Multifamily Affordable Housing Loans - MAH

Affordable Housing - MAH and LIHTC

Multifamily Affordable Housing (MAH) loans play a crucial role in addressing the need for accessible and reasonably priced housing options. These loans are specifically designed to support the development, renovation, and maintenance of multifamily properties that cater to low and moderate-income individuals and families.

HUD, Fannie Mae and Freddie Mac often work in conjunction with local agencies to help finance affordable and workforce projects. MAH financing offers favorable terms, lower interest rates, and extended repayment periods compared to conventional loans.  This makes them very attractive for developers and investors committed to affordable housing initiatives.

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Investor Benefits

  • Amortization Up To 35 Years
  • Flexible underwriting to specific affordable developments
  • Increased leverage opportunities when underwritten to as-improved rents
  • Flexible loan terms, and fixed- or variable-rate financing options

Eligibility Requirements

  • Properties eligible for the Rental Assistance Demonstration (RAD) program
  • Properties with HUD Section 8 HAP Contracts
  • Properties with existing Rural Housing Service (RHS) Section 515 loans
  • Loans insured under Sections 202 or 236 of the National Housing Act
Section 8 Housing and LIHTC Programs

Community stakeholders recognize the social and economic benefits of affordable and workforce housing.  MAH loans contribute to neighborhood stability, reduce homelessness, and create a more balanced housing market.

Lenders and financial institutions offering these loans typically collaborate with developers, nonprofit organizations, and local governments. The funds acquired through these loans can be utilized for various purposes, including land acquisition, construction, rehabilitation, and ongoing property management. Additionally, loans for MAH may incorporate subsidies or tax incentives to further alleviate financial burdens and ensure the long-term sustainability of affordable housing projects.

Section 8 Housing

Section 8, formally known as the Housing Choice Voucher Program, is a federal initiative administered by the U.S. Department of Housing and Urban Development (HUD). Section 8 helps low-income families, seniors, and individuals with disabilities access safe and affordable housing in the private market.

Low Income Housing Tax Credits

LIHTC provides tax credits to developers to offset construction and rehabilitation costs of affordable housing projects. In exchange, developers agree to reserve a certain number of units for rent-restricted tenants who meet income eligibility requirements.

Loans for multifamily affordable housing are vital tools in the pursuit of inclusive and sustainable communities.  These programs foster a collaborative approach among governments, lenders, developers, and communities to address the ever-growing demand for affordable housing options.

To learn more call 949-614-1300 or contact one of our advisors.

Multifamily Affordable Housing MAH