A Closer Look at the 7 Scoring Criteria that Impact AHP Projects

last updated on Friday, February 21, 2025 in Affordable Housing

The Competitive Affordable Housing Program (AHP) supports the acquisition, construction and rehabilitation of single and multifamily housing – both for rental and homeownership. Funds are awarded on a competitive basis to applicants based on defined scoring criteria, with points awarded for projects that include things such as targeting specific populations, connection or inclusion of services or activities that support improved economic opportunities, or project located in targeted areas around the FHLB Des Moines district.  

Understanding the AHP scoring criteria, eligibility requirements and feasibility guidelines is a key factor to receiving funding. Applicants can refer to the Implementation Plan, a foundational document for complete details on how FHLB Des Moines administers our AHP.

In total, there are seven scoring criteria that impact a project’s final score. Some categories are fixed, meaning your application receives all or none of the points in that category. Other categories are variable, where points are awarded on a sliding scale and dependent on a variety of factors.

For each project, 100 points is the maximum points available. The table below shows a historical view of past projects and their scoring range. On average, we typically see a maximum score around the mid-seventies.

To a certain degree, it’s not possible for applicants to predict their exact score, since some points, such as the AHP subsidy per unit, aren’t awarded until all applications have been submitted - use of tools such as our self-scoring worksheet and one-on-one technical assistance can provide valuable insight.

2025 AHP Scoring Summary

Criterion 1: Donated or Discounted Property - 5 Variable Points

Under this category, 1 point could be awarded if the land or units were conveyed by the Federal Government, or you could receive up to 5 points if the land or units were donated.

Another option is if the property was purchased at a discount. If the fair market value of the property was discounted by at least 20%, you can receive up to 5 points. That fair market value must be documented, typically with an ‘as is’ appraisal.

Our Implementation Plan includes all guidelines for documenting fair market value. As a reminder, assumed debt is considered a discount and not a donation.

Criterion 2: Non-Profit or Government Sponsorship – 10 Fixed Points 

If the project sponsor is one of the entities listed below, your project will receive 10 points.

• Non-profit organization
• State or political subdivision of a state
• State or regional housing agency
• Local housing authority
• Native American Tribe
• Alaska Native Village
• Government entity for Native Hawaiian Homelands  

The sponsor applicant must be intricately involved in the project. For homeownership projects, this means the project sponsor is involved in at least two of the following roles:

• Managing the acquisition and development of the project
• Qualifying borrowers
• Arranging financing

For rental projects, in addition to the sponsor being integrally involved in the project, the sponsor must also have controlled ownership interest in the project.

Criterion 3: Income Targeting – 20 Variable Points

Income targeting is a variable point category which is calculated differently for rental and homeownership projects. For rental projects, the more units you target for low, very low- or moderate-income households, the more points you will receive.  Rental project must target a minimum of 20% of the units to households at or below 50% of the area median income (AMI).  Projects where 50% or more of the units will be reserved for households at or below 50% of the AMI will receive 20 points.

Remember, we calculate income based on the initial occupancy of the unit. You must reserve units for those income levels and those targeted units must be reserved for those income levels for the entire retention period, which is 15 years after the project is completed.

Income targeting for homeownership projects is more straightforward. Points are awarded based on your level of commitment to households:

• 16 points will be awarded if less than 10% of the units in the project are at or under 60% of AMI.
• 18 points will be awarded if greater than 10%, but less than 20% of the units are at or under 60% of AMI.
• 20 points awarded if 20% or more of the units are at or under 60% AMI.

Please note - serving greater than 20% of units under 60% AMI does not provide any additional points.

Criterion 4: Economic Opportunity/Empowerment – 5 Fixed Points

You can receive 5 points if your project offers an empowerment service to the residents or participants in your program. While you can offer more than one economic empowerment service, there are no points awarded for having more than one service.

Examples of services include but are not limited to employment, education, literacy, GED or tutoring, training, homeownership or tenant counseling, childcare, adult daycare services, health services including mental health and behavioral health services.

Services must be offered and available to all residents of the projects/participants in your AHP program and must be appropriate for the population served by your project.

Criterion 5: Underserved Communities – 25 Variable Points

This criterion looks at underserved communities including homeless, special needs and targeted populations.

Homeless:
A project can receive anywhere between 5 to 10 points based on their level of commitment to serving homeless individuals.

Special Needs:
Special needs populations include elderly, disabled, formerly incarcerated, unaccompanied persons recovering from substance or physical abuse, as well as persons with HIV or AIDS, can receive anywhere from 5 to 10 points based on the level of commitment to serving special needs populations.

Targeted:
Targeted populations include service to veteran and agricultural workers.  A project can receive 2 to 5 points based on their level of commitment to veteran or agricultural workers. More points are awarded for a higher percentage of targeted units in each of these areas.

Criterion 6: Community Stability, Including Affordable Housing Preservation – 12 Variable Points

Project types included in community stability criteria are:

• Preservation of federally assisted housing
• Adaptive reuse projects
• Projects that rehabilitate or demolish and build new of vacant and abandoned buildings
• Acquisition and rehabilitation of naturally occurring affordable housing
• Rehabilitation of owner-occupied housing

Up to 12 variable points are available.

Criterion 7: Bank District Priority – 23 Variable Points

Our last scoring criteria is Bank district priority. This is another variable category with several different point calculations.

Under this scoring criteria, one of the points available is for in-district. Find the state where your project is in the table below to determine how many points you will receive. In 2025, we’ve increased our in-district points to encourage applications in Hawaii and Utah.

A project not located within the FHLB Des Moines district can still apply. However, the project will not be eligible for in-district points.

Additional scoring for Bank district priority is 13 points for Native housing projects. Points are awarded based on location, project owner or tribal funding.

There are a few other ways to get points under criteria seven, district priority:

• Up to 12 points are available for the new construction of single-family, owner-occupied units.
• Up 10 points available for new construction rental projects with 24 units or less.
• Up to 5 points based on the amount of AHP subsidy requested per unit in your application.

The calculation of these points will not occur until all applications have been submitted.

Technical Assistance Available

FHLB Des Moines has a dedicated team available to provide one-on-one technical assistance as you prepare your AHP application. To learn more about the resources and guides available to you visit  https://www.fhlbdm.com/products-services/affordable-housing/ahp-sponsors/technical-assistance/

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