Finding creative solutions to increase affordability is a driving force behind our work in Multifamily. Last year we launched Sponsor-Initiated Affordability, a product that provides better pricing and underwriting flexibility when borrowers set aside a minimum of 20% of a property’s units that are rent restricted and occupied by households at or below 80% of area median income (AMI) for the life of the loan.
Since its introduction, we’ve seen increased interest in SIA and a growing pipeline. Both Multifamily Affordable Housing (MAH) borrowers and conventional borrowers are finding value in this product. MAH borrowers have used SIA as a bridge to future Land Use Restrictions Agreements (LURAs) and social impact and conventional borrowers have used the Affordability Agreements and compliance framework to voluntarily create and/or preserve workforce housing.