Recent changes to the Federal Housing Administration (FHA)-Housing Finance Agency (HFA) Risk-Sharing program, part of the Biden-Harris administration’s broader affordable housing initiatives, are aimed at increasing the construction of affordable multifamily housing. This program allows HFAs to partner with the Department of Housing and Urban Development to insure multifamily mortgages, sharing the risk of potential losses. By reintroducing this initiative with updated financing terms, the program aims to generate more affordable housing units across the country. One significant update is the introduction of an “interest rate collar,” a tool to provide more certainty for state and local HFAs. This mechanism caps and floors the interest rate, allowing HFAs to better plan financing costs during construction. With FHA insurance backing the mortgage, the Federal Financing Bank (FFB) purchases the mortgage, providing much-needed liquidity for new developments. These changes aim to stimulate the creation of more affordable rental units by mitigating financial risks for lenders. For affordable housing multifamily developers, the changes offer a strategic opportunity to access more favorable lower-cost financing and partner with HFAs. Developers should engage with HFAs to pursue FHA-insured loans backed by FFB and explore financing options under the Risk-Sharing program. Developers can capitalize on interest rate certainty by utilizing the new interest rate collar and better manage financing costs. These enhancements to the FHA-HFA Risking Sharing program are expected to drive the creation of approximately 38,000 affordable units over the next decade.