Multifamily Finance Programs
U.S. Department of Housing and Urban Development (HUD) Multifamily Housing Programs
Lenders approved by HUD can participate in Federal Housing Administration (FHA) multifamily mortgage insurance programs, including programs for new construction, substantial rehabilitation, and refinance of rental and cooperative housing, as well as special needs, assisted living, and seniors housing. HUD also operates the Section 8 voucher program, which subsidizes rent payments for low-income individuals.
- HUD: Housing Finance Agency Risk-Sharing, Section 542(c)
- HUD: Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Housing Projects, Section 207/223(f)
- HUD: Mortgage Insurance for Rental and Cooperative Housing, Section 221(d)(3) and (4)
- HUD: Mortgage Insurance for Rental Housing for the Elderly, Section 231
- HUD: Mortgage Insurance for Rental Housing for Urban Renewal and Concentrated Development Areas, Section 220
- HUD: Mortgage Insurance for Single Room Occupancy Projects, Section 221(d)(3) and (4)
- HUD: Mortgage Insurance for Supplemental Loans for Multifamily Projects, Section 241(a)
- HUD: Risk-Sharing Program - Qualified Participating Entities, Section 542(b)
Federal Home Loan Banks
The Federal Home Loan Banks, through their affordable housing and community investment programs, are serving lower income households, as they have since 1990. Federal Housing Finance Agency is responsible for establishing Affordable Housing Goals, maintaining data, annual reporting, and developing regulatory policies, as well as, conducting off-site monitoring and examinations of the Federal Home Loan Banks' housing and community investment programs and activities.
- Affordable Housing Programs at the Federal Home Loan Banks: Covers the Affordable Housing Program (AHP) and mentions the Community Investment Program (CIP) and the Community Investment Cash Advance (CICA) Program.
HUD Special Needs Multifamily Housing Programs
- HUD: Assisted Living Conversion
- HUD: Emergency Capital Repairs
- HUD: Supportive Housing for Persons with Disabilities, Section 811
- HUD: Supportive Housing for the Elderly, Section 202
HUD Section 8 Programs
- HUD: Office of Recapitalization, provides assistance and information for preservation of properties with expiring subsidies.
- HUD: Section 8 Rental Certificate Program is designed to serve very low-income families by providing a subsidy for the difference between what the household can afford and the fair market rent.
U.S. Department of Agriculture Rural Housing
The U.S. Department of Agriculture (USDA) offers several Rural Development Multifamily Housing Programs that offer loans and grants to developers of low-income community housing.
- Multi-Family Housing Loan Guarantees: The program works with qualified private-sector lenders to provide financing to qualified borrowers to increase the supply of affordable rental housing for low- and moderate-income individuals and families in eligible rural areas and towns.
- OCC: "USDA Rural Housing Finance Programs: Loan Guarantee, Leveraged Loan, and Multifamily Loan," (PDF) Community Developments Fact Sheet This fact sheet describes both the USDA single family program (502) and the multifamily program (538). The 538 program was designed to increase the supply of affordable multifamily housing in rural areas through partnerships between Rural Development and major lending sources, as well as State and local housing finance agencies and bond insurers. The program provides Federal credit enhancement to encourage private and public lenders to make new loans for affordable rental properties that meet program standards.
- USDA: Farm Labor Housing Direct Loans and Grants Program, Section 514. This program provides affordable financing to develop housing for year-round and migrant or seasonal domestic farm laborers.
- USDA: Guaranteed Rural Rental Housing Loan Program, Section 538. This program has been designed to increase the supply of affordable multifamily housing in rural areas through partnerships between Rural Development and major lending sources, as well as State and local housing finance agencies and bond insurers. The program provides Federal credit enhancement to encourage private and public lenders to make new loans for affordable rental properties that meet program standards.
- USDA: Rural Rental Housing Loan Program, Section 515
- USDA: The USDA Rural Development Housing and Community Facilities Programs offer rental assistance to individuals who are elderly, disabled, or low-income residents of multifamily housing complexes financed by the Housing and Community Facilities Programs. The Rental Assistance Program (Section 521) provides qualified applicants with subsidies for the difference between 30 percent of the tenants' household income and the fair market rent.
Fannie Mae offers financial products for affordable and market-rate rental housing on apartment buildings, condominiums, and cooperatives with five or more individual units. Fannie Mae multifamily programs include debt financing through lenders for small and large multifamily loans, seasoned pool purchases, and structured transactions. Fannie Mae-approved Delegated Underwriting and Servicing lenders can underwrite, close, and deliver most loans without pre-review by Fannie Mae. The company also provides credit enhancement for tax-exempt bonds issued to finance the acquisition, new construction, refinancing, or moderate or substantial rehabilitation of multifamily housing. Additionally, Fannie Mae offers forward commitments, which allow lenders to lock in rates.
Freddie Mac multifamily programs help to ensure an ample supply of affordable rental housing by purchasing mortgages on apartment buildings with five or more units. Freddie Mac enables the purchase, refinance, and rehabilitation of older buildings and the construction of new affordable apartments, as well as senior and student housing. Freddie Mac purchases loans on mid-rise, high-rise, walk-ups, garden-style apartment complexes, and co-op buildings (but not individual units). Freddie Mac offers loans for small (5-50 units) multifamily properties.