With Affordable and Structured Financing, Your Borrowers Win Big!
Last year, both Multifamily Affordable Housing (MAH) and Structured Transactions reached some incredible milestones – $7.8 billion and $11.6 billion in production respectively. Behind the numbers lie steadfast partnership, the agility and stability of the DUS® model, and creative financing solutions built for your customers.
Those strengths shine in the intersection of our MAH and Structured work – an area we’ve been active in since the 1990s, when facilities often held tax-exempt bond transactions. In recent years, interest has continued to grow, particularly for Section 8 properties or properties in the extended use period of a Low-Income Housing Tax Credit (LIHTC) regulatory agreement.
Structured financing is a great fit for affordable portfolios because:
We build solutions for your strategy.
Our experienced MAH and Structured team members will listen to your Borrowers’ business plans and develop the right solutions — and we’ll continue to provide expertise as strategies evolve. The product even anticipates adding, releasing, and substituting properties so that minimal additional documentation is required.
Customization comes standard. Affordable housing deals are often complex, requiring unique structures and solutions – something Credit Facilities are built to handle. No two deals are the same, so Facilities provide maximum flexibility, including permitting a combination of variable and fixed-rate debt with laddered maturities and flexible post-closing features.
Our adaptability is your advantage. Thanks to our flexible MBS, Borrowers can:
- Easily release assets from the facility when opportunistic sales arise;
- Execute on acquisition strategy with property additions; and
- Substitute properties with prepayment avoidance and continued low interest rates.
We look forward to working together!
Check out our Economics Team’s Multifamily Market Commentary on affordable housing market conditions related to COVID-19
To learn more about the solutions that Structured offers for MAH properties, contact us!