Comment Detail
Date: 07/17/24 First Name: John Last Name: Simko Email: jsimko@androscogginbank.com Organization Type: other Organization: Androscoggin Bank Comment
The AHP is a valuable program which has made the difference between go or no go for affordable housing projects in our section of Maine. Affordable housing projects are often so lean that without the direct subsidy, the amount of debt service makes the project no longer cash flow.
Town comments related to the program itself. First, it is difficult to issue a term sheet for purpose of proforma development in May knowing the AHP award will not be until December, which in Maine typically means the construction phase will not begin until Spring. If there were a way to collapse this time frame a bit, it would help to make term sheets be more meaningful: currently, they are written knowing that they will expire prior to a decision by FHLBB, let alone the start of construction.
Second, adding credit in scoring to the continuation or enhancement of a previously funded AHP project might make sense. Some projects are broken in two to allow for funding to be secured: if FHLBB AHP has been awarded to one phase, a second phase which enhances the first should receive greater consideration because it makes the value of the first award even greater.
Overall, this is a great program. The FHLBB staff are exceptional in terms of knowledge, commitment, and customer service - none better!