Washington Post story is HERE.Under the new partnership with HUD, the FFB will provide financing for multifamily loans insured under FHA’s risk sharing programs. The new partnership between the Treasury Department and HUD will help create and preserve more decent rental housing by significantly reducing the interest rate for affordable multi-family apartment buildings compared to the cost of tax-exempt bonds under current market conditions.The New York City Housing Development Corporation (NYC-HDC) has worked extensively with HUD/FHA Risk Sharing, Treasury’s New Issue Bond Program, tax-exempt bonds, and other multifamily housing financing structures. HUD through FHA would provide mortgage insurance pursuant to a risk sharing agreement with NYC-HDC and the FFB would fund NYC-HDC mortgage loans for multifamily projects.The FFB is authorized to fund any obligation that is fully guaranteed by another Federal agency. The Risk Sharing program meets this requirement because FFB would purchase certificates or securities evidencing undivided beneficial ownership interests in 100 percent HUD/FHA-insured mortgages and HUD/FHA would cover 100% of the outstanding principal balance plus 100% of accrued interest in the event of a mortgage claim.
Oregon Housing and Community Services has a had FHA MF risk sharing program but their web site currently says it is suspended. Not clear whether new Treasury involvement would warrant lifting the suspension, what would be required to allow agency to participate, and whether benefits would be worth any additional costs.
Originally created and posted on the Oregon Housing Blog.