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Affordable Housing Program (AHP)
The financial Institutions Reform, recovery and Enforcement Act of 1989 (FIRREA)
required that the Resolution Trust Corporation (RTC) develop a program for
selling residential properties to provide affordable housing opportunities.
In response to the provision, RTC established the Affordable Housing
Disposition Program (AHDP), 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.
Pursuant to the Resolution Trust Corporation Completion Act, the RTC
terminated on December 31, 1995, and all of RTC’s rights and obligations
were transferred to the FSLIC Resolution Fund, the successor in interest to
the RTC, which is managed by the Federal Deposit Insurance Corporation
(FDIC). This does not affect the terms and conditions of the Land Use
Restriction Agreements (LURA’s), as owners’ responsibilities continue, and
the FDIC, as manager of the FSLIC Resolution Fund, assumes the RTC’s
AHP gives income eligible families and qualified housing developers first
opportunity to purchase FDIC-held properties suitable for affordable
housing. Under the Disposition program, FDIC will sell these properties to
the first eligible purchaser who makes an acceptable offer at or above the
property’s net realizable market value established by FDIC. In purchasing
property through AHP, the buyer agrees to meet the affordability guidelines
established by the program. These requirements are designed to assure the
property serves families in need of affordable housing.
Under the FDIC program, FDIC entered into an agreement with Missouri Housing
development Commission (MHDC) to monitor multifamily properties for
compliance with these affordability requirements.