Affordable Housing Program (AHP) General Fund

The Affordable Housing Program (AHP) General Fund is administered by the Federal Home Loan Bank of Chicago (FHLBank Chicago) to support the development and preservation of affordable housing throughout the Bank’s district through partnerships with member financial institutions and qualified project sponsors. The program provides forgivable grant funding that enables member institutions to collaborate with for-profit and nonprofit developers, community organizations, public agencies, tribal governments, and housing authorities on projects serving low- and moderate-income households. The AHP General Fund is structured as a competitive annual funding round intended to expand affordable housing opportunities through acquisition, construction, and rehabilitation activities for both rental and owner-occupied housing. Under the program, AHP subsidies may be used to finance acquisition, new construction, and rehabilitation costs associated with affordable housing developments. Eligible owner-occupied housing projects must serve households with incomes at or below 80 percent of the area median income, while eligible rental housing projects must ensure that at least 20 percent of units are occupied by and affordable to households earning at or below 50 percent of area median income. Funding is awarded as a forgivable grant provided by FHLBank Chicago through an eligible member institution to the sponsoring organization. The maximum subsidy available for a single project is limited to $2,000,000 or 75 percent of the total project cost, whichever amount is lower. The 2026 AHP General Fund application cycle opened on May 4, 2026 and closes on June 12, 2026 at 5:00 p.m. Central Time. FHLBank Chicago conducts the application round annually, making the opportunity recurring in nature. Application materials are typically posted approximately 60 days before the application deadline, and Community Investment Operations staff provide webinars and technical assistance before each competitive round. Webinar announcements and registration information are distributed through the Community First newsletter. Organizations seeking funding must coordinate with an eligible FHLBank Chicago member institution because applications must be jointly submitted by the member and the project sponsor through the AHP Online project management system. Applications are evaluated using a 100-point scoring system outlined in the AHP Implementation Plan and Guide for Sponsor Applicants. To qualify for consideration, applicants must demonstrate project eligibility, operational feasibility, development feasibility, and the need for AHP subsidy. Sponsors must also demonstrate that they possess the organizational capacity and qualifications necessary to successfully complete the proposed project and fulfill all obligations committed to in the application. Additional compliance requirements include adherence to applicable federal and state fair housing laws and accessibility regulations. Projects funded through the program are subject to long-term affordability retention requirements, with owner-occupied projects required to remain affordable for five years and rental projects required to remain affordable for fifteen years. Award recipients must execute a Subsidy Agreement involving the member institution, the sponsor, and FHLBank Chicago before subsidy disbursement can occur. The program imposes ongoing monitoring and compliance responsibilities on both the sponsoring organization and the participating member institution. Compliance reporting begins shortly after award announcement and continues throughout the project retention period. FHLBank Chicago reserves the right to reevaluate projects during the disbursement process to verify continued financial feasibility, operational feasibility, and subsidy need. Significant changes to project budgets, operating assumptions, funding sources, or scoring commitments may jeopardize awarded funding. Disbursement requests require collaboration between the member institution and the project sponsor and must include documentation sufficient for FHLBank Chicago to verify project compliance and ongoing eligibility. Approved AHP subsidies must generally be disbursed within one year of the award announcement. In certain circumstances, repayment of subsidy funds may be required. Questions regarding the program, eligibility requirements, compliance expectations, or technical assistance may be directed to FHLBank Chicago Community Investment by email at ahp@fhlbc.com or by phone at 312-565-5824. The program represents an ongoing annual affordable housing funding opportunity intended to support affordable housing production and preservation throughout the FHLBank Chicago service region.

Demonstrate strong project feasibility, operational sustainability, and documented need for subsidy funding. Maintain consistency between proposed project budgets, operating assumptions, and scoring commitments because changes after award may jeopardize funding. Ensure affordability compliance and retention obligations are fully documented.