702.03F

Sponsor-Initiated Affordability

Requirements

You must ensure the Borrower BorrowerPerson who is the obligor per the Note. voluntarily self-imposes affordability restrictions preserving or creating multifamily affordable housing by requiring 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). to have affordability restrictions meeting all of the following:

  • 20% @ 80%:  at least 20% of all units are restricted to occupancy by households earning no more than 80% of AMI, as adjusted for family size, with rents not exceeding 30% of the income limit;
  • are recorded against 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 executing the Sponsor-Initiated Affordability Agreement ( Form 6490 );
  • 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. ;
  • require 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). to comply with the Sponsor-Initiated Affordability Agreement ( Form 6490 ) within 12 months after the Mortgage Loan Origination Date Mortgage Loan Origination DateDate you fund a Mortgage Loan to the Borrower. ;
  • remain in place during the 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; and
  • are certified annually by the Borrower BorrowerPerson who is the obligor per the Note. and monitored by an Administering Agent Administering AgentThird-party compliance monitoring company. for compliance with the Sponsor-Initiated Affordability Agreement ( Form 6490 ).

Operating Procedures

For any 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). with Sponsor-Initiated Affordability, the Borrower BorrowerPerson who is the obligor per the Note. must execute the:

  • Sponsor-Initiated Affordability Agreement ( Form 6490 ); and
  • Modifications to Multifamily Loan and Security Agreement (Sponsor-Initiated Affordability Restrictions) ( Form 6271 ).

For general information, as well as information for how to register, obtain a Commitment CommitmentContractual agreement between you and Fannie Mae where Fannie Mae agrees to buy a Mortgage Loan at a future date in exchange for an MBS, or at a specific price for a Cash Mortgage Loan, and you agree to Deliver that Mortgage Loan. and Deliver DeliverSubmission of all correct, accurate, and certifiable documents, data, and information with all applicable documents properly completed, executed, and recorded as needed, and any deficiencies resolved to Fannie Mae’s satisfaction. a Sponsor-Initiated Affordability Mortgage Loan, refer to the  Sponsor-Initiated Affordability FAQs .