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Funded with 10 percent of the Seattle Bank's annual net income, the Affordable Housing Program (AHP) offers grants and subsidized advances to member financial institutions and their housing sponsors to stimulate affordable rental and homeownership opportunities for low- and moderate-income households.
AHP subsidies have been used in a variety of ways, including to:
- Reduce mortgage principal
- Fund rehabilitation and new construction
- Cover down payment and closing costs
- Lower the interest rate on a loan
Since its inception in 1990, the AHP has supported, on average, approximately 60 projects a
year and awarded about $7,000 for each unit developed.
Member and Sponsor Responsibilities
Seattle Bank members and housing sponsors both play a role in the AHP application process.
- 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 funds within one year 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.
- Housing 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 institution.
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