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Equity Grants
Equity Grants
Equity grants are made in the form of cash contributions, gifts or sale of property
at reduced cost.
Criteria
- To be eligible for equity grants, projects must contribute to local housing and
commercial revitalization efforts.
- Recipients may be required to meet other criteria, such as bringing property up to code
standards or selling or renting property at specified rates.
Uses
- Equity grants strengthen collateral and improve project cash flow.
- Uses vary among grantors, programs, and projects.
Structure
- Equity grants are often used with other enhancements.
- Grants are usually negotiated with the grantor.
AFFORDABLE HOUSING PROGRAM (AHP)
Federal Home Loan Banks (FHLB)
Federal Home Loan Banks make grants or loans to member institutions, which then make
funds available to borrowers for projects.
Eligibility
- Lenders must be members of the Federal Home Loan Bank.
- Projects may be for purchase, construction or rehabilitation of single-family or
multi-family affordable housing units.
- Borrowers must be very low-, low- or moderate-income, with preference given to projects
that serve the greatest percentage of very low-income households.
- Projects must support the priorities of the Federal Home Loan Bank.
Program
- Grants are made for down payments, principal reduction or interest rate buy-downs.
- Loans with favorable terms are often structured to be forgiven if project criteria is
met.
- Competition for funding is held in each of the ten Federal Home Loan Bank Districts, and
awards are made to lenders' who score the most points according to FHLB criteria,
objectives and priorities.
- Priorities include projects that support owner-occupied affordable housing; projects
that will have at least 20 percent of their units occupied by very low-income households;
purchase or rehabilitation of housing owned by government entities or nonprofit
organizations; projects that empower residents in ways that help meet critical urban or
rural housing needs; and projects that provide permanent housing for the homeless.
- Objectives include projects that promote long-term retention of affordable housing and
community stability, projects that involve Nthe community, and innovative projects.
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