Chapter 22
| Section 2201 | |
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Requirements
An SDW Housing Property is a PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). where:
- either
- all rent restrictions are newly imposed by the BorrowerBorrowerPerson who is the obligor per the Note. , or
- new rent restrictions are being added to existing rent restrictions; and
- the aggregate rent restrictions:
- meet or exceed 20% @ 80%: at least 20% of all units have rent restrictions in place making them affordable to households earning up to the following as adjusted for family size:
- are in place at the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). by the Mortgage Loan Origination DateMortgage Loan Origination DateDate you fund a Mortgage Loan to the Borrower. ; and
- remain in place during the entire Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. term.
An SDW Housing Property is ineligible if:
- 3 or more years of LIHTCLIHTCFederal program offering tax credits to owners of eligible properties that contain low-income occupants and rent restrictions. restrictions remain; and
- the BorrowerBorrowerPerson who is the obligor per the Note. intends to enter into the Qualified Contract Process (per Internal Revenue Code Section 42) within 3 years after the Mortgage Loan Origination DateMortgage Loan Origination DateDate you fund a Mortgage Loan to the Borrower. .
Guidance
- FHFAFHFAFederal Housing Finance Agency. annually designates the “cost-burdened” and “very cost-burdened” markets.
- As designated by FHFAFHFAFederal Housing Finance Agency.
, the income threshold for affordability is:
- 100% of AMI or below for “cost-burdened” markets; and
- 120% of AMI or below for “very cost-burdened” markets.
- This market designation is available in the:
- Very Cost-Burdened and Cost-Burdened Renter Multifamily Markets; and
- “Sponsor-Dedicated Workforce (SDW) Housing” section of the Affordable Housing Data Guidance Job Aid.
| Section 2202 | |
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Requirements
You must:
- ensure the Borrower’sBorrower’sPerson who is the obligor per the Note.
execution of the:
- Modifications to Multifamily Loan and Security Agreement (Sponsor-Dedicated Workforce Housing) (Form 6271.SDW); and
- Modifications to Security Instrument (Sponsor-Dedicated Workforce Housing) (Form 6325);
- require the Property’sProperty’sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). compliance within 12 months after the Mortgage Loan Origination DateMortgage Loan Origination DateDate you fund a Mortgage Loan to the Borrower. ; and
- ensure the SDW units are at least proportional to the Property’sProperty’sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). overall unit mix.
Guidance
An example of an acceptable unit mix is:
| Sample 100-Unit Building | ||
|---|---|---|
| Apartment Type | Number of Units | Minimum 20% Unit Mix |
| Studio | 10 | 2 |
| 1 Bedroom | 50 | 10 |
| 2 Bedroom | 30 | 6 |
| 3 Bedroom | 10 | 2 |
| Total | 100 | 20 |
Operating Procedures
You must use the Sponsor-Dedicated Workforce (SDW) Housing Job Aid to commit and DeliverDeliverSubmission of all correct, accurate, and certifiable documents, data, and information with all applicable documents properly completed, executed, and recorded as needed, and any deficiencies resolved to Fannie Mae’s satisfaction. a Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. qualifying for a Sponsor-Dedicated Workforce Housing pricing incentive.