Section 2101

Description

Requirements

An SDW Housing Property is a Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). where:

  • either
    • all rent restrictions are newly imposed by the Borrower BorrowerPerson who is the obligor per the Note. , or
    • new rent restrictions are being added to existing rent restrictions; and
  • the aggregate rent restrictions:
    • meet or exceed 20% @ 80%:  at least 20% of all units have rent restrictions in place making them affordable to households earning up to the following as adjusted for family size: 
      • 80% of AMI; or
      • 100% of AMI in an FHFA FHFAFederal Housing Finance Agency. -designated “cost-burdened” market; or
      • 120% of AMI in an FHFA FHFAFederal Housing Finance Agency. -designated “very cost-burdened” market;
    • are in place at the Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). by the Mortgage Loan Origination Date Mortgage Loan Origination DateDate you fund a Mortgage Loan to the Borrower. ; and
    • remain in place during the entire Mortgage Loan Mortgage 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. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 term.

An SDW Housing Property is ineligible if:

  • 3 or more years of LIHTC LIHTCFederal program offering tax credits to owners of eligible properties that contain low-income occupants and rent restrictions. restrictions remain; and
  • the Borrower BorrowerPerson who is the obligor per the Note. intends to enter into the Qualified Contract Process (per Internal Revenue Code Section 42) within 3 years after the Mortgage Loan Origination Date Mortgage Loan Origination DateDate you fund a Mortgage Loan to the Borrower. .

Guidance

  • FHFA FHFAFederal Housing Finance Agency. annually designates the “cost-burdened” and “very cost-burdened” markets.
  • As designated by FHFA FHFAFederal Housing Finance Agency. , the income threshold for affordability is:
    • 100% of AMI or below for “cost-burdened” markets; and
    • 120% of AMI or below for “very cost-burdened” markets.
  • This market designation is available in the: