NAHMA has received the following message from HUDs Multifamily Deputy Assistant Secretary, Ben Metcalf, regarding a recent partnership between HUD and the Treasury Departments Federal Financing Bank (FFB):
On June 26, 2014, Treasury Secretary Jack Lew announced a partnership between HUD and Treasury which will help Housing Finance Agencies eligible to participate to FHAs Multifamily Risk Share program create and preserve more affordable rental housing. By partnering with the Federal Financing Bank (FFB) to provide capital for multifamily mortgage loans insured through HUDs Multifamily Risk Share Program, the Administration will be able to provide liquidity to the market by reducing the cost of funds supporting affordable multifamily rental housing. This is an interagency partnership between HUD and the Department of Treasury.
We anticipate the first transaction under this budget neutral initiative to be an engagement with the New York City Housing Development Commission (NYCHDC). NYCHDC will originate and service the loans, FFB will purchase certificates backed by the mortgages, and FHA will insure the loans through the Risk Share Program. We look forward to working with additional partners eligible to participate in future transactions through this interagency partnership.
NAHMA also received the following question and answer document on this recent partnership between HUD and the Treasury: click here to read the Q&A document