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How much money can my project get?
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AHP applications are scored competitively based on a number of project attributes, including AHP dollars requested per unit. In recent rounds, AHP grants have averaged $5,000 per housing unit.
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When do I apply and how soon do I know the result?
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Applications are due by the close of business on April 15 and October 15. We announce our decisions on May 15 and November 15, and the grants are available about 60 days later.
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How do I decide which lender to work with? |
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The lender that submits the AHP application must be a customer of the Seattle Bank. No lender may apply for more than 20 percent of the AHP funds available in that application period--currently the cap is $1.03 million per lender, per round. Developers should get their applications to the lender at least four weeks before the due date in case the lender is already working on a number of AHP applications. Your best choice is a lender who is already familiar with your organization or your project. For a list of customers in your state, look in our customers section.
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What are the lenders and sponsors responsibilities after receipt of an AHP grant?
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We may visit the project when it is complete to determine if it is in compliance--especially if it is affordable rental housing. We expect that developers will create the number of homes promised on the AHP application and that those homes will be occupied by and affordable to families at the income levels described in the application.
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What if the homes or apartments in the project are not occupied by and affordable to families at the income levels committed to in the application?
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In the worst case, we can require the developer to repay the AHP grant. We would prefer, however, to work with the developer and the lender to bring the project into compliance with the application within a reasonably short period. We have found that AHP compliance is easier for the developer if its AHP grant application is identical to its grant applications to other funders (i.e. same number of units, same income level served, same retention period).
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Community Investment Program (CIP)
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If the rate advantage of the CIP is only 15 basis points, why would I, as a lender, be interested in using it?
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The CIP offers some other advantages besides just price.
- It is a fixed-rate, long-term source of wholesale funds. Because a lenders cost of funds is fixed at the CIP rate, the lender may be more willing to make a longer-term loan for a project since it doesnt have to worry about interest rate risk over the life of the loan. (This advantage is especially important to developers who need to demonstrate that they have a long-term, fixed-rate loan when they apply for federal Low-Income Housing Tax Credits.)
- We offer our customers reasonably priced interest rate locks for up to 24 months. If a developer and a lender think interest rates are on their way up, they may want to explore paying for a rate lock.
- Using a CIP Advance is a good way for lenders to mark a loan as community lending, which counts towards their CRA performance.
- CIP Advances normally dont count against the lenders line of credit with the Seattle Bank, although they do have to be collateralized just like standard advances.
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My project looks like it would qualify for a CIP loan. How do I know for sure?
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The lender should download and complete the CIP application and fax it to the Seattle Bank. We will let the customer know in just a couple of days if its application has been approved. Theres no application fee, and the approval is good for one year.
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Do I have to be a nonprofit developer to benefit from a lender's CIP Advance?
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Absolutely not. Most of the CIP advances have been used by for-profit developers or benefited first-time homebuyers.
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The Challenge Fund
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Does the recipient of a Challenge Fund grant have to be a nonprofit organization?
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Yes. Lenders can only award their Challenge Fund grants to nonprofit organizations.
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Does the lender have to make a contribution to the project?
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Yes. The lender that secures the grant is required to support the project in some way. Support may include the donation of services or cash as well as proposing to reduce the interest rate or fees if the lender funds the loan on the project.
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What types of costs can be paid for with Challenge Fund grants?
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Challenge Fund grants can be used for any predevelopment cost, including engineering, architectural or legal fees, or to pay for grant writers or consultants. You can also use the grant to pay for staff salaries at the nonprofit organization that are directly associated with the development of the project.
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Home$tart Savings Program
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Im a small lender in a rural community. How I can make sure that Home$tart families get first-time homebuyer education?
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You can teach the class yourself using materials that are available from the Federal Home Loan Bank of Seattle, MGIC, Fannie Mae, your state housing finance agency, or any other reliable source. You may want to contact local Realtors to see if they already offer classes or would like to start doing so. Also, check with your local housing authority or nonprofit affordable housing developer. They may be interested in working with your bank to make the program a success.
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Im a lender who enrolled a family in Home$tart last year. They have saved for a downpayment and qualified for a mortgage. Now I find that their income is over 80 percent. What do I do?
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If the family qualified when you first enrolled them in Home$tart, they are still eligible. We require that the lender provide us with the same documentation on the family that it used for the loan application.
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Will you want to see copies of homebuyers bank statements?
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Yes. When the lender asks for a disbursement of a Home$tart grant, we require proof of the familys savings, which includes bank statements for at least six months.
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Can a gift be a part of the savings account and be matched?
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Yes.
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