This directory provides links to resources and information for banks, thrifts, and others interested in multifamily finance and investment programs.
Guidance and Resources
Real Estate Lending
The Office of the Comptroller of the Currency’s (OCC) Comptroller’s Handbook booklet, “Commercial Real Estate Lending ,” August 2013, provides guidance for bank examiners and bankers on commercial real estate (CRE) lending activities. For the purposes of this booklet, CRE lending comprises acquisition, development, and construction (ADC) financing and the financing of income-producing real estate.
Guidelines for Real Estate Lending Policies
Concentrations in Commercial Real Estate Lending, Sound Risk Management Practices (PDF) - Vol. 71 FR 74580, 2006-12-12, No. 238
Risk-Based Capital Treatment
OCC offers publications on topics related to multifamily and community development.
- Affordable Housing - Multifamily article archive
- "Effective Strategies (PDF 2.7 MB) for Community Development Finance"
- "Focus on Affordable Multifamily Housing," (PDF) , Community Developments newsletter, spring 2000
- Preservation of Affordable Multifamily Housing, Community Developments newsletter, spring 2008
- Small Multifamily Rental Property Financing Community Developments newsletter, Spring 2015
- "USDA Rural Housing Finance Programs: Loan Guarantee, Leveraged Loan, and Multifamily Loan," (PDF) Community Developments Fact Sheet
- Community Affairs: Rural Community Development Banking Resource Directory
- Community Development Resource Guide (PDF)
- "Federal Home Loan Bank Programs for Community Investments," (PDF) Community Developments Fact Sheet
- Community Reinvestment Act (CRA) - Banks and thrifts may receive positive CRA consideration for their participation in loans or investments in affordable multifamily housing.
- OCC and Interagency Council on Homelessness Hosted Webinar on Bank Financing of Permanent Supportive Housing, April 25, 2012: This joint webinar provided an overview of bank financing of permanent supportive housing for people experiencing homelessness. Speakers provided background information and addressed how banks and thrifts can finance permanent supportive housing by investing in low-income housing tax credits and pre-development loan pools.
The PowerPoint presentation accompanying the webinar is titled, Financing Opportunities: Banks Assisting in Ending Homelessness, by Deputy Comptroller for Community Affairs Barry Wides.
Community Development Investments Resources under the Public Welfare Investment Authority,
Under the 12 CFR 24 public welfare investment authority, banks may invest, directly or indirectly, in real estate development. Real estate development includes affordable multifamily housing projects that primarily benefit low- and moderate-income individuals, low- and moderate-income areas, or other areas targeted by a government entity for redevelopment. Banks may also invest under 12 CFR 24 if the investment would receive consideration under 12 CFR 25.23 (the CRA regulation) as a "qualified investment." Also see the OCC's public welfare investments (12 CFR 24) and its uses. Federal savings associations may make public welfare investments under specific authorities that are described on the OCC’s Public Welfare Investments Web Resource Directory: https://www.occ.gov/topics/community-affairs/resource-directories/public-welfare-investments/federal-savings-association-investment-authorities.html.
Low Income Housing Tax Credit Program
This program encourages investment in multifamily housing targeted to low-income households. OCC offers several publications with information about the program for banks and thrifts.
Small City Economic Dynamism is a dataset compiled by the Federal Reserve Bank of Atlanta that was used to create the Small City Dynamism Index to help policy makers and practitioners gain more nuanced perspectives. The index ranks 244 small U.S. cities across 14 indicators of economic dynamism in four categories: demographics, economics, human capital, and infrastructure.
The County Health Rankings & Roadmaps program is a collaboration between the Robert Wood Johnson Foundation and the University of Wisconsin Population Health Institute. The annual Rankings provide a revealing snapshot of how health is influenced by where we live, learn, work and play. The Roadmaps provide guidance and tools to understand the data, and strategies that communities can use to move from education to action.
Harvard University's Joint Center for Housing Studies' report on The State of the Nation's Housing 2014 provides a current assessment of the state of the housing market and the foreclosure crisis; the economic and demographic trends driving housing demand; the state of mortgage finance; and ongoing housing affordability challenges. To see the report, click here.
A Harvard Joint Center for Housing Studies working paper cites the critical role nonprofits play in the home improvement and repair industry. The nonprofits listed were: NeighborWorks America, Enterprise Community Partners, Local Initiatives Support Corporation, Rebuilding Together and Habitat for Humanity. Get the paper by clicking here.
The Community Land Trust (CLT) Network’s Research Collaborative partnered with Meagan Ehlenz, a doctoral student at the University of Pennsylvania, to produce a report titled, “Limited Equity Coops by Community Land Trusts: Case Studies and a Feasibility Assessment for the Hybrid Model”. The report includes detailed project summaries of coop projects developed by CLTs and a tool to evaluate the feasibility of prospective limited equity coop projects. View the report and related resources on CLT-LEC projects here.
Multifamily Finance Programs
U.S. Department of Housing and Urban Development (HUD) Multifamily Housing Programs
Lenders approved by HUD can participate in Federal Housing Administration (FHA) multifamily mortgage insurance programs, including programs for new construction, substantial rehabilitation, and refinance of rental and cooperative housing, as well as special needs, assisted living, and seniors housing. HUD also operates the Section 8 voucher program, which subsidizes rent payments for low-income individuals.
Federal Home Loan Banks
The Federal Home Loan Banks, through their affordable housing and community development programs, are serving lower income households, as they have since 1990. Federal Housing Finance Agency is responsible for establishing Affordable Housing Goals, maintaining data, annual reporting, and developing regulatory policies, as well as, conducting off-site monitoring and examinations of the Federal Home Loan Banks' housing and community investment programs and activities.
HUD Special Needs Multifamily Housing Programs
HUD Section 8 Programs
- HUD: Section 8 Rental Certificate Program is designed to serve very low-income families by providing a subsidy for the difference between 30 percent of the tenant's household income and the fair market rent.
- HUD: Office of Recapitalization, provides assistance and information for preservation of properties with expiring subsidies.
U.S. Department of Agriculture Rural Housing
The U.S. Department of Agriculture (USDA) offers several Rural Development Multifamily Housing Programs that offer loans and grants to developers of low-income community housing.
Fannie Mae offers financial products for affordable and market-rate rental housing on apartment buildings, condominiums, and cooperatives with five or more individual units. Fannie Mae multifamily programs include debt financing through lenders for small and large multifamily loans, seasoned pool purchases, and structured transactions. Fannie Mae-approved Delegated Underwriting and Servicing lenders can underwrite, close, and deliver most loans without pre-review by Fannie Mae. The company also provides credit enhancement for tax-exempt bonds issued to finance the acquisition, new construction, refinancing, or moderate or substantial rehabilitation of multifamily housing. Additionally, Fannie Mae offers forward commitments, which allow lenders to lock in rates.
Fannie Mae published a report discussing its role in the small multifamily loan market in early 2011.
Freddie Mac multifamily programs help to ensure an ample supply of affordable rental housing by purchasing mortgages on apartment buildings with five or more units. Freddie Mac enables the purchase, refinance, and rehabilitation of older buildings and the construction of new affordable apartments, as well as senior and student housing. Freddie Mac purchases loans on mid-rise, high-rise, walk-ups, garden-style apartment complexes, and co-op buildings (but not individual units). Freddie Mac purchases these loans from its network of Program Plus and Targeted Affordable Housing Correspondents with over 100 branches nationwide.
Industry Multifamily Resources
- The Community Land Trust (CLT) Network’s Research Collaborative partnered with Meagan Ehlenz, a doctoral student at the University of Pennsylvania, to produce a report titled, “Limited Equity Coops by Community Land Trusts: Case Studies and a Feasibility Assessment for the Hybrid Model”. The report includes detailed project summaries of coop projects developed by CLTs and a tool to evaluate the feasibility of prospective limited equity coop projects. View the report and related resources on CLT-LEC projects here.
- A Harvard Joint Center for Housing Studies working paper cites the critical role nonprofits play in the home improvement and repair industry. The nonprofits listed were: NeighborWorks America, Enterprise Community Partners, Local Initiatives Support Corporation, Rebuilding Together and Habitat for Humanity. Get the paper by clicking here.
- The National Housing Conference and Center for Housing Policy are sister nonprofit corporations working on multifamily housing policy and research. They have developed a suite of materials exploring lifecycle (LC) underwriting. Lifecycle Underwriting – Analyzing the Lifecycle Costs of Affordable Multifamily Rental Housing: Representing a new way of thinking about the costs of multifamily affordable rental housing.
- Enterprise Community Partners Inc. is a national nonprofit intermediary with more than 25 years of experience in the community development and affordable housing field and is the leading provider of capital and expertise for affordable housing and community development.
- Local Initiatives Support Corporation, a national nonprofit intermediary, assembles private and public resources, enabling local organizations to access national resources and expertise and funding partners to leverage their investments.
- Housing Assistance Council, a national nonprofit intermediary, was created to increase the availability of decent and affordable housing for rural, low-income people.
- National Association of Affordable Housing Lenders is a membership organization committed to increasing private lending and investing in low- and moderate-income communities for affordable housing and community economic development through its private sector lenders and investors.
- National Association of Housing and Redevelopment Officials is a housing and community development organization whose members administer such HUD programs as public housing, Section 8, community development block grants, and HOME.
- National Housing Trust is a nonprofit intermediary dedicated to the preservation of federally assisted, decent, safe, and affordable housing.
- Mortgage Bankers Association, a membership organization, represents the real estate finance industry.
- National Association of Home Builders, a membership organization, represents the home building industry, including multifamily builders and developers.
- National Multi Housing Council, a membership organization, represents firms engaged in all aspects of the apartment industry including ownership, development, management, and financing.
Multifamily Housing Data
- Urban Institute’s Housing Assistance Matters Initiative highlights research and analysis about the need for and benefits of well-managed public and assisted housing. Using a multimedia approach, this initiative draws upon research by Urban Institute scholars and others to explore key connections between all forms of rental assistance and outcomes for individuals, families, and communities. [The map is interactive. Simply run your cursor over the map and county data will appear.]
- Center for Housing Policy’s new report from Senior Research Associate Robert Hickey, is titled The Role of Community Land Trusts in Fostering Equitable Transit-Oriented Development: Case Studies from Atlanta, Denver, and the Twin Cities.
The new report, published in conjunction with the Lincoln Institute of Land Policy and the National Community Land Trust Network, explores how Community Land Trusts (CLTs) are helping to ensure that affordably priced, transit-accessible single and multifamily homes will continue to be available for lower-income households as regions like Atlanta, Denver, and the Twin Cities expand and create new transit systems.
- Housing Assistance Council Publications and Data on USDA Rural Development
- HUD User
- HUD Multifamily Data
- Center for Housing Policy's "Paycheck to Paycheck" database (measures of wages and housing costs)
- National Multi Housing Council's Research and Insights
- Mortgage Bankers Association's Products and Surveys
Energy Conservation and Green Building Resources