City of Rochester First Home Club

City of Rochester First Home Club is sponsored by Federal Home Loan Bank of New York (FHLBNY). Provides matched savings for first-time homebuyers in Rochester, New York.

FEDERAL HOME LOAN BANK OF NEW YORK  101 PARK AVENUE  NEW YORK, NY 10178  WWW. FHLBNY. COM # Homebuyer Dream Program ® # Homebuyer Dream Program ® # Homebuyer Dream Program ® Plus # Homebuyer Dream Program ® Wealth Builder Effective June 2026 FHLBNY 1 TABLE OF CONTENTS..................................................................................................................................................

1 INTRODUCTION............................................................................................................................................................ 2 PROGRAM OVERVIEW ..................................................................................................................................................

5 Program Offering ...................................................................................................................................................... 5 Member Participation ...............................................................................................................................................

6 HDP File Transfer System ......................................................................................................................................... 6 Submission of a New Household Reservation Request .......................................................................................

6 Commitment of Funds .............................................................................................................................................. 8 Submission of a Funding Request ...........................................................................................................................

8 Funding of the HDP Grant ........................................................................................................................................ 9 Submission of Other Documentation .....................................................................................................................

9 Status Reporting ...................................................................................................................................................... 10 PROGRAM REQUIREMENTS .........................................................................................................................................

11 Household Income .................................................................................................................................................. 14 Eligible and Ineligible Income Sources ...................................................................................................................

14 Household Income Calculation and Documentation Requirements .................................................................. 16 Employment Income ................................................................................................................................................. 16 Social Security, Retirement/Pension, Public Assistance, and Disability Income ................................................

19 Self-Employment Income.......................................................................................................................................... 20 Child Support .............................................................................................................................................................

20 Seasonal Employment, Unemployment, and Miscellaneous Income ................................................................. 21 Rental Income ............................................................................................................................................................

22 Zero Income Earning Adults ..................................................................................................................................... 22 Homeownership Counseling .................................................................................................................................

23 Household Equity Contribution ............................................................................................................................. 23 Use of the HDP Grant .............................................................................................................................................

24 Closing Requirements ............................................................................................................................................. 24 Execution of HDP Retention Documentation .........................................................................................................

24 Closing Disclosure ..................................................................................................................................................... 25 Retention Period......................................................................................................................................................

26 RETENTION MONITORING PRACTICES ....................................................................................................................... 27 EVENTS OF NON-COMPLIANCE AND RECAPTURE .....................................................................................................

27 Events of Non-Compliance ..................................................................................................................................... 27 Foreclosure ..............................................................................................................................................................

28 Inheritance ............................................................................................................................................................... 28 Processing of a Recapture ......................................................................................................................................

28 SUSPENSION AND DEBARMENT POLICY ..................................................................................................................... 31 CONFLICT OF INTEREST .............................................................................................................................................

31 RECORD RETENTION REQUIREMENTS ........................................................................................................................ 31 FHLBNY 2 The mission of the Federal Home Loan Bank of New York (“FHLBNY”) is to provide members with prompt, on-demand liquidity in support of housing, local community development and financial stability.

The FHLBNY meets our mission by providing our members with access to economical wholesale credit and assistance through our credit products, mortgage finance program, housing, and community lending programs, and correspondent services. Access to liquidity enables our members to meet their customers’ needs and is crucial to the health of local economies and the growth of individuals, households, and communities.

The FHLBNY offers three first-home homebuyer programs: Homebuyer Dream Program ® (“HDP ®”) The Homebuyer Dream Program ® (“HDP ®”) is a federally regulated first-time Homeownership Set-Aside Program, offered under the FHLBNY’s Affordable Housing Program (“AHP”) and managed within regulatory requirements established by the Federal Housing Finance Agency (“FHFA”) 12 C. F. R.

Part 1291, as may be amended from time to time (“AHP Regulation”). HDP provides funds in the form of a grant to be used towards down payment and closing cost assistance to first-time homebuyers earning at or below 80% of the Area The maximum grant that a household may receive is up to $30,000, as determined by the member, and submitted to the FHLBNY.

Homebuyer Dream Program ® Plus (“HDP ® Plus”) Homebuyer Dream Program ® Plus (“HDP ® Plus”) is voluntary program that gives members the opportunity to provide grant funds to first-time homebuyers earning greater than 80% of the AMI. The maximum grant amount of up to $30,000 will be utilized towards down payment and closing cost assistance.

Participating members may offer HDP Plus to households that meet the following income thresholds: • New York and New Jersey: Earning over 80% AMI, but not to exceed 120% AMI. • Puerto Rico and U.S. Virgin Islands: Earning over 80% AMI, but not to exceed 150% AMI. HDP Plus may only be administered within the FHLBNY District.

Homebuyer Dream Program ® Wealth Builder (“HDP ® Wealth Builder”) Homebuyer Dream Program ® Wealth Builder (“HDP ® Wealth Builder”) is designed to address the wealth gap by providing grants to first-time homebuyers who have historically experienced challenges accessing the FHLBNY 3 credit or housing markets. Grant recipients must currently purchase an eligible property type within the FHLBNY District.

The maximum grant amount of up to $30,000 must be utilized towards down payment and closing cost assistance and participating members may offer HDP Wealth Builder to households that meet the following income thresholds: • New York and New Jersey: Earning income equal to or less than 120% of the AMI. • Puerto Rico and U.S. Virgin Islands: Earning income equal to or less than 150% of the AMI.

Eligible households must also qualify as first-generation homebuyers, meaning that: • The parents and/or legal guardian of at least one borrower does not currently own a home in the United States and has not previously owned a home in the United States; or • At least one borrower has aged out of foster care.

Note: On April 22, 2026, the Consumer Financial Protection Bureau (“CFPB”) issued a final rule under Regulation B (implementing the Equal Credit Opportunity Act). To ensure compliance with this rule, FHLBNY updated HDP Wealth Builder as follows: • The majority-minority census tract eligibility criterion was removed.

Reservation requests qualified under the majority-minority census tract eligibility criterion are not accepted as of May 28, 2026. • HDP Wealth Builder is no longer administered as a Special Purpose Credit Program (“SPCP”). • All other program requirements and eligibility criteria, including the first-generation homebuyer criterion, remains unchanged.

The final rule was issued with an effective date of July 21, 2026. The Homebuyer Dream Program Guidelines (“Program Guidelines”) will assist you as you work along with the homebuyer, and counseling agency to ensure HDP grants are executed and funded in a timely manner and in compliance with the AHP Regulation, the FHLBNY AHP Implementation Plan (“ AHP Implementation Plan”) and these Program Guidelines, where applicable.

These Program Guidelines are intended to be illustrative, not exhaustive, as not all possible scenarios can be addressed herein. These Program Guidelines serve as a reference to all three first-time homebuyer programs and the programs may be referred to collectively as ‘Homebuyer Dream Program ’ or ‘HDP’; unless specified, it should be assumed that a guideline is applicable to all three programs.

FHLBNY 4 The diagram below outlines the program life cycle. Member executes and returns the following documents: - HDP-001: HDP Member Participation Agreement - HDP-002: HDP File Transfer System Enrollment Form The FHLBNY sets up the users identified within HDP-002 for the FTS Member qualifies household based on program parameters.

SUBMISSION OF A RESERVATION REQUEST Member submits a completed household reservation request to the FHLBNY via the FTS. The FHLBNY expects the reimbursement of funds to the member to occur by commitment expiration. Funds are disbursed to the member on a post-closing basis pursuant to the FHLBNY’s review of the submitted funding request.

COMMITMENT OF FUNDS • The FHLBNY reviews the reservation request for eligibility and issues a commitment to the member for a period of 120 days. SUBMISSION OF A FUNDING REQUEST Member must submit a funding request to the FHLBNY via the FTS no later than 15 days prior to the commitment expiration. Household is required to commit to a 5-year retention period.

FHLBNY 5 Subject to the availability of HDP funds, the FHLBNY shall provide an annual allotment of HDP funds to be administered through its qualified participating members. In this endeavor, the FHLBNY needs to ensure that all interested members can equitably participate in the HDP and ensure commitments remain within the constraints of available annual funding.

Members may elect to participate in the 2026 HDP Round (the “Round”) by executing an updated HDP Member Participation Agreement submitted via email to HDP@fhlbny. com no later than January 9, 2026. Members that do not comply with this deadline may not be eligible to participate in the Round.

A notification of initial allotments will be distributed within approximately thirty (30) days of the start date of the Round (scheduled to commence on or around February 9, 2026. It is the member’s responsibility to monitor their assigned allotment. The initial allotment will be based upon a three-year weighted average of commitments issued for the applicable program.

Newly participating members and members with low historical commitments will be allotted a floor, which is the minimum amount of funds allotted to any one participating member. Qualified participating members with high historical commitment volume may be impacted by a ceiling, which is the maximum limit of allotted funds given to any one member.

The floor and ceiling take the following factors into consideration: 1) total allocation of the Round, 2) number of participants for the Round and 3) the maximum grant amount. Qualified participating members will have until August 28, 2026, to fully reserve their initial allotment. All unreserved allotments across the participating members remaining as of 5:00 p.

m. ET on August 28, 2026, will be removed from each member and combined for the purpose of redistribution during the reallotment. The collective funds will be distributed in rank order to members who exhausted their initial allotments, with exhaustion of funds being defined as $15,000 or less from the initial allotment remaining unreserved.

The first reallotment will occur on or around September 8, 2026. Multiple reallotments can occur dependent upon funds available. There is no guarantee that additional funds will become available nor that participating members with exhausted allotments will receive additional funds.

The Round will end on November 27, 2026, as of 5:00 p. m. ET or whenever funds are exhausted, whichever comes first.

Once the Round opens, participating members may begin submitting reservation requests for eligible households. The maximum grant amount that a household may receive is up to $30,000, as determined by the participating member and submitted to the FHLBNY. Funds may be used toward the down-payment and/or closing costs for the purchase of a home by a qualified household.

FHLBNY 6 Members who are in good standing with the FHLBNY may apply to participate in the Homebuyer Dream Program rounds by completing the HDP Member Participation Agreement (HDP-001).

By executing this agreement, the member agrees that it has received notification of and will comply with all the requirements established by the AHP Regulation, the FHLBNY AHP Implementation Plan, and the FHLBNY Homebuyer Dream Program Guidelines, which govern the Homebuyer Dream Programs as applicable, whether now existing or hereafter amended or implemented.

The member also agrees that it will pass on the full amount of the grant to the household and the grant will be used in accordance with the terms of the HDP Member Participation Agreement and the requirements of the AHP Regulations, Program Guidelines and the AHP Implementation Plan, as applicable. Participation in the suite of Homebuyer Dream Programs may be restricted at any time at the sole discretion of the FHLBNY.

## HDP File Transfer System Pursuant to applicable Federal and State laws, to protect household information that may be utilized to develop a credit profile if intercepted by an unauthorized third party, the FHLBNY requires that relevant documentation be submitted through FHLBNY’s File Transfer System (“ FTS ”).

The FHLBNY must receive a fully executed HDP File Transfer System Enrollment Form (HDP-002) identifying member representatives authorized to submit HDP documentation to the FHLBNY. Member representatives listed in the HDP File Transfer System Enrollment Form for HDP must have both a User ID and password established for the FTS.

It is the member’s responsibility to advise the FHLBNY of any changes in member representatives by submitting an updated HDP File Transfer System Enrollment Form (HDP-002) . All files submitted through the FTS must be done as one Zip file per household and must contain a completed and accurate HDP Request Form (HDP-005) in MS Excel format, containing the . xlsx file extension and all supporting documentation in PDF format .

Submissions received by the FHLBNY via e-mail or methods other than the FTS will not be accepted. A successful upload through the FTS does not constitute a reservation or commitment of funds.

## Submission of a New Household Reservation Request To submit a new household reservation request, the member must complete the HDP Request Form (HDP-005) selecting appropriate Homebuyer Dream Program and the New Household Reservation Request option. FHLBNY 7 The HDP Request Form (in MS Excel format, containing the .

xlsx file extension) along with the following required documentation (in PDF format) must be submitted to the FHLBNY via the FTS as one Zip file per household: • Income documentation for all sources of income for each income-earning adult in the household. • Fully executed HDP Homebuyer Certification for the applicable program dated within 60 days of the reservation date .

• Fully executed homeownership counseling certificate completed within 18 months of the reservation date. • Fully executed HDP Zero Income Certification (AHP/HDP-001) form(s) for each member of the household, 18 years and older, with zero income. • Fully executed legal separation agreement or divorce decree (if applicable).

Prior to the submission of the HDP Request Form , ensure the required fields section (located on the top right of the form) reflects 100% completion. The submission of a new household reservation request through the FTS does not constitute a reservation or commitment of funds.

In the event the FHLBNY receives an incomplete HDP Request Form and/or missing supporting documentation, the FHLBNY reserves the right to reject the household reservation request, and the member will be required to submit a new household reservation request. If the household reservation request is conditioned for additional documentation/information, the member will have two business days to FHLBNY 8 respond to the request.

If not received after two business days, the reservation request will be cancelled, and the member will be required to submit a new household reservation request. If the household is applying for grants under multiple first-time homebuyer programs, a separate request form is required for each program.

The FHLBNY, in its sole discretion, will determine whether each household has met the eligibility requirements, prior to commitment of a HDP, HDP Plus or HDP Wealth Builder grant. Upon the FHLBNY’s approval of the reservation request, the commitment of grant will be issued via email to the member confirming commitment of the grant for a 120-day period. Once a commitment has been issued, changes to the grant amount will not be permitted.

If a request for a grant amount change occurs, it must be done prior to the issuance of the commitment. The homebuyer and property address on the commitment must match the homebuyer and property address identified on the retention documentation (where applicable) and Closing Disclosure. Commitments may not be transferred to another member, property or homebuyer(s).

Commitments that are withdrawn may be credited back to th e member’s allotment, assuming the allotment period remains open. The FHLBNY expects reimbursement of funds to the member to occur by the commitment expiration date.

It is the m embers’ responsibility to monitor the commitment period and communicate with the FHLBNY if there are any issues with submitting the funding request no later than fifteen (15) days prior to commitment expiration. If a member requests a commitment extension, it will be evaluated on a case-by-case basis. At the time of commitment expiration, the household will be withdrawn from the program.

## Submission of a Funding Request Funding requests must be submitted by the member to the FHLBNY upon receipt of closing documentation and no later than fifteen (15) days prior to commitment expiration. The member must submit a HDP Request Form (in MS Excel format, containing the . xlsx file extension) selecting the Funding Request option.

Prior to the submission of the HDP Request Form , ensure the required fields section (located on the top right of the form) reflects 100% completion. The HDP Request Form (HDP-005) (in MS Excel format, containing the . xlsx file extension) , along with the required documentation (in PDF format), must be submitted to the FHLBNY via the FTS as one Zip file per household.

Program documentation requirements are as follows: • Homebuyer Dream Program − Subordinate Mortgage Retention Documents (HDP-006) including Exhibit A and Certification of Intent to Record (excluding cooperative housing (“co -op”) , mortgages financed by Federal Housing Administration (“FHA”) , and mortgages originated in Puerto Rico.)

FHLBNY 9 − UCC-1 Filing (applicable to cooperative housing) • ‘Secured P arty’s Name ’ section must list the member. • ‘Optional Filer Reference Data ’ or ‘Miscellaneous’ section should list HDP grant with the amount, e. g .

“Homebuyer Dream Program $30,000.

” • Co-op Intention to Record (HDP-006COOP) − Declaration of Restrictive Covenant FHA Retention Documents (HDP-006FHA) (applicable to FHA financing), including Exhibit A and Certification of Intent to Record − Promissory Note and Subordinate Mortgage (HDP-006PR or HDP-006FHAPR) (applicable to Puerto Rico only) • Homebuyer Dream Program Plus • Homebuyer Dream Program Wealth Builder It is the member’s responsibility to review the closing documentation to ensure completeness and adherence to the guidelines prior to the submission for reimbursement of subsidy.

Failure to submit the required HDP Request Form and all supporting documentation to the FHLBNY within the required timeframe may affect the membe r’s participation status in the Homebuyer Dream Program. The FHLBNY reserves the right, in its sole discretion, not to fund the request if the required HDP Request Form and all supporting documentation are not received and/or deemed unacceptable to the FHLBNY.

The FHLBNY will disburse subsidies only to institutions that are members of the FHLBNY at the time they request a draw-down of the subsidies. If a member with an approved Funding Request for grant subsidy loses its membership in the FHLBNY, the FHLBNY may disburse grant subsidies through another Federal Home Loan Bank to a member that has assumed the former member’s obligations .

## Funding of the HDP Grant Upon review and approval by the FHLBNY of the HDP Request Form and all supporting documentation, the grant will be disbursed to the member ’s Overnight Investment Account (“OIA”) on a post-closing basis. An email notification confirming the transfer will be issued to the member.

If the member’s funding request is denied, the member will be required to record a release of the Subordinate Mortgage or the Declaration of Restrictive Covenant, if applicable ## Submission of Other Documentation If additional documentation is requested by the FHLBNY, the member must submit a HDP Request Form (in MS Excel format, containing the . xlsx file extension) selecting the Other Documentation category.

The HDP Request FHLBNY 10 Form along with the requested documentation (in PDF format) must be submitted via the FTS as one Zip file per household. Members are required to notify the FHLBNY of any household that ceases to participate in, no longer qualifies, has change in size of household, or has any income not reported at reservation. On a monthly basis, a HDP Member Pipeline Status Report will be issued to the member via the FTS.

Upon receipt of the report, members must review the status report and update the FHLBNY regarding any changes to the h ousehold’s status to ensure that the m ember’s records align with the records of the FHLBNY. Reports provided to the member will remain available within the FTS until the end of a quarter, at which time reports dated ninety (90) days or older are automatically deleted.

The member is solely responsible for downloading the HDP Member Pipeline Status Report. FHLBNY 11 Determining household eligibility is the responsibility of the member and is based upon the reservation request date, defined as the date a new household reservation request is submitted to the FHLBNY via the FTS.

The member must ensure the following Homebuyer Dream Program eligibility requirements are met: • Meet the definition of a “first–time homebuyer” which, based on the definition by the U.S. Department of Housing and Urban Development (“HUD” ), is defined as an individual who meets any of the following criteria: − An individual who has had no ownership in a principal residence during the 3-year period ending on the date of the purchase of the property.

This includes a spouse (if meets the above test, they are considered first-time homebuyers). − A single parent who has only owned a principal residence with a former spouse while married. − An individual who is a displaced homemaker and has only owned a principal residence with a spouse.

− An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations. − An individual who has only owned a property that was not in compliance with state, local or model building codes and could not be brought into compliance for less than the cost of constructing a permanent structure.

• Note: For purposes of these programs, the term "displaced homemaker" means an individual who: − has not worked full-time, full-year in the labor force for a number of years but has, during such years, worked primarily without remuneration to care for the home and family; and − is unemployed or underemployed and is experiencing difficulty in obtaining or upgrading employment.

• Household must meet the program’s income requirements of the AMI for the county in which the household is purchasing, adjusted for household size, as determined under 26 U.S.C. 143(f), Mortgage Revenues Bonds, as published by a state agency or instrumentality for New York, New Jersey and Puerto Rico.

For all other states and U.S. territories, including the U.S. Virgin Islands, the area median income, as published annually by HUD, is used. The income requirements for each program are as follows: • 80% AMI or less FHLBNY 12 • New York and New Jersey: earning over 80% AMI, but not to exceed 120% AMI. • Puerto Rico and U.S. Virgin Islands: earning over 80% AMI, but not to exceed 150% AMI.

• New York and New Jersey: 120% AMI or less • Puerto Rico and U.S. Virgin Islands: 150% AMI or less • Household size is based upon the number of people who will reside in the home being purchased. − Divorced or separated homebuyer(s) who have joint custody of their children should include the children in their household count, regardless of the amount of custody time.

− Non-occupying co-signers, non-occupying co-borrowers, or guarantors are not to be included in household size, although they should be included in the household income. • Household must adhere to the income and underwriting standards of the FHLBNY as described in the Household Income section within this document.

• Household must purchase an eligible property type in the geographic area specified by the program: • Any U.S. state or Territory • FHLBNY District: New York, New Jersey, Puerto Rico, and U.S. Virgin Islands • FHLBNY District: New York, New Jersey, Puerto Rico, and U.S. Virgin Islands − Eligible properties include 1-4 family dwellings, townhouses, condominiums, cooperative housing units or manufactured housing (must be affixed to a permanent foundation) to be used as the household’s primary residence.

− In the case of new construction, construction must be completed prior to closing, and member must ensure issuance of a Certificate of Occupancy. − Ineligible properties include investment properties, vacation homes, and vacant land.

• The current residency of the homebuyer(s) must align with the requirements of the applicable program: − HDP, HPD Plus and HDP Wealth Builder have the same residency requirement: the household must reside in any U.S. state or Territory • Homebuyer(s) must have a fully executed Purchase and Sales Contract dated on or before the reservation request date.

FHLBNY 13 • Homebuyer(s) must complete a homeownership counseling program as further defined in the Homeownership Counseling section. • Homebuyer(s) must provide a minimum equity contribution of $1,000 toward the purchase of the home as described in the Household Equity Contribution section within this document.

• For HDP only, homebuyer(s) must agree to sign, at time of closing, a 5-year deed restriction or other legally enforceable retention agreement or mechanism (“Retention Agreement”), with the member in the amount of the total HDP grant, which requires (i) notice to the FHLBNY, and in its discretion any designee of the FHLBNY, notice of any sale, transfer, assignment of title or deed, or refinancing of the unit by the household occurring during the AHP five (5) year retention period; and (ii) repayment of a portion of the subsidy unless the transfer is subject to repayment exception of the AHP Regulations.

• Household closing and reimbursement of funds to the member should occur within the 120-day commitment period. Households that have closed before the issuance of a commitment are not acceptable. • Obtain mortgage financing from the participating member, or a wholly owned subsidiary, or the federal government, or an instrumentality thereof, for the purchase of a primary residence.

• Member’s first mortgage financing does not exceed the annual percentage rate, points and fees, or prepayment penalty thresholds of the Home Ownership and Equity Protection Act of 1994 and its implementing regulation (Federal Board Regulation Z), and that the first mortgage loan does not violate any Anti-Predatory Lending Laws.

• The member must comply with the underwriting standards of the FHLBNY, including but not limited to: − Maximum original Loan to Value (“LTV”) of 97% for conventional financing and mortgages insured by the Federal Housing Administration (“FHA”). − Loans guaranteed by the Veterans Administration (“VA”) are limited to 100% and LTV is calculated using the base mortgage amount.

− Loans guaranteed by the United States Department of Agriculture (“USDA”) 502 Direct and Guaranteed Loan Programs are limited to 100% LTV. − Total Debt to Income Ratio greater than 45% requires the member provide an explanation of household affordability on the Homebuyer Dream Program Request Form . − The term of the first mortgage financing cannot be less than 5 years.

Note: Loan to Value is defined as the original loan amount divided by the acquisition cost. The acquisition cost may include the property cost, rehabilitation/development costs, and land value.

Additionally, for HDP Wealth Builder, at least one of the homebuyers must qualify as first-generation homebuyers, meaning that: FHLBNY 14 − The parents and/or legal guardian of at least one borrower does not currently own a home in the United States and has not previously owned a home in the United States; or ## − At least one borrower has aged out of foster care.

The member is responsible for verifying all sources of income for all household members, 18 years and older. The income of non-occupying co-signers, co-borrowers, or guarantors must also be included in the calculation for determining income eligibility, although they should not be included in the household size.

The homebuyer(s) must demonstrate a reliable stream of income; examples include full time employment (defined as ≥ 32 hours a week), pension, disability award, Social Security, Individual Retirement Accounts, or Household members, 18 years and older, who do not receive income must execute a Zero-Income Certification form (AHP/HDP-001) located on the FHLBNY’s website and be identified under Section G of the Income Calculation Worksheet embedded within the HDP Request Form .

If an individual is separated from his/her spouse, then the individual must also provide evidence of such separation with a legal separation agreement, legal documents filed with a court seeking a divorce or a divorce decree. Eligible and Ineligible Income Sources The following lists identify what does and does not constitute annual income. What constitutes “income” ?

• Total annual anticipated income from all sources (including part-time jobs), at the time of reservation, received by the household, (even if a household member is temporarily absent), prior to any payroll deductions of wages and salaries, overtime pay, commissions, fees, tips and bonuses and other compensation of personal services. (See Note below.)

• Income derived from pension, disability award, Social Security, Individual Retirement Accounts, annuities, insurance policies, death benefits or similar types of periodic receipts. • Reported net income derived from operation of a business or profession. • Income consistently derived from stock portfolio earnings, dividends, and other interest income.

• Net income of any kind of real or personal property. • Payment in lieu of earnings, such as unemployment, disability compensation, worker’s compensation, and severance pay in conjunction with a reliable stream of income. • Payments from waiving insurance benefits.

FHLBNY 15 • Alimony, child support, or separate maintenance. • Welfare assistance, Supplemental Security Income, and other non-earned income paid to children. • All regular pay, special pay, and allowances of a household member in the Armed Forces.

• 75% of the total annualized anticipated rental income, if purchasing a 2-4 family unit property. Note: Household members on temporary leave, such as paternity/maternity leave or sabbatical, will have their income calculated as if they were not on leave. A letter from the household and employer confirming the leave date and anticipated return date as well as a Written Verification of Employment will be required.

What does not constitute “income? ” • Employment derived from individuals (including foster children) under the age of 18 years. • Payments received for the care of foster children or foster adults.

• Non-recurring additions to household assets (e.g., inheritances, capital gains, insurance policy death benefit payments, settlement for personal/property losses). • Amounts received by the household that are specifically for, or in reimbursement of, the cost of medical expenses for any household member. • Income of a live-in aide.

• Mileage reimbursement or other reimbursements of expenses related to employment (i.e. parking, travel, supplies, etc.). • Educational scholarships paid directly to a student, educational institution, or a veteran. • Earned income tax credits.

• Unreliable and non-recurring income (e.g., gifts, employee stock option buyouts, sign-on bonuses). • The value of food stamp allotments. • The special pay to a household member serving in the Armed Forces who is exposed to hostile fire.

• Deferred periodic payments from supplemental security income and Social Security benefits that are received in a lump-sum amount or in prospective monthly drawdowns. • Amounts received by the household in the form of refunds or rebates under state or local law for property taxes paid on the dwelling unit.

FHLBNY 16 • Amounts paid by a state agency to a household with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled household member at home.

Household Income Calculation and Documentation Requirements The reservation request date must be used to determine the applicable mortgage revenue bond (“ MRB ”) or HUD income guidelines and the age of each household member. Household income must be calculated using the