Greystone Contributes Deep Affordable Housing Lending Experience to Development of New Fannie Mae Small Loan Enhancement
June 21, 2016
A Top-5 Fannie Mae Affordable and Small Loans Lender, Greystone is Poised to Combine These Disciplines with Stellar Results
Greystone is working with Fannie Mae on a new Multifamily Affordable Housing (MAH) financing enhancement to Fannie Mae’s underwriting guidelines for small loans. The new financing option enables Greystone to leverage its existing, top-rated MAH finance expertise for acquisitions and refinancings of smaller affordable housing properties requiring loans up to $5 million.
To qualify for the new Fannie Mae MAH Small Loan financing, properties must meet specific rent, income and/or occupancy restrictions, including one of the following:
- At least 20% of all units have rent or income restrictions in place such that the rents charged for those units are affordable to households earning no more than 50% of Area Median Income (“AMI”) as adjusted for family size;
- At least 40% of all units have rent or income restrictions in place such that the rents charged for those units are affordable to households earning no more than 60% of AMI as adjusted for family size;
- At least 20% of all units are subject to a Section 8 Housing Assistance Payment contract; or
- The property (i) has other rent and/or income restrictions, and (ii) meets a noteworthy special public purpose. Such a property may be considered on a waiver basis for eligibility as an MAH Property.
The maximum size loan available through this program ranges from $3 million to $5 million, depending on the geographical region. The loans include fixed rate and adjustable rate at 7-year terms or longer.
“The new Fannie Mae Small Loans financing parameters for affordable housing are a game changer for the affordable sector, opening up a fantastic permanent loan option for owners and investors of affordable housing nationwide,” said Jeff Englund, Senior Managing Director and head of Greystone’s Affordable Housing financing group. “With our long-established practices in both affordable and small loan executions, we have the speed and efficiency to ramp up quickly on this new product.”
Mr. Englund added, “Enabling attainable financing for income- and age-restricted communities is critical to the survival of much-needed affordable housing in the U.S., and Greystone remains committed to this sector as a leader in affordable housing finance.”