Chapter 10

Healthy Housing Rewards

Section 1001	Healthy Housing Rewards

Requirements

Healthy Housing Rewards^TM provides incentives for BorrowersBorrowersPerson who is the obligor under the Note. who incorporate healthy design features or provide enhanced resident services that improve the health and stability of residents of the PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in 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 property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). is an MAH PropertyMAH PropertyProperty encumbered by a regulatory agreement, land use restriction agreement, extended use agreement, or similar restriction that limits rents that can be charged to tenants, or imposes income limits on tenants. with rent or income restrictions where at least 60% of the units are serving tenants with incomes of 60% of AMI or less. The PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). receives a Fitwel® certification before Rate LockRate LockAgreement between the Lender 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 under the Note. or an 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… did not previously receive this benefit for the same PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). .
Certification Cost	BorrowerBorrowerPerson who is the obligor under the Note.’s responsibility.

Product Description

Eligibility

You must ensure:

The PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). is an MAH PropertyMAH PropertyProperty encumbered by a regulatory agreement, land use restriction agreement, extended use agreement, or similar restriction that limits rents that can be charged to tenants, or imposes income limits on tenants. with rent or income restrictions where at least 60% of the units are serving tenants with incomes of 60% of AMI or less.
The PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). receives a Fitwel® certification before Rate LockRate LockAgreement between the Lender 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 under the Note. or an 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… did not previously receive this benefit for the same PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). .

Certification Cost

BorrowerBorrowerPerson who is the obligor under the Note.’s responsibility.

Guidance

You may choose to pay the BorrowerBorrowerPerson who is the obligor under the Note.’s certification cost. Fannie Mae will reimburse you for the certification cost upon DeliveryDeliveryMeeting all of the data delivery requirements in , and submitting an acceptable Mortgage Loan Delivery Package per Part IV A: Mortgage Loan Commitment, Delivery and Purchase Procedures, Chapter 5. A Mortgage Loan is “Delivered,” when all documents, data, and information are correct, accurate, and….

Operating Procedures

Fitwel^® Certification Process

To obtain a Fitwel^® certification, the BorrowerBorrowerPerson who is the obligor under the Note. must:

review the free Fitwel^® for Multifamily Residential Scorecard available at www.fitwel.org/resources;
decide if the certification is appropriate;
begin the process by registering online at www.fitwel.org; and
submit all application materials.

The review and certification process takes approximately 6 weeks.

DUS Gateway Process

To register a Healthy Design Property in DUS GatewayDUS GatewayMultifamily pre-acquisition system including deal registration, Pre-Review and/or waiver tracking, decision records, or any successor systems. :

select the Pricing/Fees category;
select the Healthy Design Certification subcategory; and
obtain a pricing quote that may include a pricing incentive.

Before Rate LockRate LockAgreement between the Lender 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. , you must upload the following documents to DUS GatewayDUS GatewayMultifamily pre-acquisition system including deal registration, Pre-Review and/or waiver tracking, decision records, or any successor systems. as Third-Party Reports, with the Document type set to Healthy Design Certification:

Fitwel^® Star Rating Certificate; and
BorrowerBorrowerPerson who is the obligor under the Note.’s invoice or payment receipt from Fitwel^®.

If you choose to pay the BorrowerBorrowerPerson who is the obligor under the Note.’s certification cost and request reimbursement from Fannie Mae, you must upload the following additional documents as Third-Party Reports, with the Document type set to Healthy Design Certification:

your invoice to Fannie Mae for reimbursement of the certification cost; and
completed Servicing Advances Payment Reimbursement Request (Form 4829).

To receive reimbursement, you must request the reimbursement from the Deal TeamDeal TeamTeam responsible for reviewing Pre-Review Mortgage Loans, waivers, etc. via chatter in DUS GatewayDUS GatewayMultifamily pre-acquisition system including deal registration, Pre-Review and/or waiver tracking, decision records, or any successor systems. and DeliverDeliverMeeting all of the data delivery requirements in , and submitting an acceptable Mortgage Loan Delivery Package per Part IV A: Mortgage Loan Commitment, Delivery and Purchase Procedures, Chapter 5. A Mortgage Loan is “Delivered,” when all documents, data, and information are correct, accurate, and… 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. as Healthy Housing Rewards.

Section 1003	Enhanced Resident Services

Requirements

Product Description
Description	For BorrowersBorrowersPerson who is the obligor under the Note. who provide resident services that improve the health and well-being of tenants at the PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). . Services must correspond to the needs of the tenant population.
Eligibility	You must ensure: The PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). is an MAH PropertyMAH PropertyProperty encumbered by a regulatory agreement, land use restriction agreement, extended use agreement, or similar restriction that limits rents that can be charged to tenants, or imposes income limits on tenants. with rent or income restrictions where at least 60% of the units are serving tenants with incomes of 60% of AMI or less. The PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). receives an Enhanced Resident Services (ERSERSEnhanced Resident Services ) certification before Rate LockRate LockAgreement between the Lender 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 SponsorSponsorPrincipal equity owner and/or the primary decision maker of the Borrower (often the Key Principal or the Person Controlling the Key Principal). receives a Certified Organization for Resident Engagement & Services (CORES) certification before Rate LockRate LockAgreement between the Lender 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 under the Note. or an 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… did not previously receive this benefit for the same PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). .
Certification Cost	BorrowerBorrowerPerson who is the obligor under the Note.’s responsibility for the cost of all initial and ongoing PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). and SponsorSponsorPrincipal equity owner and/or the primary decision maker of the Borrower (often the Key Principal or the Person Controlling the Key Principal). certifications.
Underwriting	You must ensure: The SponsorSponsorPrincipal equity owner and/or the primary decision maker of the Borrower (often the Key Principal or the Person Controlling the Key Principal). demonstrates a commitment to providing meaningful, coordinated resident services as part of its long-term business strategy. The PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). ’s 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 ERS pricing reduction. The underwritten expenses include the pricing reduction and costs of providing the services. A GuarantorGuarantorKey Principal or other Person who executes a Payment Guaranty, a Non-Recourse Guaranty, or any other guaranty in connection with the Mortgage Loan. provides a Non-Recourse GuarantyNon-Recourse GuarantyGuaranty executed by a Key Principal on Form 4501 series or Form 6015 series, or approved by Fannie Mae. for losses resulting from failure to comply with the Healthy Housing Rewards terms of the Loan DocumentsLoan DocumentsAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. . This GuarantyGuarantyPayment Guaranty, Non-Recourse Guaranty, or other guaranty by a Guarantor for the Mortgage Loan. must be incorporated into the Multifamily Guaranty of Non-Recourse Obligations (Form 6015 series) or covered in a separate guaranty from the SponsorSponsorPrincipal equity owner and/or the primary decision maker of the Borrower (often the Key Principal or the Person Controlling the Key Principal). .

Guidance

You may choose to pay the PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). ’s initial ERSERSEnhanced Resident Services certification cost on behalf of the BorrowerBorrowerPerson who is the obligor under the Note.. Fannie Mae will reimburse you for the PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). ’s initial ERSERSEnhanced Resident Services certification cost upon DeliveryDeliveryMeeting all of the data delivery requirements in , and submitting an acceptable Mortgage Loan Delivery Package per Part IV A: Mortgage Loan Commitment, Delivery and Purchase Procedures, Chapter 5. A Mortgage Loan is “Delivered,” when all documents, data, and information are correct, accurate, and….

Stewards of Affordable Housing for the Future (SAHF) refers to the SponsorSponsorPrincipal equity owner and/or the primary decision maker of the Borrower (often the Key Principal or the Person Controlling the Key Principal). -level certification as a CORES certification and the property-level certification as an Enhanced Resident Services Property certification.

Services that improve the health and well-being of tenants may support, among other things:

health and wellness programs;
food access;
youth and education programming;
community engagement;
job training;
financial literacy; and
housing stability.

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

SponsorSponsorPrincipal equity owner and/or the primary decision maker of the Borrower (often the Key Principal or the Person Controlling the Key Principal). -level certification before identifying the property, and
PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in 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 property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). offers sufficient existing services to receive the required certifications, the BorrowerBorrowerPerson who is the obligor under 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.

DUS Gateway Process

You must register the deal in DUS GatewayDUS GatewayMultifamily pre-acquisition system including deal registration, Pre-Review and/or waiver tracking, decision records, or any successor systems. and obtain the pricing quote by selecting both of the following options on the Pre-Review and/or Waiver Edits Screen.

Category	Pre-Review (4660)	Pricing/Fees
Sub-category	Property Operations & Underwriting Terms	Enhanced Resident Services Certification
Descriptor	Healthy Housing Rewards – Enhanced Resident Services	N/A

Prior to Rate LockRate LockAgreement between the Lender 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. , you must upload the following documents to DUS GatewayDUS GatewayMultifamily pre-acquisition system including deal registration, Pre-Review and/or waiver tracking, decision records, or any successor systems. as Third-Party Reports, with the Document type set to “Enhanced Resident Services Certification”:

the SponsorSponsorPrincipal equity owner and/or the primary decision maker of the Borrower (often the Key Principal or the Person Controlling the Key Principal). -level certification;
the PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). -level certification; and
BorrowerBorrowerPerson who is the obligor under the Note.’s invoice or payment receipt from SAHF for the PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). -level certification.

If you choose to pay for the BorrowerBorrowerPerson who is the obligor under the Note.’s initial PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). -level certification and request reimbursement from Fannie Mae, you must upload the following additional documents as Third-Party Reports, with the Document type set to Enhanced Resident Services Certification:

your invoice to Fannie Mae for reimbursement of the PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). -level certification cost; and
completed Form 4829.