Affordable Housing Program (AHP)

2014 AHP Online Application Available

The Seattle Bank is pleased to announce the availability of approximately $4.9 million for the 2014 AHP. The 2014 AHP online application is now available. Applications are due to the Seattle Bank by 4:00 p.m. Pacific Time on August 1, 2014. Applications and required attachments received after this time will not be accepted.

Please refer to the following resources for more information about the 2014 AHP application and the application process:

  • 2014 AHP Funding Round. This informational page on our website provides an overview of the application timeline, process, and required information.
  • The Seattle Bank’s archived web seminar series, The 2014 AHP Application Process, provides detailed information regarding the 2014 AHP application and scoring criteria, and how to avoid common mistakes that may hinder your project’s competitiveness.
  • The 2014 AHP Implementation Plan. This document, which is available on our website, details the scoring criteria and other requirements for the 2014 AHP funding round.

Since 1990, the Seattle Bank’s AHP has provided more than $154.7 million of subsidy to support the acquisition, development, or rehabilitation of more than 28,000 units of affordable rental and owner-occupied housing for very low-, low-, and moderate-income households.

AHP subsidy may be used in a variety of ways, including to:

  • Reduce mortgage principal
  • Provide gap financing
  • Cover downpayment and closing costs
  • Lower the interest rate on a loan

Each year, the Seattle Bank’s Affordable Housing Advisory Council reviews the AHP scoring criteria to ensure the program continues to meet affordable housing needs across the district. Following is a summary of key changes to our AHP for 2014.

AHP Scoring Criteria – New for 2014:

  • Second District Priority - The definition of a “farmworker” has been changed to meeting a “Federal or state definition” from “seasonal and/or migrant.”
  • Effectiveness - The points range for this category changed to 0-6 from 1.25-6. The AHP subsidy “ceiling” for this category increased to $30,000 from $18,000.
  • Community Stability Points for “Reduction of Substandard Properties” - The required attachment is now a “substandard properties form” from a local jurisdiction to verify that the building being rehabilitated or replaced by the project is substandard; previously a certification was required.
  • Tied scores - A tie in score will be resolved according to which project has higher points in the following categories: Second District Priority, Community Stability, or the First District Priority (listed in the order that points are considered).

AHP Feasibility Criteria – New for 2014:

  • Replaced FHA Mortgage Limits and $200/square foot maximum development cost benchmark with development costs provided by RSMeans Company as the benchmark for determining the reasonableness of project costs.
  • Introduced a hard cost contingency benchmark range of 5 percent to 10 percent of hard costs for new construction and 7 percent to 20 percent of hard costs for rehabilitation projects.
  • Introduced a soft cost contingency benchmark not to exceed 20 percent of soft costs.
  • Introduced a soft cost benchmark not to exceed 30 percent of total development costs for projects financed by low income housing or historic tax credits, 25 percent of total development costs for new construction, and 20 percent for rehabilitation.
  • Will exclude the developer fees from total development costs when calculating the developer fee as a percentage of total development costs.
  • Will critically scrutinize developer fees for rehabilitation projects where there is not a transfer of ownership or where there is a transfer of ownership to a related party.
  • Introduced an additional cash flow benchmark that cash flow may not exceed 15 percent of effective gross income.
  • Will limit capitalized operating reserves to 12 months of operating expenses and hard debt service. Operating and replacement reserves will be excluded from the calculation of operating expenses in the prior calculation.
  • Will disallow operating reserves on the pro forma if there are operating reserves capitalized on the development budget.

The definition of Project Sponsor has been changed to clarify the roles of the lead sponsor.