What are the Member’s responsibilities in securing the AHP subsidy during the construction phase if AHP funds are used to construct or rehabilitate homes for subsequent sale to eligible households?
• • The federal AHP regulation merely requires an owner-occupant to execute an AHP subordinate lien with the Member at time of closing. The AHP regulation does not address how AHP funds should be secured during the construction phase of development. Therefore, the Member may, in their sole discretion, require that the project sponsor or developer execute a legally-enforceable mechanism that will adequately secure the AHP subsidy during the construction phase and facilitate a foreclosure action if the project is not brought to completion or encounters some other event of regulatory non-compliance. The FHLB-NY has not designed standard agreements for this situation. The Member has the right to develop appropriate legal agreements. Once executed and recorded, the Member may release a pro rated share of the AHP lien once an owner-occupant executes the standard AHP retention agreements (see AHP-111 and AHP-112) at time of closing. Otherwise, the Member may keep the existing mechanism in pla
