What is EBPs retention period and requirements?
Grants are subject to a five-year retention agreement in the form of the Bank-supplied mortgage and note (see the Forms and Applications page) to ensure that properties are retained as affordable housing. Members must ensure that each unit purchased is subject to these documents, requiring that: • The Bank is given notice of any sale or refinancing of the unit occurring prior to the end of the five-year retention period. • In the case of a sale prior to the end of the five-year retention period, an amount equal to the pro rata share of the EBP subsidy that financed the unit reduced 20 percent for every year the seller owned the unit shall be repaid to the Bank. Recaptured EBP funds are from any net gain realized upon the sale of the unit after deduction for sales expenses, unless the purchaser is a very low- to moderate-income household, as defined by the Federal Housing Finance Board and determined by the Bank. • In case of a refinancing prior to the end of the five-year retention per
