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In 2009, the Seattle Bank will offer at least $2.6 million in AHP subsidy. A total
of approximately $4.0 million may be available, depending upon the amount of subsidy
returned to the program from projects that did not go forward within the AHP time limit
requirements.
AHP subsidy may be used in a variety of ways, including to:
- Reduce mortgage principal
- Provide gap financing
- Cover down payment and closing costs
- Lower the interest rate on a loan
In 2008, the Seattle Bank awarded $4.4 million in AHP subsidy, and the minimum score for competitive AHP projects was 77 points. In 2007, the bank awarded $4.66 million in AHP subsidy, and the minimum score for competitive projects was 75 points.
Since 1990, the AHP has provided approximately $140.0 million in subsidy to help create more than 27,000 units of rental and owner-occupied housing for low- and moderate-income households.
Member and Sponsor Responsibilities
Seattle Bank members and project sponsors both play a role in the AHP application
process.
- Project sponsors must partner with a Seattle Bank member to submit an AHP application.
Sponsors should use the months before the AHP application due date to establish
a relationship with the member to ensure a successful submission of the application.
Find a member
financial institution.
- The member must underwrite the project proposed in the AHP application to the standard
they would use if providing a loan to the project. Additionally, members must review
the project's schedule to reasonably assure that it will be ready to draw AHP subsidy
within one year of application approval and reasonably assume that the project
will be complete and occupied within three years of application approval. The Seattle Bank fully supports a member's
decision to decline an AHP application if the member has not had sufficient time
to review, or questions the project's feasibility and/or ability to comply with
all the commitments made in the application.
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