Thursday, January 21, 2010

FHLB of Topeka announces funding

Note press release from the FHLB of Topeka:

Record amount of Housing and Economic Development grants available

Due to strong earnings in 2009, we are pleased to announce a record amount of funding available through our housing and community development programs in 2010 through our member banks, thrifts and credit unions. To find an FHLBank member institution in your community, search our list of current members. We will offer $22.4 million in Affordable Housing Program funds, more than four times the amount awarded in 2009. Funding for our Homeownership Set-aside Programs is triple the 2009 amount with $5.6 million available.

AFFORDABLE HOUSING PROGRAM (AHP)
Application Deadlines | Round One - March 1; Round Two – September 1
Amount Available | $22.4 million overall; $11.2 million per round; $450,000 maximum per application
Online Application Available | Round One – Early February; Round Two – Early August
Application Awards | Round One – Late June; Round Two – Mid-December

We will offer the AHP in two rounds in 2010. Additional changes for the year include:

* Expanded homeownership project rates and term guidelines
* An update to the definition of “homeless” to agree with the most recent HUD definition
* Scoring priority modifications (District Priority 1 decreased to 20 points from 32.5 points; District Priority 2 increased to 17.5 points from 5 points)
* Some modified guidelines used to evaluate the project’s feasibility and need for subsidy

For full detail on these changes, visit our AHP Web page.

HOMEOWNERSHIP SET-ASIDE PROGRAMS (HSP)
Funding Available | March 1, April 1, May 1, June 1, July 1 and August 1
Amount Available | $5.6 million overall; $1.1 million each in March and in April; $838,000 each month in May through August
Funding Limits | $50,000 per member in first two months ($25,000 more per month starting in May); $4,000 per household
Registration and HSP Materials Available | Early February

The HSP provides a pool of first-come, first-served funding for the Rural First-time Homebuyer Program (RFHP), Targeted Ownership Program (TOP), Rural Disaster Assistance and Mortgage Refinancing Program (MRP). Some guidelines for the program were expanded this year similar to the expansions listed above for AHP. Visit the HSP page for more information.

Monthly offerings will be handled as they were in 2009. If funding requests exceed the amount of funds available on the first day of any of the monthly HSP offerings, requests will be chosen using a random selection process. If funding falls within the allotment, requests will be considered on a first-come, first-served basis. All funding requests submitted on the first day of the offering will have an equal chance of being approved. The time of submission the first day of each monthly offering does not impact whether a request is selected.

The Mortgage Refinancing Program, a new part of the HSP, can be used to help refinance first mortgages at risk of foreclosure through closing cost and principal reduction assistance. In order to qualify, the household must obtain refinancing through a member participating in an eligible targeted refinancing program. For program guidelines, please see our HSP page.

UPCOMING EDUCATIONAL OPPORTUNITIES
Contact the Housing and Community Development department at 866.571.8155 to discuss any of our programs. Our staff stands ready to provide technical assistance as you prepare your application(s). We will also offer Webinars in the coming months about HSP and AHP. Watch our Web site for more information.