Chapter 10

Healthy Housing Rewards

Section 1001

Healthy Housing Rewards

Requirements

Healthy Housing RewardsTM provides incentives for BorrowersBorrowersPerson who is the obligor per the Note. who incorporate healthy design features or provide enhanced resident services that improve the health and stability of residents of 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). .

You must not combine the Healthy Design product with the Enhanced Resident Services product.

Section 1002

Healthy Design

Requirements

Product Description

Eligibility

You must ensure:

 

  • 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). has rent or income restrictions where at least 50% of the units serve tenants with incomes of 80% of AMI or less.
  • 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). received a Fannie Mae recognized Healthy Design certification per Form 4248 before Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. .
  • The BorrowerBorrowerPerson who is the obligor per the Note. did not previously receive this benefit for the same PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). .

Certification Cost

Borrower'sBorrower'sPerson who is the obligor per the Note. responsibility.

Guidance

You may choose to pay the Borrower'sBorrower'sPerson who is the obligor per the Note. certification cost.  Fannie Mae will reimburse you for the certification cost after DeliveryDeliverySubmission 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. per the How to: Register, Quote, Close, and Deliver a Healthy Housing Rewards Mortgage Loan.

Section 1003

Enhanced Resident Services

Requirements

Product Description

Description

For BorrowersBorrowersPerson who is the obligor per the Note. who provide resident services that improve the health and well-being of tenants 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). .  Services must correspond to the needs of the tenant population.

Eligibility

You must ensure:

 

  • 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). has rent or income restrictions where at least 50% of the units serve tenants with incomes of 80% of AMI or less.
  • 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). received an Enhanced Resident Services (ERSERSEnhanced Resident Services ) certification before Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. .
  • 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). resident services provider received a Certified Organization for Resident Engagement & Services (CORES) certification before Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. .
  • The resident service provider is a CORES-certified:
    • BorrowerBorrowerPerson who is the obligor per the Note. ;
    • SponsorSponsorPrincipal equity owner and/or primary decision maker of the Borrower (often the Key Principal or the Person Controlling the Key Principal). or AffiliateAffiliateWhen referring to an affiliate of a Lender, any other Person or entity that Controls, is Controlled by, or is under common Control with, the Lender. When referring to an affiliate of a Borrower or Key Principal: any Person that owns any direct ownership interest in Borrower or Key…; or
    • third-party.
  • The BorrowerBorrowerPerson who is the obligor per the Note. did not previously receive this benefit for the same PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). .

Certification Cost

The BorrowerBorrowerPerson who is the obligor per the Note. is responsible for any cost of initial and ongoing certifications.

Underwriting

You must ensure:

 

  • 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). operating budget includes the costs of providing the services.
  • The underwritten expenses:
    • are equal to or greater than the annual dollar amount of the Healthy Housing Rewards ERSERSEnhanced Resident Services pricing reduction; and
    • include the pricing reduction and costs of providing the services.
  • A Payment Guaranty (Pricing Incentive Recapture) (Form 6020.PIR) is executed.

Guidance

You may choose to pay 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). initial ERSERSEnhanced Resident Services certification cost on behalf of the BorrowerBorrowerPerson who is the obligor per the Note. . Fannie Mae will reimburse you for 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). initial ERSERSEnhanced Resident Services certification cost after DeliveryDeliverySubmission 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. per the How to: Register, Quote, Close, and Deliver a Healthy Housing Rewards Mortgage Loan.

Stewards of Affordable Housing for the Future (SAHF) refers to the service provider certification as a CORES certification and the property-level certification as an Enhanced Resident Services Property certification.

To meet project timelines, you may permit the BorrowerBorrowerPerson who is the obligor per the Note. to obtain the

  • service provider certification before identifying the property, and 
  • PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). -level certification in conjunction with underwriting the 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. .

Both existing and proposed new services may be included to meet certification requirements.  If 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). offers sufficient existing services to receive the required certifications, the BorrowerBorrowerPerson who is the obligor per the Note. does not need to provide additional services.

 Operating Procedures

You calculate the Healthy Housing Rewards Enhanced Resident Services price reduction by multiplying the 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. amount by the ERSERSEnhanced Resident Services price incentive granted by Fannie Mae.