What happens if the owner of project wants to alter the rank of the AHP subordinate lien?
• • Both the FHLB-NY and the Member must consent to such a request. In such cases, FHLB-NY staff must receive an updated sources and uses of funds statement, along with a revised operating pro forma. If the new financial statements confirm the rationale for a restructuring of the project’s debt, as well as the project’s continued need for AHP subsidy, the FHLB-NY may, in its sole discretion, authorize the Member, as the AHP lien holder, to execute a subordination agreement.
