Affordable Housing Program Implementation Plan Summary of Changes

January 27, 2026

The following lists material changes for the 2026 Affordable Housing (AHP) and Welcome Home Programs. Please see a complete copy of the 2026 AHP Implementation Plan (IP) for all changes and detailed program requirements. FHLB will also cover these changes in the AHP trainings to be held in April 2026. 

General Updates to the Implementation Plan

  • AHP application dates: May 8 - July 8, 2026
  • Maximum interest rate on first mortgages – 9.00 percent
  • Site control for rental projects must be established through November 30 of the year in which the AHP application is submitted 
  • AHP funds may not be used in projects that require medical licensure
  • Increased allowances for AHP subsidy per unit/bed

Scoring Criteria

  • Member Financial Participation – A number of changes. See IP for more details 
  • High Volume Projects – Increased by three points and is now bifurcated between new construction and rehabilitation/acquisition-only
  • Project Sponsorship – Removed the Marketing/Outreach Activities subcategory
  • Community Stability – Updated the qualifying minimum for the substantial rehab of units to $19,948

Definitions

  • Added definition of “Fully-indexed interest rate” to the AHP Definitions section
  • Added a definition of “Loan fees”
  • Expanded definition of “Special needs” to include “Formerly incarcerated” 

Project Feasibility Guidelines

  • Total project cost limit per bed – $90,000
  • Specified that the loan fees evaluated in AHP projects include all origination fees and any other fees paid to the lender, and increased the cap from one percent to three percent
  • Removed the maximum limit to the annual replacement reserve feasibility parameter 
  • Removed annual replacement reserves from the calculation of the limit to capitalized costs
  • Increased minimums for operating costs per unit/bed

Requirements for the Welcome Home Program

  • Maximum interest rate on first mortgages – 9.00 percent
  • Opening Date: April 6, 2026
  • Added a reference to SOFR within the definition of “Fully-indexed interest rate”

Please contact the Housing and Community Investment department at 888-345-2246 with any questions.