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Legislative Alert: FFB Risk-Sharing Program Set to Expire, Contact HUD Today!

Posted By Administration, Wednesday, August 22, 2018

The Federal Housing Administration (FHA) – Housing Finance Agency (HFA) Multifamily Loan Risk-Sharing FFB Program is an important option for many HFAs affordable rental housing developments. The Risk-Sharing program was created by Congress in 1992 to help expedite and increase FHA’s multifamily mortgage production. Through the program, HFAs are able to underwrite and service FHA multifamily loans in exchange for sharing up to 50 percent of the risk of losses on those loans. The program has been a success, allowing the government to save money, improving housing affordability, and reducing risks to the FHA insurance fund. The program has provided over $2 billion in financing and over 20,000 affordable homes across the country.

 

Unfortunately, the US Department of Housing and Urban Development (HUD) is considering letting the FFB Risk-Sharing Program expire at the end of September. If that were to happen, HFAs would lose a powerful tool to finance much needed affordable housing. Instead, HUD and Treasury should extend the program agreement and allow additional loan authority to help finance the pipeline of affordable housing developments in need of this low-cost capital. The program should be extended at least until a permanent solution can be reached, which would require legislation to allow Ginnie Mae loans to be securitized through Risk-Sharing.

 

Take Action:

 

NALHFA has sent a letter to leadership at HUD communicating the importance of saving this critical program. NALHFA members are encouraged to use this letter as a template to tell the story to HUD of how the FFB Risk-Sharing program helps produce and preserve affordable housing in your community. The NALHFA government relations team will continue to communicate with HUD on this topic and will provide updates as they become available. If you have any questions, please contact NALHFA Policy Director, Heather Voorman at 202.367.2405 or hvoorman@nalhfa.org

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