FHFA simplifies process for affordable housing subsidies

The Federal Housing Finance Agency has announced its issuance of Advisory Bulletin 2024-05, "Affordable Housing Program: Determining the Need for Affordable Housing Program Subsidy In Rental Projects," that simplifies the process for project sponsors to receive Federal Home Loan Bank (FHLBank) funds for affordable housing projects.

The Advisory Bulletin reinforces the importance of scrutinizing funding requests, using rigorous feasibility guidelines based on sound reasoning, to ensure that Affordable Housing Program (AHP) funds support the projects most in need. The bulletin provides for a streamlined compliance process and eliminates uncertainty for project sponsors about the amount of their AHP award. It also provides further clarity to the FHLBanks on determining the need for an AHP subsidy when a rental project includes capitalized reserves and supportive services.