Affordable Housing Program


FHLB Chicago member banks can partner with community developers and public agencies to apply for Affordable Housing Program (AHP) funds on behalf of community projects, which the FHLB Chicago awards through a competitive process.
The AHP subsidy is in the form of a grant from the FHLB Chicago to a member. These grants are awarded to the highest scoring projects, determined eligible under FHLB Chicago guidelines, and are awarded until the funds are exhausted.
The competitive round is held annually and AHP application materials are made available approximately 60 days prior to the application deadline. Community Investment staff holds workshops for members and sponsoring organizations prior to each competitive round to provide applicants with technical assistance.
Please check our events calendar for registration information and available dates.

Eligibility Requirements

Applications will be evaluated to determine whether they meet the eligibility requirements per 12 CFR 1291.5(c) of the AHP Regulation, including:
  • The project must be either an owner-occupied project or a rental project, serving income-eligible households.
  • Applications must demonstrate project feasibility and the need for AHP subsidy. The review will include an analysis of the sources and uses of funds, project costs, and operational feasibility. Relevant factors include, but are not limited to, applicable financial ratios, market demand, and other non-financial project characteristics.
  • AHP subsidies for approved projects must be likely to be drawn down within one year of the date of approval of the application.
  • AHP assisted projects must be retained as affordable (via a recorded retention mechanism) for five years for owner-occupied projects and fifteen years for rental projects.
  • A project's sponsor must be qualified and able to perform its responsibilities as committed to in the AHP application.
  • The project must comply with applicable federal and state fair housing and accessibility laws and regulations.

Application Scoring 

Applications that meet the eligibility requirements will be scored on a 100 point scoring system based on nine criteria:
  • Use of donated, discounted or conveyed government-owned or other properties
  • Sponsorship by a not-for-profit organization or government entity
  • Income targeting
  • Housing for homeless households
  • Promotion of empowerment
  • First District Priority (criteria selected annually)
  • Second District Priority (criteria selected annually)
  • AHP subsidy per unit
  • Community stability 
Scoring criteria are explained in detail in the FHLB Chicago's annual AHP Implementation Plan. Applications achieving the highest scores will be awarded funds until all available AHP funds for a given competitive round are exhausted. The next four highest scoring applications will be placed in reserve and may be awarded funds should funds become available prior to the next round of funding. Projects awarded funds will be monitored by the FHLB Chicago throughout the retention period (five years for owner-occupied projects; 15 years for rental projects) to ensure that they remain in compliance with AHP regulations and with the commitments made in the AHP application.

Repayment of Subsidy

Under certain circumstances, members and project sponsors or owners may be required to repay AHP subsidies to the FHLB Chicago. Checks should be made payable or endorsed to the FHLB Chicago and mailed to the following address with a completed repayment worksheet:
Federal Home Loan Bank of Chicago
Community Investment Group
200 E. Randolph Drive
Chicago, IL 60601