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FEDERAL HOME LOAN BANK BOARD
71.001 HOUSING OPPORTUNITY ALLOWANCE PROGRAM (HOAP (Pronounced "HOPE"))
FEDERAL AGENCY: FEDERAL HOME LOAN BANK BOARD
where annual incomes are too great to allow them to participate in
TYPES OF ASSISTANCE: Direct payments for specified uses. USES AND USE RESTRICTIONS: The assistance, which is in the form of a $20 allowance for a period of not more than 60 months, can be applied only to the contractually required monthly payment on a 25 to 30 year first mortgage for the purchase of a single family home or condominium unit. Eligible families may not have incomes in excess of the HOAP regular family income limits. The assistance can be obtained through loans originated by any participating member of the Federal Home Loan Bank Systems. Borrowers may not use HOAP to refinance their present homes. Rental properties are not eligible.
Applicant Eligibility: Any family consisting either of 2 married persons living together or a head of household with at least 1 dependent person may apply for a HOAP allowance. The applicant applies for HOAP at any participating member of the Federal Home Loan Banks System. The participating member will determine the applicant's eligibility; income does not exceed specified HOAP regular family income limit and is insufficient to warrant making of the requested loan, but for availability of HOAP allowance. Also, security property meets program requirements: single family home or condominium unit. Beneficiary Eligibility: Same as applicant eligibility. Credentials/Documentation: The HOAP application forms must be completed and the applicant must certify to the accurate and truthful representation of all information contained therein. To substantiate the family income a copy of the most recent Federal Income Tax Return is required where possible. APPLICATION AND AWARD PROCESS:
Preapplication Coordination: Applications are coordinated by participating members of the Federal Home Loan Bank System, The Federal Home Loan Banks, and the FHLBB. Information is available from the FHL Banks. Participating members are granted allocations of allowances to make available to applicants based on their share of mortgage lending on single family homes within FHL Bank Districts.
Application Procedure: The applicant requests a mortgage loan and a HOAP allowance from a participating member of the FHL Bank System. The member completes the application form and determines applicant's eligibility. If applicant is eligible, property qualifies, and other credit determinations are satisfactory, member may make applicant mortgage loan and provide HOAP allowance. HOAP eligibility and actual granting of loan and allowance are separate functions.
Award Procedure: Participating members obtain allocation of allowances from FHL Banks. FHL Banks receive allowances from FHLBB.
Range of Approval/Disapproval Time: Varies with participating members.
Appeals: Applicants for HOAP allowances may appeal to Supervisory Agents of FHL Banks. Members of FHL Bank System may do likewise.
Formula and Matching Requirements: No more than 20 percent of available funds may be allocated in any 1 of the 12 FHL Bank Districts. There are no matching requirements or resources. Length and Time Phasing of Assistance: Allowance allocated to member institutions must be committed to mortgage loans within 60 days, unless a shorter time period is specified by the FHL Bank. The allowance is in effect for up to 60 months.
POST ASSISTANCE REQUIREMENTS:
Reports: Participating members of the FHL Bank System file monthly reports showing the status of each HOAP loan, and the number of allowance payments made. FHL Banks summarize such reports and send them to the FHLBB. A monthly report is made by the FHLBB to the Treasury.
Audits: The FHLBB audits every HOAP-assisted loan which is made. Records: The recipient is not required to maintain records. The member institution does maintain records on every HOAP-assisted loan, including a copy of the application. FINANCIAL INFORMATION: Account Identification: None.
Obligations/Face Value of Loans: FY 70 $0; FY 71 est $85,000,000; and FY 72 est $85,000,000.
Range and Average of Financial Assistance: $20/month for up to 60 months; $20/months for each loan.
PROGRAM ACCOMPLISHMENTS: The HOAP program will help 70,000 moderate-income families attain home ownership. It will do so by helping them to obtain mortgage loans which they otherwise could not obtain either on a conventional basis or a Federally insured or guaranteed basis. REGULATIONS, GUIDELINES, AND LITERATURE: Regulations: 12 CFR Subchapter B, Rules and Regulations for the Federal Home Loan Bank System, Part 417, entire part; HOAP Lenders' Guide (free) and HOAP Regular Family Income Limits Handbook (free); HOAP Lender's Application for Borrower Approval and Firm Commitment of HOAP Allowance; HOAP Lender's Schedule of HOAP Loans; HOAP Brochure. INFORMATION CONTACTS:
Regional or Local Office: Local: Participating members of the Federal Home Loan Bank System - savings and loans, mutual savings banks. Regional: Federal Home Loan Banks: Boston; New York; Pittsburgh; Greensboro; Cincinnati; Indianapolis; Chicago; Des Moines; Little Rock; Topeka; San Francisco; and Seattle. Headquarters Office: HOAP Coordinator, Office of Bank Operations/FHLBB, 101 Indiana Avenue, N.W., Washington, D.C.
RELATED PROGRAMS: 14.105, Interest Subsidy - Homes for Lower Income Families; 14.106, Interest Subsidy - Purchase of Rehabilitated Homes by Lower Income Families; 14.117, Mortgage Insurance - Homes.