January 17, 2018Fannie Mae Introduces Enhanced Resident Services as Part of its Healthy Housing Rewards Initiative
Financial Incentive Offered to Affordable Multifamily Borrowers Who Provide Services that Improve Tenant Health and Wellbeing
WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today Enhanced Resident Services™, a new product enhancement aimed at encouraging multifamily borrowers to provide resident services that improve the health and wellbeing of tenants in affordable housing. This incentive, in the form of a lower borrowing rate, aims to foster services that address the needs of renters and support health and wellness programs, day care, food access, youth and education programming, and job training.
Enhanced Resident Services is the next stage of Fannie Mae’s Healthy Housing Rewards™ initiative, which aims to advance the development of sustainable communities and the availability of affordable housing by encouraging affordable multifamily borrowers to implement healthy design features and resident services that improve the health and stability of residents.
“We believe that the strength of an affordable rental housing property is directly linked to the health and stability of the people and families who live there,” said Bob Simpson, Vice President of Affordable and Green Financing, Fannie Mae. “Affordable borrowers have recognized the value of providing enhanced resident services at their properties for years, but have been constrained by the inability to ensure a long term source of financial support. By participating in our Healthy Housing Rewards program, borrowers will save between $15,000 and $75,000 per year. Amounts saved can be used to offset resident services costs at their property for the life of the loan - thus ensuring that the low income residents who live there have access to health, education and other community services.”
Fannie Mae will implement Enhanced Resident Services with Stewards for Affordable Housing for the Future (SAHF), a nonprofit multi-state group of affordable housing providers that offers initial and ongoing compliance certifications for both the borrower and the multifamily affordable housing property providing the special services. To qualify, at least 60 percent of the units in multifamily properties seeking the pricing incentive must serve residents earning at 60 percent of average median income or less. The program is available to borrowers as of January 15, 2018.
“Healthy Housing Rewards Enhanced Resident Services is a groundbreaking approach to supporting individuals and families in affordable rental housing,” said Eileen Fitzgerald, President and CEO of SAHF. “We congratulate Fannie Mae on their innovation and foresight in creating a financing strategy that supports ongoing resident services that improve health and wellness and fosters economic opportunity and independence for low-income individuals and families.“
As the leading source of financing in the multifamily sector, Fannie Mae remains a reliable partner across the spectrum of the nation’s rental housing needs. To learn more about Fannie Mae’s Multifamily business, visit https://www.fanniemae.com/multifamily. To learn more about the Healthy Housing Rewards program, visit https://www.fanniemae.com/multifamily/healthy-housing-rewards.
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/fanniemae.