§ 951.15 - Affordable Housing Reserve Fund.

(a) Reserve Fund—(1) Deposits. If a Bank fails to use or commit the full amount it is required to contribute to the Program in any year pursuant to § 951.2, 90 percent of the unused or uncommitted amount shall be deposited by the Bank in an Affordable Housing Reserve Fund established and administered by the Finance Board. The remaining 10 percent of the unused and uncommitted amount retained by the Bank should be fully used or committed by the Bank during the following year, and any remaining portion must be deposited in the Affordable Housing Reserve Fund.

(2) Use or commitment of funds. Approval of applications for AHP subsidies sufficient to exhaust the amount a Bank is required to contribute pursuant to § 951.2 shall constitute use or commitment of funds. Amounts remaining unused or uncommitted at year-end are deemed to be used or committed if, in combination with AHP subsidies that have been returned to the Bank or de-committed from canceled projects, they are insufficient to fund:

(i) The next highest scoring AHP application in the Bank's final funding period of the year for its competitive application program; or

(ii) Pending applications for funds under the Bank's homeownership set-aside programs;

(iii) Project modifications approved by the Bank pursuant to the requirements of this part.

(3) Carryover of insufficient amounts. Such insufficient amounts as described in paragraph (a)(2) of this section shall be carried over for use or commitment in the following year in the Bank's competitive application program or homeownership set-aside programs.

(b) Annual statement. By January 15 of each year, each Bank shall provide to the Finance Board a statement indicating the amount of unused and uncommitted funds from the prior year, if any, which will be deposited in the Affordable Housing Reserve Fund.

(c) Annual notification. By January 31 of each year, the Finance Board shall notify the Banks of the total amount of funds, if any, available in the Affordable Housing Reserve Fund.