Affordable Housing Program (AHP)

Description
The Federal Home Loan Bank of Indianapolis will conduct one or more district-wide AHP competitions each year. Application deadlines will be announced in the applicable year’s Implementation Plan.

In each offering, the credit-approved applications receiving the highest ratings per the AHP scoring system as established by the AHP implementation plan will be recommended to the board of directors for approval. Details on this scoring system are contained in the current year’s Implementation Plan.

Purpose
AHP subsidies can be used for acquisition, construction or rehabilitation of affordable housing.

Application
Applications for AHP subsidies must be submitted by the stated deadlines. Only applications received at the FHLBI offices before close of business on the date of the deadline will be scored. The Board shall approve applications in descending order starting with the highest scoring application until the total funding amount, except for any amount insufficient to fund the next highest scoring application, has been allocated. The Board shall also approve at least the next four highest scoring applications as alternates, and, within one year of approval, may fund such alternates if any previously committed AHP subsidies become available.

Funding options
Pursuant to FIRREA, "each Bank shall establish an Affordable Housing Program to subsidize the interest rate on advances to members" for qualifying activities. AHP funds may be obtained through a subsidized advance described below or a direct subsidy. The direct subsidy is not considered an advance.

a. Rate-subsidized Advances
    A subsidized advance is an advance to a member at an interest rate reduced
    below the FHLBI's cost of funds, by use of a subsidy. Members interested in
    utilizing a subsidized advance should contact the community investment
    department at (317) 465-0371.

b. Direct Subsidy
    The AHP direct subsidy represents a cash payment by the FHLBI to the
    member, which in turn passes the monies to eligible AHP participants to
    assist in, for example, the payment of home mortgage closing costs.

Commitment fee
None.

Prepayment
Subsidized advances may be subject to a prepayment fee as described in the Affordable Housing Program advance terms sheet. Notify the FHLBI by 2 p.m. Indianapolis time for next-day prepayment.

For additional information on how to apply for AHP subsidies click here.

Updated: February 25, 2008