Tuesday, February 14, 2006
Affordable Housing Program
We learned yesterday that the Federal Home Loan Bank of Chicago's Affordable Housing Program will have about $30 million available for 2006. This is down 25% from last year. The impact will be felt in the Downpayment Plus program and in the Competitive AHP for project developers. Currently several members of the Coalition are utilizing the Downpayment Plus program. Our guess, and this is not based on any facts or knowledge, is that reservations may run out in September or October. Due to the recent growth of the program, that may even occur earlier. Of course, every year is different, so we will see how the program progresses as the year moves forward.
This may also have an impact on the awards available to developers. The maximum award will remain at $600,000 per project, but the overall amount available will be down from last year. Also keep in mind that last year saw an increase in projects receiving funds even though there were fewer funds available. This may have been due to a lowering of the project maximum or simply lower requests from developers.
This may also have an impact on the awards available to developers. The maximum award will remain at $600,000 per project, but the overall amount available will be down from last year. Also keep in mind that last year saw an increase in projects receiving funds even though there were fewer funds available. This may have been due to a lowering of the project maximum or simply lower requests from developers.
