Retention Agreements (Deed Restriction)

A legally enforceable Retention Agreement in the amount of the AHP subsidy used to assist each assisted owner-occupied unit is required. The retention period is five years. During that five-year term a portion of the subsidy may be subject to recapture by the Federal Home Loan Bank of Des Moines if the assisted unit is sold or refinanced. The forms provided below are for use on fee simple land and on tribal trust land. Additional forms are available on request for mobile homes or for use with land trusts. The member or the project sponsor as their designee will be responsible for servicing the Deed Restriction and should be named as Lender.

The following changes apply only to owner-occupied rehabilitation projects.

Effective January 1, 2020, the FHLB Des Moines member institution or project sponsor of a Competitive Affordable Housing Project (AHP) may cease requiring a Retention Agreement (Deed Restriction) on owner-occupied rehabilitation projects. For this project type, FHLB Des Moines will cease enforcing the retention requirement of the AHP Subsidy Agreement entered into by the member and sponsor.

This change does not apply to any AHP project or award that included the purchase of a residence.

For Active Projects

Applicable projects will no longer require retention on the assisted unit. In lieu of the Deed Restriction, an assisted household may acknowledge receipt of a subsidy award using the form below. This document can be provided to the Bank as part of the disbursement documentation for the assisted unit.

Acknowledgement Form

For Completed Units Still Under Retention

AHP sponsor organizations may forgive the remaining amount of a subsidy award on any applicable unit still subject to retention by filing a release of the Deed Restriction entered into by the assisted household.