[Federal Register Volume 60, Number 185 (Monday, September 25, 1995)]
[Rules and Regulations]
[Pages 49327-49331]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23390]
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FEDERAL HOUSING FINANCE BOARD
12 CFR Part 960
[No. 95-26]
Amendment of Affordable Housing Program Regulation
AGENCY: Federal Housing Finance Board.
ACTION: Final rule.
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SUMMARY: The Federal Housing Finance Board (Board) is finalizing the
provisions of a proposed rule published in the Federal Register on July
28, 1995, amending, in part, the Board's regulation governing the
operation of the Affordable Housing Program (AHP). The amendments
contained in the proposed rule, and now adopted in final form,
authorize a Federal Home Loan Bank (Bank) to set aside a limited
portion of its available AHP subsidies to assist first-time homebuyers
pursuant to a program meeting specific requirements set forth in the
final rule. In addition, the final rule permits a Bank to establish a
homeownership set-aside program with requirements different from those
specifically set forth, subject to prior approval of the Board.
EFFECTIVE DATE: The final rule is effective on October 25, 1995.
FOR FURTHER INFORMATION CONTACT: Brandon B. Straus, Attorney-Advisor,
Office of General Counsel, (202) 408-2589, or Diane E. Dorius, Deputy
Director, Office of Housing Finance, (202) 408-2576, Federal Housing
Finance Board, 1777 F Street, N.W., Washington, DC 20006.
SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Background
Section 10(j)(1) of the Federal Home Loan Bank Act (Bank Act)
requires each Bank to establish a program to subsidize the interest
rate on advances to members of the Federal Home Loan Bank System (Bank
System) engaged in lending for long-term, low- and moderate-income,
owner-occupied and affordable rental housing at subsidized interest
rates. See 12 U.S.C. 1430(j)(1). The Board is required to promulgate
regulations governing the Program. See id. Sec. 1430(j)(9); 12 CFR part
960.
Under the Board's AHP regulation, each Bank must make a specified
annual contribution to fund its AHP. See 12 CFR 960.10. During each
calendar year, each Bank accepts applications for funds from its
members during two of four quarterly funding periods, or ``rounds.''
See 12 CFR 960.4. Applications are reviewed and recommended, and AHP
funds are awarded to applicants through a competitive scoring process
set forth in the AHP regulation. See 12 CFR 960.5. AHP funds are
awarded to the applicants whose applications score the highest among
all the applications received by the Bank in that funding round. See
id.
The Board believes that promoting homeownership for first-time
homebuyers is a significant part of the mission of the Bank System. In
furtherance of that goal, the Board and the Banks recently joined a
partnership agreement to promote the President's National Homeownership
Strategy to expand homeownership to millions of households by the year
2000. The Board believes that permitting the Banks to direct a portion
of their AHP contribution to assist low- and moderate-income, first-
time homebuyers is consistent with its commitment to the National
Homeownership Strategy. Accordingly, on July 28, 1995, the Board
published in the Federal Register a proposal to amend the AHP
regulation to authorize a Bank to set aside a portion of its AHP
contribution to assist low- and moderate-income, first-time homebuyers
to purchase homes. See 60 FR 38768 (July 28, 1995).
II. Summary of Proposed Rule
The proposed rule generally would authorize each Bank to establish
a Matched Savings First-Time
[[Page 49328]]
Homebuyers' Initiative (Initiative), according to the specific
requirements set forth in the proposed rule, under which the Bank would
set aside up to the greater of $1 million or 10 percent of its annual
required AHP contribution to be used as matching funds for first-time
homebuyers' savings deposits maintained with a Bank member. The
proposed rule also would authorize the Banks to establish first-time
homebuyer programs with different requirements from those applicable to
an Initiative (non-conforming homeownership set-aside programs), with
prior approval of the Board.
Under the proposed rule, each dollar of a participating household's
savings would be matched by the member with up to three dollars of AHP
funds, but no more than $5,000, to be used by the household to pay for
downpayment and closing costs in connection with its first-time
purchase of a one-to-four family, owner-occupied property (including a
condominium or cooperative housing unit) used as its primary residence.
Each Bank would have discretion to determine the appropriate ratio of
AHP funds-to-savings of a participating household (with a maximum of
three-to-one), which ratio shall apply to all households participating
in the Bank's initiative.
Under the proposed rule, members could be pre-approved for
participation in an Initiative if they have: (1) Established a
dedicated savings account program for eligible households; (2)
established a first-time homebuyer policy that defines the
qualifications for being a ``first-time'' homebuyer and that includes
financial and other incentives for such first-time homebuyers; and (3)
have established or sponsor a homebuyer counseling program.
Under the proposed rule, in order to enroll initially in the
program, a household would be required to: (1) Have an income at or
below 80 percent of the area median income; (2) meet the requirements
of the member's first-time homebuyer policy, (3) open a dedicated
savings account with a participating member and agree to a savings
schedule; (4) enroll in a homebuyer counseling program; and (5) agree
to obtain mortgage financing from the member for the purchase of the
home. If, after six months from enrollment, a household were
progressing satisfactorily according to its agreed-upon schedule of
savings, the Bank would be required to reserve matching AHP funds, as
targeted in the savings schedule, in the name of the household, and the
household would be notified of acceptance into the Initiative. The
household, however, could not draw down the matching funds unless it
had saved for a minimum period of 10 months. The proposed rule would
require a household to use matching funds to purchase a home within one
year of acceptance in the Initiative (which occurs six month's after
initial enrollment with the member), or a longer period if the Bank
determined that reasonable circumstances justified extension beyond one
year.
Under the proposed rule, a home purchased by a participating
household with funds received under an Initiative must be subject to a
deed restriction, ``soft'' second mortgage, or other legally
enforceable mechanism, pursuant to the requirements set forth in the
proposed rule, that would enable the Bank to recapture from the member
or directly from the seller a pro rata portion of those funds if the
home were sold by the initial household to a household that is not low-
or moderate-income, within 5 years (or longer, at the discretion of the
Bank) from the date of purchase by the participating household. The
proposed rule would allow for Bank waiver of the recapture requirement
if its imposition would cause undue hardship on the seller.
Under the proposed rule, a Bank would make matching funds available
on a rolling, first come, first-served basis. A Bank could make
available up to $1 million of additional AHP funds from the next year's
Initiative set-aside if demand for funds under the Initiative exceeded
the amount set aside in the current year.
III. Analysis of Public Comments and Summary of the Final Rule
The Board requested public comment, generally, on all aspects of
the proposed rule, and specifically requested comment on four specific
issues addressed in the proposal: (1) Whether a 5-year retention period
for housing assisted under an Initiative is appropriate; (2) whether a
Bank should be permitted to commit its AHP contributions from future
years if demand for Initiative funds in a given year exceeds that
year's set-aside; (3) whether non-conforming set-aside programs should
be limited to programs assisting first-time homebuyers or should be
permitted to assist other kinds of activities related to homeownership
that promote the National Homeownership Strategy; and (4) whether the
funding limit established by the proposed rule is appropriate
generally, and whether this limit should apply also to non-conforming
set-aside programs.
General Comments
The Board received 32 comment letters on the proposed rule. Twenty-
six commenters generally supported the proposal. Six commenters,
including one Bank, two Bank members, two not-for-profit housing
organizations and a real estate company did not support the set-aside
of AHP funds for specific purposes. In general, these commenters
opposed the proposal because it would reduce the amount of funds
generally available to finance other affordable housing projects and
activities that would not qualify under the set-aside.
The Board believes limited set-asides are an appropriate way for
the Banks to direct AHP funds to specific activities that promote the
goals of National Homeownership Strategy and are consistent with the
goals of the AHP. Further, the authority for the Banks to establish
set-asides for homeownership programs is entirely voluntary. Therefore,
a Bank need not establish such a program if it determines that a set-
aside is not appropriate in its district. Accordingly, the Board is
finalizing the set-aside proposal set forth in the proposed rule with
the following changes, taking into account comments received from the
public.
Long-Term Retention
Nineteen commenters supported a 5-year retention period for housing
assisted under an Initiative. Among these commenters were seven Banks,
seven Bank members, one banking trade association, one Bank Advisory
Council, one Community Development credit union, and one city. Among
the reasons cited by the supporters of a 5-year retention period were
that a 5-year retention period: allows a household to build equity in a
home; provides a greater incentive for a homeowner to improve his or
her property, whereas a longer retention term removes that incentive;
reduces the monitoring requirements for the Bank member and the Bank;
and eases the potential recapture responsibility of Bank members.
Three commenters supported a retention period longer than 5 years.
One commenter supported a 10-year retention period to prevent real
estate speculation. Another commenter suggested that a 10-year period
would not place an undue monitoring burden on the Banks and would
result in a more equitable distribution of AHP funds. One commenter
supported a 15-year period, citing the scarcity of resources for low-
income housing.
Based on commenters' general support for a 5-year retention period,
[[Page 49329]]
the final rule adopts this as the minimum requirement. Further, one
Bank member suggested that the provision in the proposed rule exempting
a household from the recapture requirement if it sells its home to an
income-eligible household within the five-year period creates an
unnecessary burden on the member to have to determine the income
eligibility of such future home purchasers. The Board also notes that
even in cases where the purchasing household does qualify as income-
eligible, the subsidy initially received by the seller is not passed on
to the purchaser. Therefore, the final rule requires that in all cases
where a participating household sells its home prior to the end the 5-
year retention period, the household must repay a pro rata portion of
the funds it received under the Initiative.
Commitment of AHP Contributions From Future Years
Of the 14 comments addressing this issue, the majority specifically
supported the provision in the proposed rule permitting a Bank to
commit its AHP contributions from future years if demand for Initiative
funds in a given year exceeds that year's set-aside. Several commenters
noted concern about the potential oversubscription of an Initiative.
In order to address this issue, the final rule requires each Bank
to establish a policy that ensures that the Bank enrolls no more
households in its Initiative than the Bank can fund with the amount of
funds set aside by the Bank for the Initiative in a given year. Under
such a policy, the Bank should make projections of the amount of funds
necessary to fund all the households enrolled in an Initiative in a
given year, so that all enrolled households receive funds according to
the agreed-upon savings goals established upon enrollment. The final
rule also provides that in cases where demand for Initiative funds in a
given year exceeds the amount of set-aside funds available for that
year, the Bank may: (1) Make available up to an additional $1 million
from the next year's set-aside of funds under such initiative; and/or
(2) establish a waiting list for households meeting the requirements
for enrollment, provided that the Bank clearly inform households on the
waiting list that there is no guarantee that they will be enrolled.
Non-Conforming Homeownership Set-Aside Programs
The Board specifically requested comment on whether other,
nonconforming set-aside programs proposed by a Bank under
Sec. 960.5(g)(2) of the proposed rule should be limited to programs
that assist first-time homebuyers, or whether it would be practicable
to broaden the language of the proposal to allow for assistance to be
provided to other categories of activities related to homeownership
that promote the National Homeownership Strategy, such as improving and
rehabilitating existing homes and encouraging homeownership strategies
that revitalize distressed communities.
Approximately one-third of the commenters supported a homeownership
set-aside that did not meet the specific requirements of the matched
savings model. Some cited the need for rehabilitation as a community
revitalization strategy and/or the need for additional alternatives to
meet the goals of the National Homeownership Strategy. Eighteen
commenters were opposed to limiting the set-asides to first-time
homebuyers, citing the need for renovation of existing homes and
revitalization of communities. Two commenters, a Bank and its Advisory
Council, supported permitting Banks to set aside AHP funds for disaster
relief or other programs to address local needs.
The Board believes that it is appropriate to limit the set-aside to
uses consistent with the National Homeownership Strategy. Therefore,
the Board has decided to retain the first-time homebuyer requirement
for Initiatives established under Sec. 960.5(g)(1). However, the final
rule provides that nonconforming homeownership set-aside programs
established by a Bank under Sec. 960.5(g)(2) may include homeownership
programs that meet those goals of the National Homeownership Strategy
that, in the Board's determination, are consistent with the goals and
requirements of section 10(j) of the Bank Act, such as providing funds
for the purchase or rehabilitation of homes by income-eligible first-
time homebuyers and homeowners currently living in overcrowded
conditions, unsanitary or unsound premises, unsafe neighborhoods, or
neighborhoods that do not offer adequate economic or educational
opportunities.
Amount of Available Funds
The Board specifically requested comment on whether the funding
limit of the greater of $1 million or 10 percent of a Bank's annual
required AHP contribution: (a) Is appropriate generally; and (b) should
apply to other, non-conforming set-aside programs under proposed
Sec. 960.5(g)(2), or whether the funding limits for such other programs
should be left to the discretion of the Board. Among the eight
commenters addressing this issue, there was general support for the
funding limit as applied to an Initiative, but there was not a clear
consensus on whether this limit should apply also to a nonconforming
set-aside program. One commenter supported allowing the Board to
determine the limit for nonconforming homeownership set-aside programs,
and two commenters suggested allowing the Banks to determine the limit.
The final rule provides that total funding for an Initiative
established by a Bank under Sec. 960.5(g)(1) shall be limited to the
greater of $1 million or 10 percent of a Bank's annual required AHP
contribution. Funding limits for nonconforming homeownership set-aside
programs proposed by a Bank under Sec. 960.5(g)(2) shall be subject to
Board approval.
Comments on Other Provisions of the Proposed Rule
Two commenters suggested that the Board should define ``first-time
homebuyer,'' rather than permitting each member to establish its own
definition, in order to ensure uniform application of the definition.
Commenters also suggested that the definition include victims of
domestic violence and single heads of households who are in the process
of dissolving their marriages and that the definition be consistent
with the requirements governing federal tax-exempt mortgage revenue
bonds (MRB). See 26 U.S.C. 143(d). In order to establish uniformity
within and among the Bank's Initiatives, the Board is adopting the
definition of ``first-time homebuyer'' contained in the Cranston-
Gonzalez National Affordable Housing Act of 1990, see Pub. Law 101-625,
sec. 104(14), 104 Stat. 4079, 4087 (Nov. 28, 1990) (codified at 42
U.S.C. ch. 130). This definition is consistent with the requirements
governing MRBs.
Two Bank members suggested that households with sufficient existing
savings should be permitted to receive matching funds without being
required to participate in a savings program over time. One not-for-
profit housing organization specifically supported the minimum time
requirement for savings as a mechanism to help avoid defaults by
households that rush into home purchases. The final rule retains the
proposed provisions governing the required minimum period for savings.
Nothing in the final rule would preclude a household from using
existing savings to make deposits in its dedicated savings account
established with the member. Further, a program
[[Page 49330]]
with alternative savings requirements could be considered by the Board
as a nonconforming homeownership set-aside program proposed by a Bank
under Sec. 960.5(g)(2).
Some commenters cited the need for flexibility in the savings goal,
since some households may experience circumstances that limit their
capacity to save on a regular schedule, such as seasonal employment.
The final rule clarifies that a household need not make equal deposits
of funds at uniform intervals in order to meet the requirement that it
make satisfactory progress towards meeting its savings goal. The final
rule requires that a household make satisfactory progress in making
deposits in its dedicated savings account in a manner that is
consistent with the goals of its agreed-upon savings schedule.
Five commenters, including three Bank members, suggested that the
requirement that a household purchase a home within one year of
acceptance into an Initiative does not allow sufficient time for a
household to meet its savings goal and then locate and close on a
suitable home. Commenters recommended allowing longer periods ranging
from 18 to 36 months. Accordingly, the final rule changes the deadline
for the use of Initiative funds to 2 years from the date the Bank
reserves matching funds in the name of the household.
One commenter stated that the requirement in the proposed rule that
a Bank member verify a household's progress in meeting its savings
schedule every six months from the date of each household's acceptance
into the Initiative would create an undue burden on the member. The
commenter suggested that the member be allowed to set two dates at six-
month intervals during the year on which to verify the progress of all
households in that member's program. The final rule reflects this
change.
Two commenters suggested that the maximum amount of matching funds
per household permitted under the proposed rule would be too low,
especially in areas with high housing costs. Because a program with a
higher matching ratio or a higher dollar limit could be considered for
approval by the Board under Sec. 960.5(g)(2), the Board has retained
the matched savings requirement for an Initiative in the final rule.
One commenter requested that the proposed rule permit a
participating household to obtain a mortgage through an MRB program or
from a not-for-profit organization that provides lower-cost funds. The
Board believes that member involvement in mortgage lending for
participating households encourages members to be more active in the
AHP and in financing affordable housing generally. Lending under an
Initiative also will help members meet their obligations under the
Community Reinvestment Act. A number of MRB programs use financial
institutions to make loans under those programs. Therefore, a member
would not be precluded from using an MRB program or collaborating with
another funding source to fund a loan it makes to a household under an
Initiative. Further, a nonconforming set-aside program allowing the use
of a funding source in place of a member could be considered by the
Board under Sec. 960.5(g)(2). Therefore the final rule retains the
provision of the proposed rule requiring a household receiving funds
under an Initiative to agree to obtain mortgage financing from the
member with whom it maintains its dedicated savings account. The final
rule adds new provisions requiring that mortgage loans provided by
members in connection with the use of funds provided under an
Initiative shall not be priced above the market rate for a loan of
similar maturity and terms.
IV. Regulatory Flexibility Act
The final rule applies only to the Banks, which do not come within
the meaning of ``small entities,'' as defined in the Regulatory
Flexibility Act (RFA). See 5 U.S.C. 601(6). Therefore, in accordance
with section 605(b) of the RFA, see id. Sec. 605(b), the Board hereby
certifies that this final rule will not have a significant economic
impact on a substantial number of small entities.
List of Subjects in 12 CFR Part 960
Banks, banking, Credit, Federal home loan banks, Housing.
Accordingly, chapter IX, title 12, subchapter E, Code of Federal
Regulations, is hereby amended as follows:
SUBCHAPTER E--AFFORDABLE HOUSING
PART 960--AFFORDABLE HOUSING PROGRAM
1. The authority citation for part 960 is revised to read as
follows:
Authority: 12 U.S.C. 1422a, 1422b, 1430(j).
2. Section 960.4 is amended by revising the first sentence of
paragraph (a) to read as follows:
Sec. 960.4 Applications for funding.
(a) Except as provided in Sec. 960.5(g), the Program is based on
District-wide competitions administered by the Board. * * *
* * * * *
3. Section 960.5 is amended by adding a new paragraph (g) and by
revising paragraph (a)(1) to read as follows:
Sec. 960.5 Project scoring and funding.
(a) General. (1) Each Bank will evaluate all applications received
pursuant to Sec. 960.4(a) from its members that satisfy the use
provisions identified in Sec. 960.3(b).
* * * * *
(g) Set-aside programs. Programs established by a Bank under this
paragraph (g) shall be priority projects under section 10(j)(3) of the
Federal Home Loan Bank Act. For purposes of this paragraph (g), the
term ``first-time homebuyer'' means a first-time homebuyer as defined
in 42 U.S.C. 12704(14).
(1) Programs exempt from prior Board approval. Without the prior
approval of the Board, a Bank may set aside annually up to the greater
of $1 million or 10 percent of its annual required Affordable Housing
Program contribution to fund a matched savings first-time homebuyers'
initiative that meets all of the following requirements:
(i) Announcement of available Bank funds. The Bank shall notify its
members of the amount of annual funds available under the initiative;
(ii) Pre-approval of member participants. The Bank shall approve a
member's participation in the initiative if the member has:
(A) Established a savings account program offering dedicated
savings accounts to eligible households;
(B) Established a first-time homebuyer policy that includes
financial or other incentives for first-time homebuyers;
(C) Established a homebuyer counseling program based on those
offered by or in conjunction with a not-for-profit housing agency or
other recognized counseling organization;
(D) Committed that the Bank or member participant will be entitled
to recapture of the equivalent amount of the matching funds, as
provided in paragraph (g)(1)(xi) of this section;
(iii) Approval of initial enrollment of households. Subject to a
Bank's policy established under paragraph (g)(1)(iv) of this section,
the Bank shall approve the initial enrollment, through the approved
member participant, of a household as a potential beneficiary in the
initiative, if the household:
(A) Is low- or moderate-income, as defined in Sec. 960.1(g), and is
a first-time homebuyer, as of the date of enrollment;
[[Page 49331]]
(B) Has opened a dedicated savings account with the member
participant and established a schedule of savings into the account;
(C) Has enrolled in a homebuyer counseling program established by
the member participant that is based on those offered by or in
conjunction with a not-for-profit housing agency or other recognized
counseling organization; and
(D) Has agreed to obtain mortgage financing from the member
participant for the purchase of a home;
(iv) Establishment of Bank policy on enrollment. The Bank shall
establish a policy that ensures that the Bank enrolls no more
households in its initiative than the Bank can fund with the amount of
funds set aside by the Bank for the initiative in a given year;
(v) Bank reservation of matching funds six months after initial
enrollment. The Bank shall reserve, in the name of the household,
matching funds as targeted in the household's schedule of savings for a
given year, and shall notify the member participant and household of
such reservation, if, six months after the initial enrollment of the
household (or, in cases of households enrolled after being on a waiting
list under paragraph (g)(1)(x)(B)(2) of this section, and who, for a
period of at least six months, have contributed to a dedicated savings
account with a member participant), the member participant certifies to
the Bank that the household is progressing satisfactorily by
participating in the homebuyer counseling program and depositing funds
to its dedicated savings account consistent with the goals of its
agreed schedule of savings;
(vi) Verification of household progress. The Bank shall require the
member participant to verify, semi-annually, each participating
household's satisfactory progress in completing the homebuyer
counseling program and making deposits to its dedicated savings account
consistent with the goals of its agreed schedule of savings;
(vii) Approval of matching funds drawdown. The Bank shall approve a
request from a member participant for matching funds, and shall credit
such funds to the member participant's account, if the member
participant certifies to the Bank that:
(A) The household made deposits to its dedicated savings account
consistent with the goals of its agreed schedule of savings for a
minimum of ten months;
(B) Closing on the sale of a home to the household is scheduled to
occur within two years of the date the Bank reserved matching funds in
the name of the household, or a longer period if the Bank determines
that reasonable circumstances (such as unforeseen hardship, inability
to locate a suitable home, or delays in closing on the sale) justified
extending such time period for the use of the funds;
(C) The household has completed the required homebuyer counseling
program;
(D) The household has received the financial or other incentives
committed by the member participant pursuant to its first-time
homebuyer policy, and the interest rate on the mortgage loan provided
by the member to the household does not exceed the market rate for a
loan of similar maturity and terms;
(E) A deed restriction, ``soft'' second mortgage or other legally
enforceable mechanism exists on the household's home that entitles the
Bank or member participant to recapture of the equivalent amount of the
matching funds, as provided in paragraph (g)(1)(xi) of this section;
(viii) Amount of matching funds. Each Bank shall determine the
amount of matching funds that it will provide to households receiving
funds under its initiative, which amount shall not exceed the lesser of
three times the amount of a household's savings in its dedicated
savings account or $5,000;
(ix) Eligible uses of funds. Households receiving funds under an
initiative may use such funds only for the payment of downpayment or
closing costs in connection with the household's purchase of a one-to-
four family, owner-occupied residential property (including a
condominium or cooperative housing unit) to be used as its primary
residence;
(x) Availability of funds. In making initiative funds available:
(A) The Bank shall make such funds available on a rolling, first-
come, first-served basis;
(B) In cases where demand for initiative funds in a given year
exceeds the amount of set aside funds available for that year, the Bank
may:
(1) Make available up to an additional $1 million from the next
year's set-aside of funds under such initiative; and/or
(2) Establish a waiting list for households meeting the
requirements for enrollment, provided that the Bank clearly inform
households on the waiting list that there is no guarantee that they
will be enrolled;
(xi) Long-term requirement--recapture of funds upon resale. The
Bank shall require that a home purchased using funds under an
initiative be subject to a deed restriction, ``soft'' second mortgage
or other legally enforceable mechanism that requires that, if the home
is sold prior to the end of a period of not less than 5 years (or such
longer period as the Bank may determine in establishing its initiative)
from the date of purchase by the initial household:
(A) The Bank or its designee be given notice of the sale; and
(B) The seller be required to repay a pro rata share, except for de
minimis amounts determined by the Bank, of the funds provided under the
initiative, reduced for every year the seller owned the home, to be
repaid from any net gain from the sale of the home after deduction for
sales expenses, and to be returned to the Bank to be made available to
other households under the Initiative or to other Affordable Housing
Program projects, except that the Bank in its discretion may waive such
repayment requirement if its imposition would cause undue hardship on
the seller, as defined by the Bank;
(xii) Bank implementation procedures. Each Bank may establish its
own procedures for further implementation of the requirements of this
paragraph (g)(1).
(2) Nonconforming homeownership set-aside programs. A Bank may set
aside a portion of its annual required Affordable Housing Program
contribution, in an amount approved by the Board, to implement a
homeownership program that does not meet the requirements of paragraph
(g)(1) of this section, provided the program satisfies the requirements
of 12 U.S.C. 1430(j); meets those goals of the National Homeownership
Strategy that, in the Board's determination, are consistent with the
goals of the AHP; and receives the prior approval of the Board.
Dated: September 14, 1995.
By the Federal Housing Finance Board.
Bruce A. Morrison,
Chairman.
[FR Doc. 95-23390 Filed 9-22-95; 8:45 am]
BILLING CODE 6725-01-U