It’s hard to believe that summer will soon come to an end. It’s been a busy year and with your partnership, we will end the year strong.
Top of mind, of course, is Hurricane Ida. We are monitoring the damage and aftermath it is having on many individuals and communities across the country. Our thoughts are with everyone impacted, and as always, our Disaster Response Network™ is available for renters in need of storm-related assistance.
Visit the Disaster Response Network page
Production Update
We continue to see strong volumes with $4.9 billion in production as of June 2021 - we can’t thank you enough for your partnership! This compares to $3.0 billion over the same period in 2020. We know that the MAH business is weighted to the second half of the year and that continues to be the trend.
We are seeing elevated levels of pipeline activity and are watching closely so that we can do our best to manage it efficiently. We’re working behind the scenes to use available technology to streamline where possible and have a solid staff in place working hard on your deals. We ask that you continue to work with your MAH deal teams to help us prioritize and that you keep your pipelines updated – this is an important indicator of market conditions and we want to be sure that we are meeting your needs and continue our streak of winning great business together.
Duty to Serve
Fannie Mae’s Duty to Serve initiative focuses on three key markets: manufactured housing, affordable housing preservation, and rural housing. In rural housing, we are specifically targeting high-needs rural regions and persistent poverty counties in rural areas. Through the end of 2020, we have financed over 15,000 units of affordable housing in high-needs rural regions. But there is more we can do.
To learn more about how to identify Duty to Serve High Needs Rural Regions, we have updated our Affordability Estimator to include County-Level DTS High Needs Rural Regions Eligibility.
Visit Updates to the Affordability Estimator
And, to help our lenders identify census tracts that meet the regulatory definition of high-needs rural, FHFA resources include a High-Needs Counties and Rural Tracts Map and can access the data file as needed.
We continue to lead the industry in Tenant Site Lease protections (TSLP) in Manufactured Housing Communities (MHCs). Since the launch of the TSLP program in 2019, we’ve provided over 16,000 households with additional protections not included in their standard lease or required by state or local laws. We thank you for your valued partnership in expanding this important resource and embracing our efforts to preserve the affordability of MHCs.
Deal Spotlight
The MBS as Tax-Exempt Collateral (MTEB) continues to be hot. It remains one of the most competitive executions out there.
We want to share another deal that we recently completed that demonstrates just how effective MTEB can be. In Gypsum, Colorado, we completed a $20 million MTEB Forward. Spring Creek Apartments is a LIHTC deal that garnered solid public support through subordinate notes from both the State and County and the property qualifies for a 100% tax exemption. Spring Creek is a modular constructed property where large elements were prefabricated about 750 miles away, transported and assembled and finished on-site. The final outcome will be 150 units with affordability at 50% - 60% AMI with 4 units at below 30% AMI. The modular construction will consist of five new buildings and a clubhouse with leasing office.
CDC Moratorium | CFPB Resources | Know Your Options
On August 26, the US Supreme Court issued their decision regarding the Centers for Disease Control and Prevention (CDC) eviction moratorium rendering the CDC order unenforceable and stating that Congress must act to impose a federal eviction moratorium. Charles Ostroff’s most recent Wire contained important information and links to resources that are available through the Consumer Financial Protection Bureau and our Know Your Options site.
Let’s keep up the great momentum we have achieved this year. We will continue to monitor the pipeline closely as we approach the end of the year. Even in challenging times, our partnership is strong, and we look forward to keeping up our efforts to end the year as strong as we started.
Annual LIHTC Investment Cap
Fannie Mae announced that effective immediately, the Federal Housing Finance Agency (FHFA) has increased the annual cap on Fannie Mae’s LIHTC equity investment activities to $850 million as part of our ongoing effort to provide capital for affordable rental housing, especially in underserved markets.
Read more.