Affordable Housing Program (AHP) General Fund
Through the AHP General Fund, the Federal Home Loan Bank of Chicago empowers its member institutions to partner with local developers and organizations—fueling the creation and preservation of affordable housing with forgivable grants that strengthen communities and open doors to opportunity.
Through the Affordable Housing Program (AHP) General Fund, our member institutions partner with for- and not-for-profit developers, community organizations, units of government, public housing authorities, and tribal governments to apply for annual grants to subsidize the acquisition, new construction, and/or rehabilitation of affordable rental or owner-occupied housing. AHP subsidy is provided as a forgivable grant from the Federal Home Loan Bank of Chicago, through a member, to a project sponsor.
The 2025 AHP General Fund competitive round closed on Friday, June 20, 2025. Award recipients have been notified.
AHP General Fund Overview
View All Policy & Forms- The maximum per-project subsidy is $2,000,000 or 75% of the total project cost, whichever is less.
- Members may apply for up to 25% of the subsidy announced for the application period.
- To participate in the AHP General Fund, the member and project sponsor must jointly submit an application through AHP Online, FHLBank Chicago’s web-based project management system. Members access AHP Online through eBanking—FHLBank Chicago’s member-only website—and sponsors access AHP Online through FHLBank Chicago’s public website.
- FHLBank Chicago holds its competitive application round annually.
- Community Investment Operations staff offer webinars for members and sponsor organizations prior to each competitive round to provide applicants with general information. Webinar dates and registration information will be announced in the Community First® newsletter. Technical assistance is also available upon request by contacting Community Investment.
- Application materials are posted to the website approximately 60 days prior to the application deadline.
- Eligibility requirements and feasibility guidelines are published in the AHP Implementation Plan and Guide for Sponsor Applicants (available on the AHP Program Policy & Forms page).
- AHP subsidies must be used for one of two broad purposes:
- To finance the acquisition, construction, and/or rehabilitation of owner-occupied housing for households with incomes at or below 80% of area median income; or
- To finance the acquisition, construction, and/or rehabilitation of rental housing for projects where at least 20% of the units must be occupied by, and affordable to, households with incomes at or below 50% of area median income
- Applications must demonstrate project eligibility, development and operational feasibility, and the need for AHP subsidy.
- AHP-assisted owner-occupied projects must be retained as affordable housing for five years; rental projects must be retained as affordable housing for 15 years.
- The 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.
- Scoring guidelines are published in the AHP Implementation Plan and Guide for Sponsor Applicants (available on the AHP Program Policy & Forms page). Applications that meet the eligibility requirements will be evaluated using a 100-point scoring system.
- A Subsidy Agreement between the member, the sponsor, and FHLBank Chicago must be executed and all conditional award requirements must be met prior to disbursement of the subsidy.
- Monitoring responsibilities are shared by the member and project sponsor.
- Compliance reporting begins shortly after award announcement and is required throughout the project’s retention period.
- All representations and commitments made in the approved AHP application will be continually evaluated and confirmed through project completion reporting (or, in some cases, through long-term monitoring).
- Any changes to the project’s sources and uses, operating pro forma, and/or scoring commitments may jeopardize the AHP award.
- For more information on member and project sponsor roles and responsibilities across the project life cycle, refer to the AHP Online: Guide for Project Management, available on the AHP Programs Policy & Forms page.
- Prior to each disbursement, the AHP regulations require FHLBank Chicago to review project documentation to:
- Verify that the project is in compliance with the commitments made in the approved application or subsequent approved modifications
- Confirm the project's continued need for the AHP subsidy
- Reevaluate the current financial and operational feasibility of the project
- Collaboration between the project member and sponsor is necessary to complete the disbursement request form and provide the required documentation. Documentation requirements are based on the project type.
- The member and sponsor should contact FHLBank Chicago Community Investment before submitting a disbursement request form.
- AHP subsidy for approved projects must be disbursed within one year of the award announcement.
- Under certain circumstances, members and project sponsors or owners may be required to repay AHP subsidies. To initiate repayment, members should submit a completed repayment worksheet to [email protected]. After review, the repayment will be drafted from the members' Daily Investment Deposit (DID) account.
AHP Impact Stories
The André Apartments Brings Housing and Early Learning Under One Roof
The André Apartments is a 38-unit affordable housing development in Madison, Wisconsin, created with support from our member IFF and project sponsor Movin’ Out, Inc. With nine units specifically reserved for residents with disabilities, the building pairs thoughtfully designed homes with an on-site Early Childhood Education center operated by Red Caboose. The project received an Affordable Housing Program (AHP) subsidy and now serves as a vibrant space where families, children, and individuals of all abilities can thrive. Watch the video to hear how it’s making a difference.
Torrence Place Delivers Housing, Health, and Hope to Lansing, Illinois
Torrence Place offers 48 units of affordable, rental housing specifically targeting Veterans and individuals with disabilities. The project was awarded an Affordable Housing Program (AHP) subsidy of $720,000 through our member IFF and their project sponsor Full Circle Communities, Inc., and it opened its doors to residents this spring.
Watch the video to learn how these incredible partners worked with Christian Community Health Center to integrate healthcare and affordable housing in support of the building's residents and the greater community of Lansing, Illinois.
Prairie Haus Expands Access to Affordable, Supportive Housing in New Glarus
