Homeownership Project Administration

For awarded Competitive Affordable Housing Program homeownership applications, it is the responsibility of the housing organization (AHP Sponsor) to meet project administration requirements. The guides below are available to help you navigate the administration process in AHP

For questions regarding the project administration process or documents required, please contact our Community Investment Department at communityinvestment@fhlbdm.com or 800.544.3452, ext. 2400.

Homeownership Post Application

  • Income Guidelines, Workbook, and Income and Purchase Price Limits

    An Income Calculation Workbook must be completed for each assisted household. If
    applicable, a Certificate of Zero Income is provided for adult members of a household with no income. Refer to the AHP/DP Income Calculation Guidelines for help in determining qualifying income for a household. Income Guidelines and forms have been updated effective April 1, 2019. Use the updated Guidelines and forms for income calculation of households enrolled after that date. When determining income eligibility and purchase price limits for residences refer to the applicable limits in the AHP Implementation Plan, and as posted below.

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  • Feasibility Workbook

    A Feasibility Workbook must be completed for each assisted unit in a project.

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  • Homeownership Certification Forms
  • 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.

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  • Recapture or Subordination

    To release a lien once the retention period has ended, or to determine the amount of repayment during the five-year retention period, a title company should work with the Lender named on the Deed Restriction, or the Beneficiary on a Deed of Trust (a retention form not currently in use). For forms which show a Beneficiary instead of a Lender, please work with our Community Investment Department by sending a copy of the recorded Agreement to communityinvestment@fhlbdm.com.

    In March 2018, FHLB Des Moines temporarily suspended the requirement for repayment of AHP/Down Payment Program subsidy awards in connection with the sale or refinance of an owner-occupied unit during the term of the homeownership Retention Agreement.

    Effective January 1, 2020, the Repayment Requirement will be reinstated.

    FHLB Des Moines has established new procedures and updated forms for lien releases, repayment or subordination of liens.

    Please begin using these procedures and forms in the event of the sale or refinance of owner-occupied residences assisted with an AHP/Down Payment Program grant.

    New procedures and forms are provided for:

    View All Forms And Procedures

    *Forgiveness of repayment: If a borrower sells their home to a low-to-moderate income household, their subsidy does not need to be repaid and the lien may be released. Additionally, subsidy repayment is terminated after any event of foreclosure, transfer by deed in lieu of foreclosure, an assignment of a Federal Housing Administration first mortgage to HUD, or death of the AHP/Down Payment Program assisted homebuyer.

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