Fannie Mae announced that it is offering Sponsor-Initiated Affordability (SIA) incentives for multifamily borrowers, with the aim of preserving naturally occurring affordable housing (NOAH) and workforce housing. Property owners seeking Fannie Mae financing will be encouraged for rent and income restrictions for residents living in conventional workforce housing.
The SIA incentives, in the form of lower borrowing costs, will be offered to borrowers who agree to preserve or create a minimum of 20 percent of units in a multifamily property affordable to residents earning less than 80 percent of area median income (AMI), adjusted for family size, over the life of a loan with rents not exceeding 30 percent of AMI. The rent and income restrictions will be documented in an affordability agreement and will require annual certification.
