NOTE: THIS IS NOT AN AHP APPLICATION

Before beginning this pre-application,reviewthe current 2014 AHPImplementation Planfor further requirements of the Affordable Housing Program.

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How to Complete this Form

We recommend saving a copy of the form (Word document) to your computer desktop, then completing it as your time allows. This is a protected document. You may enter information only in the data entry points provided. Use the TAB key to move to the next data entry point, and then enter data. You may also select text boxes and checkboxes by using your mouse. By pressing the SHIFT and TAB keys together, you will move backwards to the previous data entry point. The ENTER key will allow you to enter a return in a text box. Remember to save the document regularly to ensure that you will not lose entered data.

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Return the completed AHP Rental Pre-Application ANDthe Rental Project Feasibility Workbook to Brandon Wiltgen .

Member Information

Member Bank
Contact Person
Phone Number
Email Address
Has the Member been contacted regarding submission of the application? / Yes No
Has the Member agreed to submit the application on behalf of the project? / Yes No
If no to either of the questions above, explain further:

Sponsor Information

Organization Name
Contact Person
Contact Phone
Contact Email
Sponsor’s Role
in the Project
Will a consultant assist in writing the application? / Yes No
Will any of the non-profit, housing authorities or government agencies involved in this project have an ownership interest? / Yes No
If Yes, describe the ownership interest including ownership percentages:

AHP Subsidy Information

NOTE: The maximum AHP Subsidy that can be requestedis the lesser of $500,000 per project or $30,000 per unit.

AHP Subsidy Requested
Proposed Subsidy Use
Total Project Units
Describe how the market demand for this project was determined:

Market Studies

NOTE: New construction projectsare required to provide a Market Study or suitable documentation to establish that a need exists for the proposed units with the final application.

Basic Project Information

Project Name
Scattered Site / YesNo
Project Address(es)
City / County
State / Zip Code
Provide a brief description of the project:

Development Team

Developer
Contact Person
Phone Number
Email Address
Describe projects completed by the Developer that are similar to that currently proposed for AHP funding:
List members of the development team below. Include affordable housing experience (similar in size, scope and target populations) to the one proposed for AHP funding. Include the status of the projects currently under development. / Is the Contract Executed?
Consultant / Yes
Experience:
General Contractor / Yes
Experience:

Eligibility

Has the Sponsor or any member of the development team been barred from participation by any funder, or have any outstanding compliance or performance issues with an FHLBank or another source of funding? / Yes
No
Is the Sponsor or any member of the development team involved in unresolved fair housing issues or investigation? / Yes
No
Are there any relationships between parties involved in the project (sponsor, development team, Member bank, property seller, etc.) that could pose a conflict of interest or a potential conflict(s) of interest? / Yes
No
If you answered yes to one of the questions above, disclose and explain further:

Development Schedule

Provide estimated dates for the following:

Site Control
Secure Financing
Start of Construction
Construction Completion
Full Occupancy
Are there any known barriers (funding, title, zoning, environmental, etc.) to the timely development of this project?

Feasibility

Attach completed copies of the appropriate AHP Rental Feasibility Workbook to this Pre-application.If your project includes program, office, or commercial space, be sure to complete the building information and commercial pro forma to correctly display the relationship to the housing space.

Scoring Priorities

Priority 1: Donated Property / 5 points variable

Property Donation reduces the costs of financing housing. Scoring under this priority reflects:

  • The creation of housing using a significant proportion of land or units donated or conveyed by the Federal government, any agency or instrumentality thereof, or any other party; OR
  • Land or units donated or conveyed by any other party for an amount significantly below the Fair Market Value (FMV) of the property.

The donation must be an Arm’s-length Transaction.

“Donated” means to convey land or units for a small or negligible amount, most often one dollar, which may be accompanied by the modest expenses related to the conveyance of the property for use by the project. Land leases that contain exceptionally favorable terms will also be considered on a case-by-case basis for points in this priority. A copy of the lease or the proposed lease must be included with the final application in order to receive points.

“Significant proportion” means a minimum of 20 percent (or more) of the units or land area.

“Significantly below FMV” means a discount of 50% or more of the Fair Market Value (FMV). FMV is defined generally as:

  • Value established by the city or county assessor’s office, OR
  • Market value as established by an independent appraisal of the property performed by a state certified or licensed appraiser within six months of the date of the AHP application.

If applicable, select the level of donation/conveyance that applies below. For Sections B & D include the percentage of units or land that are being donated or conveyed at a discount. The project may only receive points under one of the following categories:

  1. 100% of the units or land will be donated by any entity:
/ 100%
Yes
If yes, specify the source of the donation:OtherHUD PropertyOther Federal PropertyState Government PropertyLocal Government Property
If applicable, specify “other Federal property” or “other”
If yes, describe the terms of the donation:
  1. ≥ 20% but < 100% of the units or land will be donated by any entity:
/ %
Yes
If yes, specify the source of the donation:OtherHUD PropertyOther Federal PropertyState Government PropertyLocal Government Property
If applicable, specify “other Federal property” or “other”
If yes, describe the terms of the donation:
  1. 100% of the units or land will be conveyed by any entity into the project at a significant amount below the property’s FMV:
/ 100%
Yes
If yes, specify the discount percentage according to the following formula:
(fair market value - conveyance price)
fair market value = %
If yes, specify the source of the conveyance:HUD PropertyOther Federal PropertyState Government PropertyLocal Government PropertyOther
If applicable, specify “other”
If yes, describe the terms of the conveyance, including the property’s fair market valueand the proposed conveyance price:
Documentation to establish the property’s FMV must be included in the final application. If additional space is needed to describe the terms of the conveyance, FMV, value of the conveyance, and discount of all the properties in the project, include the information as an attachment.
  1. ≥ 20% but < 100% of the units or land will be conveyed by any entity into the project at a significant amount below the property’s FMV:
/ %
Yes
If yes, specify the discount percentage according to the following formula:
(fair market value - conveyance price)
fair market value = %
If yes, specify the source of the conveyance:HUD PropertyOther Federal PropertyState Government PropertyLocal Government PropertyOther
If applicable, specify “other”
If yes, describe the terms of the conveyance, including the property’s fair market valueand the proposed conveyance price:
Documentation to establish the property’s FMV must be included in the final application. If additional space is needed to describe the terms of the conveyance, FMV, value of the conveyance, and discount of all the properties in the project, include the information as an attachment.
  1. At least 20% of the units or land will be conveyed at market value by the Federal government or an agency or instrumentality thereof:
If yes, specify the Federal source of the conveyance:HUD PropertyOther Federal Property
If applicable, specify “other Federal property”: / 100%
Yes
Priority 2: Non-profit or Government Sponsorship / 10 points fixed

Only non-profit organizations, state or political subdivisions of a state, state housing agencies, local housing authorities, Native American Tribes, Alaskan Native Villages, or the government entity for Native Hawaiian Home Lands may be considered in awarding points. Other entities including for-profits may sponsor an application and receive AHP funding but typically cannot receive points in this category. Only a for-profit entity in which a nonprofit or government sponsor is the controlling owner of the for-profit may receive points.

As a threshold issue under the AHP regulations, the non-profit or government sponsor must have a controlling ownership interest (51% or greater) in the corporation, the partnership or, in the case of a limited partnership, a controlling interest in the general partner to receive points. The controlling interest must be for both governancein making decisions as well as the financial interest to participate in any returns provided by the project. The non-profit must be also be integrally involved in the project. Additionally, a for-profit entity in which a nonprofit or government sponsor is the controlling owner of the for-profit may also receive points.

2a. Is the project sponsored by a not-for-profit organization, a state or political subdivision of a state, a state housing agency, a local housing authority, a Native American Tribe, an Alaskan Native Village, or the government entity for Native Hawaiian Home Lands? Yes No
2b.Will the non-profit or government sponsor listed under Section I. – C. have a controlling interest in the Project? Yes No
If yes, specify ownership percentage: Sole Owner
Controlling Interest
If yes, describe the means by which the non-profit or government sponsor will have controlling interest in the ownership of the property:
Priority 3: Targeting / 20 points variable

**Applications committing to rent less than 20% of the units to households at or below 50% of the area median income are ineligible for AHP funding and will not be scored, since such projects do not meet the AHP eligibility requirements.**

IMPORTANT: The targeting must be maintained for the retention period (15 years following the physical completion date) of the AHP project.

IMPORTANT: For currently occupiedunits, the AHP income targeting commitment must allow for existing tenants’ income levels, unless you intend to displace or relocate current tenants. Acurrent rent roll must be attached to the final application for projectsin which existing tenants will remain in the project after completion.

Targeting reflects the extent to which a project creates housing for very low- and low- or moderate-income households. Rental projectswith 60% or more of the units reserved for occupancy by households with incomes at or below 50% of the area median income (AMI)shall be awarded the maximum number of points available under this priority. Refer to the scoring criteria in the Bank’s 2014 AHP Implementation Plan for further information regarding this priority.

Median income for the area, as published annually by HUD and adjusted for household size for each county or MSA, will be used to determine income. HUD limits for the Bank’s District are available on our website.If a rental project is located in a Native American Service Area, the sponsor/owner may use the greater of the Native American Housing Assistance and Self-Determination Act (NAHASDA) income guidelines or the HUD income guidelines in determining a household’s eligibility. NAHASDA guidelines are also available on the Bank’s website.

If the project receives AHP funding, the units must be occupied by tenants with move-in household incomes qualified under the targeting numbers listed belowduring the entire retention period.Staff or manager units are not exempt from AHP income targeting requirements unless such units are designated below as non-AHP-assisted units targeted above 80% of median income. AHP funding may not be used to fund construction or rehabilitation costs of units targeted above 80% AMI.

NOTE: Lease-purchase programs generally will be treated as rental projects for AHP scoring purposes. Call for more information if you plan to submit an application for a lease-purchase project.

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Rental Project Targeting Chart / Number / Percent
**Units at or below 50% of median income** / %
Units at or below 60% of median income / %
Units at or below 80% of median income / %
TOTAL Units to be assisted with AHP / %
Tenant Units above 80% of median income / %
Staff/Manager Units above 80% of median income / %
TOTAL Units in the project / 100%
Priority 4: Housing for Homeless Households / 5 points fixed

Points will be awarded for the creation of rental housing reserving at least 20% of the units for homeless households(excluding overnight shelters), the creation of transitional housing for homeless households permitting a minimum of six months occupancy, or the creation of permanent owner-occupied housing reserving at least 20% of the units for homeless households.

A project must reserve units for occupancy by homeless households. Points will not be awarded to projects merely targeting homeless persons or giving priority to the homeless persons on waiting lists. Full income verification information must be provided for all units reserved for homeless households at initial and long-term monitoring.

NOTE:For initial monitoring purposes, the pool of tenants a project with existing tenants at the time of AHP application can draw from is limited to those tenants who were homeless when they moved into the project on or after a date one year prior to the AHP application submission date (up through the date of Rental Monitoring Spreadsheet submission).

Homeless Units / Number / Percent
Number of total units to be reserved for the homeless. MUST BE AT LEAST 20% OF THE TOTAL UNITS TO SCORE. / %
For shelter projects, identify both the total number of beds and units in the project:
Total Number of Beds:
Total Number of Units:
Also, describe how the shelter will be operated (i.e., how will the property’s operations be funded, length of stay, will certain units be reserved for families or will all shelter beds be made available on an as-needed basis):
4a.Specify the definition of homeless household to be used for the proposed project, including citation of the HUD statute, regulation, or regulatory interpretation or documentation of the applicable State Housing Finance Agency definition recognizing the targeted population as homeless:
4b.List the specific referral sources that will be used to identify homeless households as potential tenants, including any written agreements in place with such referral sources:
4c.Describe how this project will prove eligibility to qualify under the “housing for homeless households” priority, including the type of documentation that will be used to verify homeless status:
4d.Explain how the homeless units will be subsidized, including commitments for operating subsidy or project-based rental assistance:
Priority 5: Promotion of Empowerment / 5 points fixed

5 points are awarded to properties committing to make available to all AHP-assisted tenants in a rental project at least two of the empowerment items from the list below.

Only programs or services that promote economic empowerment of project residents qualify for scoring points under this scoring criterion. Project programs or services that promote residents’ quality of life or personal well-being but not their economic betterment do not qualify.

5a. Will the sponsor or owner, directly or through a third-party agreement, make available to all AHP-assisted tenants in the project one or more of the following services, which promote economic empowerment?

NOTE: In the final application the Bank will require a Service Provider Agreement or Memorandum of Understanding for each third-party provider that is identified.

Education GED: / Yes No
If yes, list service provider:
Education ESL or Literacy Programs: / Yes No
If yes, list service provider:
Employment Counseling or Referral: / Yes No
If yes, list service provider:
Employment Training: / Yes No
If yes, list service provider:
Job Placement: / Yes No
If yes, list service provider:
Homebuyer Counseling: / Yes No
If yes, list service provider:
Home Employment Training: / Yes No
If yes, list service provider:
Training for Daycare Providers: / Yes No
If yes, list service provider:
Vaccination/Screening Programs (does not include blood pressure checks): / Yes No
If yes, list service provider:
Financial Planning, Credit Counseling, or Budgeting: / Yes No
If yes, list service provider:
Micro-business Lending Programs, Training, or Incubators: / Yes No
If yes, list service provider:
Welfare to Work Initiatives: / Yes No
If yes, list service provider:
Family Self-sufficiency Programs: / Yes No
If yes, list service provider:
Case Management including an economic empowerment or self-sufficiency component from the list under this priority: / Yes No
If yes, list service provider:
Life Skills Classes: / Yes No
If yes, list service provider:
Resident involvement in decision making affecting the creation or operation of the project / Yes No
If yes, list service provider:

5b. List and describe each service to be made available to tenants, including the service delivery system and how that service will assist residents to move toward better economic opportunities.

Priority 6: First District Priority / 18 points variable

A. In-District Projects:5 points will be awarded to the financing of housing located in Iowa, Minnesota, Missouri, North Dakota or South Dakota

B. Special Needs:13 points will be awarded for the financing of housing in which at least 20 percent of the units will be occupied by households with special needs, such as the elderly, mentally or physically disabled persons, persons recovering from physical abuse or alcohol or drug abuse, or persons with AIDS;or will provide financing for housing that is visitable by persons with physical disabilities who are not occupants of such housing (see the definition of “Visitable” in Definitions and Acronymsin the current 2014 AHP Implementation Plan.

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Points will be awarded for providing the housing for any combination of the above special needs. Units may not be double-counted if that unit qualifies under more than one special need category. The total for special needs units cannot exceed the total project units.