Federal Home Loan Bank Affordable Housing Program: Compliance Requirements

Submit Periodic Progress Reports (PPR) to the sponsoring FHLBank on a bi-annual schedule from the award date until project completion and final disbursement.

Deadline: Due bi-annually until project completion; typically within 30-45 days of reporting period end based on AHP Implementation Plans

Source: FHLBCIN AHP Compliance Information; standard across all FHLB districts per 12 CFR 1291

Submit Initial Monitoring documentation to the bank at time of disbursement for owner-occupied projects, or nine months after final disbursement for rental projects, certifying project completion and continued compliance with program requirements.

Deadline: Initial Monitoring due at disbursement for ownership projects; within 9 months after final disbursement for rental projects

Source: FHLBCIN AHP Compliance Information §5.3

For rental projects, submit Long-Term Monitoring documentation annually throughout the 15-year retention period, confirming continued affordability compliance, income eligibility of residents, and adherence to all AHP commitments.

Deadline: Annual Long-Term Monitoring submissions due each year on or before anniversary date of project completion; typically by January 31 or as specified by bank

Source: FHLBCIN AHP Compliance Information §5.3; 12 CFR 1291.67

For owner-occupied units receiving AHP subsidy, ensure the property is subject to a deed restriction requiring the bank be notified of any sale, transfer, or refinancing during the five-year retention period. Upon sale or refinancing, repay the AHP subsidy amount to the bank unless a statutory exception applies.

Deadline: Notice required prior to or at time of sale, transfer, assignment, or refinancing; repayment due within 30 days of the triggering event

Source: 12 CFR 1291.1(a)(2)(i)-(ii)

Disburse the awarded AHP subsidy within one year of the award announcement. If funds are not disbursed within this timeframe, the award may be withdrawn and funds reallocated.

Deadline: Subsidy must be fully disbursed within 12 months of award announcement date

Source: FHLBank Chicago AHP Program guidelines §4.13; standard FHLB requirement

Ensure the project complies with all applicable federal and state fair housing laws, accessibility regulations (ADA, Section 504), and environmental statutes throughout the project term.

Deadline: Compliance required from award announcement through end of retention period; violations must be reported within 10 days of discovery

Source: FHLBank Chicago AHP Program guidelines §4.1; 12 CFR 1291.1(a)(1)

Maintain and provide all documentation requested by the bank to verify project compliance with commitments made in the approved AHP application, including evidence of continued financial and operational feasibility.

Deadline: Documentation must be provided upon request throughout the retention period; no later than 30 days of request unless extended by bank

Source: FHLBCIN AHP Compliance Information; FHLBank Chicago AHP Program guidelines §4.9

For rental projects, maintain affordability restrictions throughout the 15-year retention period following project completion. Units must remain affordable and occupied by eligible very-low-, low-, or moderate-income households as specified in the subsidy agreement.

Deadline: Affordability must be maintained continuously from date of project completion through end of 15-year retention period

Source: 12 CFR 1291; FHLBank Chicago Retention/Recapture Agreement §2-3; FHLBCIN AHP Compliance Information

If the project also received Low-Income Housing Tax Credits (LIHTC), provide prompt written notice to the bank if the project experiences material and unresolved non-compliance with LIHTC income targeting or rent requirements.

Deadline: Notice must be provided immediately upon discovery of non-compliance; no later than 10 business days

Source: FHLBank Chicago Retention/Recapture Agreement §5.3