The Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) required that the Resolution Trust Corporation (RTC), and now the FDIC, develop a program for selling residential properties to provide affordable housing opportunities. In response to this provision, FDIC established the Affordable Housing Disposition Program, or herein referred to as the Affordable Housing Program (AHP), to enhance its ability to sell single family and multifamily properties that will benefit Low Income families.
Under the FDIC’s Affordable Housing Program (AHP) properties were sold to eligible purchasers who make an acceptable offer at or above the property's net realizable market value established by FDIC. In return for purchasing a property at a price below the fair market value, purchasers agree to make units available to Low and Very Low Income households at affordable rents. The rent and income restrictions are designed to assure that, for the next 40 to 50 years, the property serves families in need of affordable housing.
The owner entered into a Land Use Restriction Agreement (LURA) at the time of purchase, setting forth the Owner's obligation to comply with the applicable occupancy, rent and resale restrictions with respect to the Owner's Property.
Also in accordance with the FIRREA, the FDIC entered into a Memorandum of Understanding (MOU) with state and local governments or non-profit organizations such as The Affordable Housing Group, Inc. (AHG), to perform the compliance monitoring for participating developments. In accordance with this MOU, AHG works with owners and managers of participating developments to assure that the program rules are both understood and adhered to. In doing this, AHG performs, among other duties, the following:
- Monitor properties for compliance with program requirements;
- Collect monitoring fees from owners;
- Monitor and enforce corrective action in cases of non-compliance;
- Provide guidance to owners/managers on program requirements;
- Review requests for LURA modification; and
- Report to the FDIC.
This site has been developed to facilitate the compliance reporting requirements as specified in the LURA and the Owner’s Compliance Manual. The program guidelines are detailed in the Owner’s Compliance Manual available on this site.