhlbatl.com/files/documents/ahp-income-documentation-
requirement.pdf
Retention Agreement Rider and Instructions Rental: http://corp.fhlbatl.com/files/documents/ahp-retention-
agreement-rider-and-instructions-general-fund-rental-project.pdf
Ownership:
http://corp.fhlbatl.com/files/documents/ahp-retention-agreement-
rider-general-fund-owner-occupied.pdf
MDI, CDFI, and LIDCU Member List 2024 mdi lidcu cdfi list state order.pdf (fhlbatl.com)
FHLBank Atlanta’s AHP Income Limits Calculator https://cis.fhlbatl.com/regsponsor/incomecalculation
Member Locator Registration Form
http://corp.fhlbatl.com/files/documents/ahp-competitive-zip-code-
locator..xlsx
Program Guidelines Links
FHLBank Atlanta Website http://corp.fhlbatl.com/
78
Protocol for Contacting FHLBank Atlanta – Inquiries
• Primary project sponsor and/or member may contact FHLBank Atlanta’s
project analyst and/or Community Investment Services management
regarding project related inquires
• Primary project sponsor and/or member may not contact FHLBank Atlanta’s
board members or any member of the Advisory Council regarding project
related inquires
FEDERAL HOME LOAN BANK OF ATLANTA 79
Diversity, Equity, and Inclusion
FEDERAL HOME LOAN BANK OF ATLANTA 80
Diversity, equity, and inclusion (DEI) is integral to the success of FHLBank
Atlanta. We are committed to embedding DEI principles across all levels
of our organization and into all elements of our internal and external
operations, strategic planning, and decision making.
We know that progress cannot be achieved through symbolic gestures or
complacency; therefore, we challenge ourselves to be self-reflective, hold
each other accountable, and continuously evaluate our practices to
ensure the full integration of DEI into our culture.
We are collectively stronger through an inclusive culture.
TOGETHER WE ACHIEVE
Contact Information
81
Julia L. Brown
Vice President
Multifamily Portfolio Manager
404.888.8093
Technical Assistance:
800.536.9650, Option 3
81FEDERAL HOME LOAN BANK OF ATLANTA
Emmanuel Ankrah
Banking Officer
Multifamily Portfolio Analyst II
404.888.8098
eankrah@fhlbatl.com
Joel Brockmann
Assistant Vice President
Senior Multifamily Portfolio Analyst
404.888.8156
jbrockmann@fhlbatl.com
ShaDonte Butler
Vice President
Relationship Manager
404.888.8416
sbutler@fhlbatl.com
Thank You!
