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.
Benefits
- 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
Eligibility
- 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.
Pricing
Up to 30 basis points interest rate discount.
Term
5-30 years.
Amortization
Up to 35 years.
Sponsor Certification
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.
Interest Rate
Fixed- and variable-rate options available.
Maximum LTV
Varies by product type.
Minimum DSCR
Varies by product type.
Prepayment Availability
Flexible prepayment options available including yield maintenance and declining prepayment premium.
Loan Amount
No minimum or maximum.
Rate Lock
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.
Accrual
30/360 and Actual/360.
Recourse
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.
Third-Party Reports
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.
Assumption
Mortgage Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.
