12 C.F.R. § 951.3 Operation of Program and adoption of AHP implementation plan.
Title 12 - Banks and Banking
(a) Allocation of AHP contributions—(1) Homeownership set-aside programs. (i) Homeownership set-aside programs subject to $3.0 million or 25 percent cap. Each Bank, after consultation with its Advisory Council, and pursuant to written policies adopted by the Bank's board of directors, may set aside annually, in the aggregate, up to the greater of $3.0 million or 25 percent of its annual required AHP contribution to provide funds to members participating in the Bank's homeownership set-aside programs, pursuant to the requirements of this part. In cases where the amount of homeownership set-aside funds applied for by members in a given year exceeds the amount available for that year, a Bank may allocate up to the greater of $3.0 million or 25 percent of its annual required AHP contribution for the subsequent year to the current year's homeownership set-aside programs pursuant to written policies adopted by the Bank's board of directors. A Bank may establish one or more homeownership set-aside programs pursuant to written policies adopted by the Bank's board of directors. (ii) Additional first-time homebuyer set-aside program subject to $1.5 million or 10 percent cap. In addition to the authority provided under paragraph (a)(1)(i) of this section, each Bank, after consultation with its Advisory Council, and pursuant to written policies adopted by the Bank's board of directors, may set aside annually up to the greater of $1.5 million or 10 percent of its annual required AHP contribution to provide funds to members participating in a Bank homeownership set-aside program to assist first-time homebuyers, pursuant to the requirements of this part. In cases where the amount of homeownership set-aside funds applied for by members in a given year under such a program exceeds the amount available for that year, a Bank may allocate up to the greater of $1.5 million or 10 percent of its annual required AHP contribution for the subsequent year to the current year's program pursuant to written policies adopted by the Bank's board of directors. (iii) Requirements applicable to all homeownership set-aside programs. Beginning in 2003 and for subsequent years, the maximum dollar limits set forth in paragraphs (a)(1)(i) and (a)(1)(ii) of this section shall be adjusted annually by the Finance Board to reflect any percentage increase in the preceding year's Consumer Price Index (CPI) for all urban consumers, as published by the Department of Labor. Each year, as soon as practicable after the publication of the previous year's CPI, the Finance Board shall publish notice by (2) Competitive application program. That portion of a Bank's required annual AHP contribution that is not set aside to fund homeownership set-aside programs shall be provided to members through a competitive application program, pursuant to the requirements of this part. A Bank may allocate up to the greater of $3 million or 25 percent of its annual required AHP contribution for the subsequent year to the current year's competitive application program. Beginning in 2002 and for subsequent years, the maximum dollar limit set forth in this paragraph (a)(2) shall be adjusted annually by the Finance Board to reflect any percentage increase in the preceding year's Consumer Price Index (CPI) for all urban consumers, as published by the Department of Labor. Each year, as soon as practicable after the publication of the previous year's CPI, the Finance Board shall publish notice by (b) AHP implementation plan—(1) Adoption of plan. Each Bank's board of directors shall adopt a written AHP implementation plan which shall set forth: (i) The applicable median income standard or standards, adopted by the Bank consistent with the definition of median income for the area in §951.1; (ii) The requirements for any homeownership set-aside programs adopted by the Bank pursuant to paragraph (a)(1) of this section; (iii) The Bank's project feasibility guidelines, adopted consistent with §951.5(b)(2); (iv) The Bank's schedule for AHP funding periods; (v) Any additional District eligibility requirement, adopted by the Bank pursuant to §951.5(b)(10); (vi) The Bank's scoring guidelines, adopted by the Bank consistent with §951.6(b)(4); (vii) The Bank's time limits on use of AHP subsidies and procedures for verifying compliance upon disbursement of AHP subsidies pursuant to §951.8; (viii) The Bank's procedures for carrying out its monitoring obligations under §§951.10(c) and 951.11; and (ix) Any requirements, including time limits, for re-use of repaid AHP direct subsidy, adopted by the Bank pursuant to §951.12(e)(2). (2) No delegation. A Bank's board of directors shall not delegate to Bank officers or other Bank employees the responsibility for adopting the AHP implementation plan, or any subsequent amendments thereto. (3) Advisory Council review. Prior to adoption of the Bank's AHP implementation plan, and any subsequent amendments thereto, the Bank shall provide its Advisory Council an opportunity to review the plan and any subsequent amendments, and the Advisory Council shall provide its recommendations to the Bank's board of directors. (4) Submission of plan amendments to the Finance Board. A Bank shall submit any amendments of its AHP implementation plan to the Finance Board within 30 days after the date the Bank's board of directors approves such amendments. (5) Public Access. A Bank's initial AHP implementation plan, and any subsequent amendments, shall be made available to members of the public, upon request. (c) Conflicts of interest—(1) Bank directors and employees. Each Bank's board of directors shall adopt a written policy providing that if a Bank director or employee, or such person's family member, has a financial interest in, or is a director, officer, or employee of an organization involved in, a project that is the subject of a pending or approved AHP application, the Bank director or employee shall not participate in or attempt to influence decisions by the Bank regarding the evaluation, approval, funding, monitoring or any remedial process for such project. (2) Advisory Council members. Each Bank's board of directors shall adopt a written policy providing that if an Advisory Council member, or such person's family member, has a financial interest in, or is a director, officer, or employee of an organization involved in, a project that is the subject of a pending or approved AHP application, the Advisory Council member shall not participate in or attempt to influence decisions by the Bank regarding the approval for such project. (3) No delegation. A Bank's board of directors shall not delegate to Bank officers or other Bank employees the responsibility to adopt conflicts of interest policies. (d) Reporting. Each Bank shall provide such reports and documentation concerning its Program as the Finance Board may request from time to time. [62 FR 41828, Aug. 4, 1997, as amended at 64 FR 24027, May 5, 1999; 65 FR 5419, Feb. 4, 2000; 65 FR 8263, Feb. 18, 2000; 66 FR 50301, Oct. 3, 2001; 67 FR 18804, Apr. 17, 2002; 67 FR 58981, Sept. 19, 2002; 70 FR 9511, Feb. 28, 2005]
Title 12: Banks and Banking
PART 951—AFFORDABLE HOUSING PROGRAM
§ 951.3 Operation of Program and adoption of AHP implementation plan.
