Healthy Housing Rewards™ Enhanced Resident Services™
Healthy Housing Rewards Enhanced Resident Services, a product feature that provides lower pricing to finance affordable properties with enhanced resident services that improve the health and stability of their residents.
Enhanced Resident Services include health and wellness services, work and financial capability support, and more.
- Lower interest rate
- Initial Sponsor certification and Property certification reimbursed by Fannie Mae
- Flexible underwriting to specific affordable developments
- Flexible loan terms, and fixed- or variable-rate financing options
- Certainty and speed of execution
- Affordable Multifamily Housing Properties with at least 60% of the units affordable to households earning no more than 60% of Area Median Income.
- Sponsors must obtain certification from an approved Fannie Mae provider.
- Borrowers must obtain Property-level certification from an approved Fannie Mae provider.
- One-time benefit per Borrower per Property. Cannot be combined with Healthy Housing Rewards Healthy Design benefits.
Up to 30 basis points interest rate discount.
Up to 35 years.
Cost of initial Sponsor certification will be 100% reimbursed by Fannie Mae. Sponsor must obtain recertification every 5 years.
Property Level Certification
Cost of initial property-level certification will be 100% reimbursed by Fannie Mae. Borrower must obtain yearly Property re-certification.
Fixed- and variable-rate options available.
Varies by product type.
Varies by product type.
Flexible prepayment options available including yield maintenance and declining prepayment premium.
No minimum or maximum.
30- to 180-day commitments. Borrowers may use the Streamlined Rate Lock option. Confirmation of Sponsor-level and Property-level Enhanced Resident Services certifications is required prior to Rate Lock.
30/360 and Actual/360.
Non-recourse execution is available, with required standard carve-outs for “bad acts” such as fraud and bankruptcy, as well as failure to maintain Sponsor/property level certifications or Sponsor control requirements.
Standard third-party reports, including Appraisal, Phase I Environmental Assessment, and a Property Condition Assessment, are required. Confirmation of Healthy Housing Rewards eligibility is required.
Mortgage Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.