The replacement reserve account is established by the borrower(s) at the time of the HOME loan closing and must be maintained for the entire 20-year affordability period. AHFA has established specific requirements for the replacement reserve accounts to safeguard the availability of funds for capital needs as the project will require for maintaining a viable project throughout the 20-year affordability period.
All withdrawals from the replacement reserve account must be approved by AHFA.
Therefore, AHFA has also established specific guidelines for requesting and receiving approval of withdrawing funds from the replacement reserve account. These guidelines are not all inclusive and, therefore, may not address every situation requiring a request to withdraw funds.