Both homeownership and rental initiatives
can qualify for Affordable Housing Program (AHP) funding,
so long as they meet the following criteria.
Wherever mentioned in this AHP information, area median
income means the area median income as defined by the
U.S. Department of Housing and Urban Development (HUD).
Web site for the latest median income guidelines.
HUD Multifamily Tax Subsidy Limits (MTSP)
For initiatives funded using housing tax credits, the income limits used for 50 and 60 percent of the area median income will be the HUD Multifamily Tax Subsidy Project limits as adjusted for household size. If your initiative is located outside of New England, please call the Housing and Community Investment department at the Federal Home Loan Bank of Boston so that we can work with you to apply the appropriate income limits for your initiative.
Eligible Homeownership Initiatives
AHP funding can be used to finance homeownership initiatives
for households with incomes at or below 80 percent of
the median income for the area. Examples of eligible
uses include single-family houses, subdivisions, cooperatives,
condominiums, down-payment and closing-cost assistance,
and mobile-home parks.
Eligible Rental Initiatives
AHP funding can be used to finance rental housing in
which at least 20 percent of the units are for households
with incomes that do not exceed 50 percent of the median
income for the area. Examples of eligible uses include
multifamily rental housing, single-room-occupancy (SRO)
housing, and mutual housing.
Eligible Uses of Funds
Program funds may be used only for the direct costs
of producing or financing affordable housing. Uses
include acquisition, construction, rehabilitation
costs, related soft costs, interest-rate buy-downs,
down-payment and closing-cost assistance, and matched-savings
programs. Only those units that are affordable, as
defined by AHP regulations, are eligible for funding.
Supportive services and commercial space associated
with a development are ineligible for AHP funding.
The development sponsor must pass the benefits of the
AHP funding through to the initiative and/or end user.
The developer/sponsor cannot retain any portion of the
AHP funds as profit or for the purpose of additional
development (excluding approved development fees). AHP
funds may not be "recycled," used for capitalized
operating reserves, or for nonresidential space.