FDIC Compliance

FDIC’s Affordable Housing Program is a program that surfaced under the recommendation of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) to assist with the disposal of residential developments while providing affordable housing opportunities. Participants in the AHP must agree to make a small portion of the units in the development available to low and very low income households at affordable, restricted rents. As an incentive to the AHP, participants (which includes public agencies, qualified for-profit and nonprofit housing developers) were allowed to purchase an “eligible” development at or below its’ fair market value. The provisions of this program are required for the duration of the developments deed.

Also in accordance with the FIRREA, the FDIC entered into a Memorandum of Understanding (MOU) with state and local governments (such as Mississippi Home Corporation) to perform the compliance monitoring for participating developments. In accordance with this MOU, MHC work with owners and managers of participating developments to assure that the program rules are both understood and adhered to. In doing this, MHC performs, among other things, periodic on-site records and physical inspection of all participating developments, collect annual administrative fees, and provide on-going technical assistance training.