In the event of a sale, transfer, or assignment of title or deed of the assisted unit or a refinance where there is no subordination prior to the expiration of the Retention Agreement, it may be necessary to repay to FHLB Des Moines (the Bank) the unforgiven portion of the lien from any net proceeds upon sale, transfer, assignment of title or deed, or refinance.
The unit is sold, transferred or assigned to another low-or-moderate income household as determined by proxy or by income;
The remaining pro rata subsidy amount is $2,500 or less; or
The net proceeds from the sale are $2,500 or less.
If an exception applies, the Bank’s lien may be released without repayment.
Household's investment, including any capital improvements made by the owner, will reduce net proceeds and may allow for total grant forgiveness.
Use the “Repayment Calculation Form” to calculate the amount of repayment due. Repayment Calculation Forms must be approved by the Bank prior to closing. All forgiveness and repayment amounts must also be approved by the Bank prior to remitting repayment to the Bank.
Please allow up to five business days for an initial response to a forgiveness or repayment request.
Repayment Calculation Form
Instructions for Repayment Calculator
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