Fannie Mae has expanded eligibility for its Healthy Housing Rewards™ program, meaning more properties can now qualify for pricing incentives by incorporating health-promoting features (Healthy Design) or high-quality resident services (Enhanced Resident Services).
The Healthy Housing Rewards program was previously only available to rent- or income-restricted properties where at least 60% of units served renters with incomes at 60% of AMI or less. The new change opens eligibility to rent- or income-restricted properties where at least 50% of the units serve renters with incomes at 80% of AMI or less.
"This not only means that more Multifamily Affordable Housing (MAH) properties can qualify, but it opens the door for borrowers utilizing Sponsor-Initiated Affordability to achieve layered pricing discounts," said Brad Casey, Chief Underwriter at NewPoint Real Estate Capital. "In addition to qualifying for a pricing discount of up to 30 basis points, resident services, like those supported through the Healthy Housing Rewards program have been shown to reduce renter turnover."
Healthy Design and Enhanced Resident Services offer two pathways to the Healthy Housing Rewards designation. Qualifying for Healthy Design – which comes with a pricing discount of up to 15 bps – involves incorporating health-promoting design features like playgrounds, community gardens and tobacco-free policies. Enhanced Resident Services – which offers a discount up to 30 bps – centers on providing financial, educational, social and health/wellness services to renters.
To learn more about the benefits and process for Healthy Housing Rewards or other Fannie Mae MAH programs, please reach out to a member of NewPoint's Affordable Housing Originations team or view the Healthy Design and Enhanced Resident Services term sheets.