What's Happening in Affordable Multifamily?

Is it just one more product in a bunch, or is a shift on in affordable housing?

A private real estate lender yesterday launched a new “Affordable Loan Program” targeted to fund long-term, fixed  financing for multifamily affordable housing properties.

New York City’s [Greystone] (www.greyco.com), already had eight lending platforms focused on multifamily development, so adding the new affordable funding isn’t a stretch.

The company says it already is ranked as a top-10 Fannie Mae DUS lender by volume, one of a handful of companies that the federal says may authorize and close loans without the agency’s review, and is a top-5 Fannie Mae Multifamily Affordable Housing lender by volume.

But the new program is non-agency.  Greystone says it complements its existing Fannie Mae, Freddie Mac, and FHA lending platforms, and will providing borrowers with “a comprehensive range of options for financing affordable housing developments, acquisitions and rehabilitations.”

The new program offers 15- or 30-year term non-recourse mortgages for loans of $1 million minimum. Loan to value ratios can range from 80% to 85% for Low Income Housing Tax Credit properties.

The lender suggests that the program will speed up affordable housing development.  In its release, it notes

The availability of this fixed-rate financing structure enables borrowers to either obtain an early rate lock for long-term financing, where new construction and/or repairs can be completed during the forward rate lock period, or immediate funding for moderate rehab transactions, where repairs or renovations occur upon closing of the permanent mortgage.

Greystone lends through its its affiliates including Greystone Servicing Corp., Greystone Funding Corp., and others.

“We’re seeing more demand from borrowers as the affordable housing market matures, but there are few competitive financing solutions available today,” said Jeff Englund, managing director and head of Greystone’s Affordable Housing group in a press release statement. “Greystone’s Affordable Loan Program fills a widening gap in the affordable housing lending sector

The new program’s term sheets can be found [here] (http://www.greyco.com/Solutions/solutions_multifamily_mortgage_lending_affordable_housing.html).

 

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