Affordable Housing FAQ & Webinar

last updated on Thursday, February 29, 2024 in Affordable Housing

Our Community Investment team answers common questions about your 2024 Affordable Housing Program (AHP) application during our live Q&A webinar held on February 28, 2024. View recording below. 

Speakers:
Tony Montgomery, Rental Housing Manager
Mary Jo Vogl, Homeownership Manager

Through Friday, March 29, our Community Investment team is available to answer questions about your project, the AHP scoring criteria, feasibility requirements, and application process. Contact us today at communityinvestment@fhlbdm.com or by phone at 800.544.3452, ext. 2400. We encourage you to visit our step-by-step technical assistance training page to walk through the application process and find links to required forms and documents. 

Affordable Housing Program FAQ

• Who applies for the grant? The lender, CFO, Customer? I’m new and need to understand the process of starting an application

  The person who will apply for the grant as a sponsor organization really depends on your organization, and you have the opportunity to select and identify that person in our AHP Online system. It can be the executive director of the organization. It can be a development person at the organization. Each individual organization will select which person will submit the application. Please remember, it does need to be an authorized representative of the sponsor organization.

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• We have an award currently can we still apply for an additional award for a different project or program?

  Absolutely. You can apply for AHP funds in 2024 for a different project that you're developing or constructing.

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• Are there limits to the number of applications that may be submitted with the same non-profit partner (even if there are different banks sponsoring the application)?

  There are no limits to the number of applications that an organization can submit in the 2024 AHP round.  If you submit more than one AHP application during our review process, we'll be looking to understand whether you have the capacity to complete multiple projects on the required timelines.

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• If we submit two separate applications for two different projects can I use the same member bank or do I need a separate bank for each application?

  You can use the same member for multiple applications, or you can use different members if you wish. The decision is up to the sponsor organization.  

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• Can we combine eligible programs under one AHP grant?

  No, we don't want you to combine projects under one AHP grant application. Each individual project should be submitted as a separate AHP application. If you have projects that you think are so similar that they should be combined, would really encourage you to give us a call so we can talk through the specifics of your project to see whether or not it makes sense.

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• If a project has already been awarded, can we add on to this project using AHP funds from a grant this year (or in the future)?

  No, unfortunately you cannot apply for additional funds for the same project that has already been funded.

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• How are AHP dollars awarded or disbursed to sponsor? All at one time or how?

  It varies by different project types.

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• What is the total dollars available for rental projects vs. homeownership projects?

  There’s one pool of grant funds available – both rental and homeownership projects compete for the same pool of funds. No amount is allocated for specific types of projects.

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• Do you award partial grants or is it only the full amount requested or completely denied?

  Your AHP application will be reviewed, and a decision will be made based on the amount that you requested. We will not make any adjustments to the amount requested from what was submitted for the award. Your project will either be awarded for the full amount requested or it will not be awarded for the full amount requested, no adjustments will be made.

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• Are Federal Environmental Reviews or Assessments required for projects with FHLB-DM funds? When in the application/award/development period are they due?

  We do not require an environmental review or assessment.

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• Can a project apply for AHP funds from multiple FHLBanks?

  FHLB Des Moines is one of 11 Federal Home Loan Banks in the System. At FHLB Des Moines, we do allow for projects to request and receive funds from multiple Federal Home Loan Banks, however, there are requirements on how those funds must be indicated and displayed in the AHP application.

  If you are thinking of applying to other Federal Home Loan Banks for funding for your project, or if you've already received them, it's really important that you review the Implementation Plan for the requirements on how to display that in your AHP application. Additionally, we recommend that if you are applying to other Federal Home Loan Banks, you reach out to them to verify that it's acceptable to apply to multiple Federal Home Loan Banks and receive AHP funds from multiple Banks.

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• What happens if my internet is down on May 1st and I am unable to file the application by 4:30 PM? Can I get an extension?

  The deadline for receipt of all applications from your supporting member institution is May 1st at 4:30 PM CDT. Remember, start your application early.  

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• May a development consultant, with an owner representative agreement submit an application on behalf of an eligible Sponsor?

  The final application must be submitted by an authorized representative of the sponsor organization. Our application process will allow the sponsor to allow access to a development consultant to complete most of the application process, but the final approval and submission must come from an authorized representative of the sponsor organization.

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• Can the sponsor be a for-profit company or does it have to be a not-for-profit?

  Both non-profits and for-profits can apply for HP funds. However, one of our scoring categories is around, um, non-profit sponsorship. So a for-profit company can apply, however, they would not be awarded funds under that category for sponsorship.

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• Can someone be homeless and special needs, or just one or the other?

  A household or an individual can be counted as both homeless and special needs for the purposes of the those underserved populations.

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• The Implementation Plan lists "veterans" in a separate category from other Special Needs Populations. If a person is both "elderly" and a "veteran", does that unit count for both categories? How do we document their status as a "veteran"?

  Each of those are independent categories. A person in a household could be both elderly and a veteran. Acceptable documentation for a veteran would include the DD214 or a copy of a VA identification card.

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• What documentation is needed to evidence a property is Vacant & Abandoned

  The implementation plan defines vacant and abandoned properties in specific detail and identifies different ways in which a property can qualify as vacant and abandoned.

  The documentation required to be submitted with your application will depend on which part of the definition you are utilizing to claim vacant and abandoned status. For example, one of the categories allows for public nuisance properties to count as vacant and abandoned. For a public nuisance property we'd be looking for documentation from the local municipality or other jurisdiction that supports that the property has been declared a public nuisance.

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• If an owner-occupied project serves two states, will points be awarded for both? (In-district priority points)

  No. A project is only awarded points in the state with the lowest points available. Only one set of points is awarded if you're serving multiple states.

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• Regarding the requirement of not having more than 50 percent of the project complete before money from FHLB Des Moines is awarded. Does the 50 percent apply to funds spent or project tasks?

  This year, our AHP awards will be announced in December. As we review 2024 applications, we'll be looking that projects cannot be more than 50 percent complete in December of 2024. What this means and how this applies varies by our different types of projects.

  For homeownership projects, it depends whether it's an owner-occupied rehab or a new construction project. An owner-occupied rehab project cannot be started before AHP awards are announced in December. A homeownership new construction project cannot be more than 50 percent complete in December.

  Rental projects are all treated the same and they cannot be more than 50 percent complete at the time FHLB Des Moines announces awards in December.

  How does that 50 percent complete apply to fund spent or project tasks? Each project is going to be individual and we'll be looking both at the timeline for financial expenditures as well as the overall timeline of the project. Our recommendation is if you have a project that is going to be started before AHP awards are announced in December to contact us.

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• If my project has costs that are outside of a feasibility guideline, can we still apply for funds?

  Absolutely. In our Implementation Plan, we have provided early guidelines for both rental projects and homeownership projects. If you find you have a cost that is outside of one of our guidelines, we'll ask for explanation and documentation that validates and support why the cost is outside of guidelines.

  Just because it's outside of guidelines should not deter you from submitting an AHP application.

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1. Affordable Housing Program