The Federal Housing Finance Agency (FHFA) is requesting stakeholder suggestions on how to improve the application process for project sponsors applying for Affordable Housing Program (AHP) funding through the Federal Home Loan Banks (FHLBanks).
Over the last 30-plus years, approximately $8 billion in grants have been distributed through the AHP to support FHLBank members’ work to address affordable housing needs in their communities, according to an FHFA press release. These grants have helped to finance more than 1 million single-family and rental housing units.
“FHFA’s efforts to streamline the AHP application process should improve the FHLBanks’ ability to provide much-needed funding for addressing the shortage of affordable housing,” FHFA Director Sandra Thompson said in the release. “Today’s RFI (request for information) seeks feedback from the public as FHFA develops proposals to make AHP funding more accessible to nonprofits, community organizations, and tribal entities.”
AHP grants have been particularly useful in helping member institutions leverage additional public and private resources for funding affordable housing projects that present underwriting challenges. These types of projects include those that help homeless and special needs populations.
During FHFA’s “FHLBank System at 100: Focusing on the Future” review, many stakeholders urged the agency to streamline the application process for AHP programs.
Each FHLBank develops user or reference guides and resources to help FHLBank members and project sponsors apply for AHP competitive application funding to assist stakeholders in providing feedback regarding the applications.
The FHFA is inviting interested parties to provide written input, feedback, and information on all aspects of this RFI no later than Aug. 19. Public input may be submitted electronically using the response form at FHFA’s website or by mail.