fannie mae’s housing development tool investing with public partners to support housing presented...
TRANSCRIPT
Fannie Mae’s Housing Development Tool
Investing with Public Partners to Support Housing
Presented by Maria Day-Marshall
March 2008
2© 2008 Fannie Mae
Fannie Mae is a Leader in the U.S. Housing Finance Industry
• Government Sponsored Enterprise (GSE)
• For-profit company listed on the New York Stock Exchange (FNM)
• Involved in the financing of 1 out of every 5 mortgages Operate in the secondary mortgage market Issue mortgage backed securities (MBS) Purchase loans and MBS to hold in portfolio
3© 2008 Fannie Mae
Fannie Mae’s Commitment to Housing
Fannie Mae provides stability, liquidity, and affordability to the nation's housing finance system
under all economic conditions. We are a shareholder-owned company with a public mission.
We exist to expand affordable housing and bring global capital to local communities in order to serve
the U.S. housing market.
4© 2008 Fannie Mae
Fannie Mae’s Housing and Community Development Division
• Our mission is to invest debt and equity in housing developments to support neighborhoods and community revitalization.
• We achieve our mission by investing with partners in viable housing developments and becoming the secondary market partner of choice for housing finance partners.
Oxon Creek, Washington, DC
Uwajimaya, Seattle, WA
5© 2008 Fannie Mae
What Does Housing and Community Development do?
• Offers front-end financing for single-family and multi-family housing, and mixed-use developments
• Seeks to produce tangible impact in neighborhoods
• Leverages other resources
Wardman Court, Washington, DC
Spicer’s Run, Baltimore, MD
6© 2008 Fannie Mae
Housing and Community Development Gets it Done in the Field
Coaching Staff:DC Team• Product Managers• Credit• Legal• Asset Mgt
Local Experts:Coverage in all 50 states
7© 2008 Fannie Mae
Community Express®
Loan or line of credit to support the residential development agenda of Public Entities including the
development of single-family housing, multifamily housing and mixed-use residential developments.
8© 2008 Fannie Mae
Community Express® Features
• Up to 5-year term loan or line of credit
• Variable rate product
• Full recourse to borrowing entity
• Flexible loan to be used for housing or housing-related activities
• Repayment source is flexible, but a plan must be in place
• Available to states, counties, municipalities, housing finance agencies and public housing authorities
9© 2008 Fannie Mae
Examples of Repayment Sources
• HOPE VI Grant Funds
• Low Income Housing Tax Credit Equity Pay-in
• CDBG, FEMA or Other Grant Funds
• Bond Proceeds
• Cash Flows from Loan Portfolios
• Refinancings of Properties through Conventional Sources
• Sales Proceeds from Sale of Homes Financed with Loan
10© 2008 Fannie Mae
Sample Uses of Loan Funds
• Pre-development Financing
• Construction Financing for HOPE VI Redevelopment Project or Other Affordable Homeownership Units
• Preservation of Affordable Rental Housing Units
• Rehab Loans to Low- and Moderate-income Homeowners in Targeted Neighborhoods
• Re-lending to Other Housing Partners
11© 2008 Fannie Mae
Community Express® City and County of Denver
• $17.5 million line of credit
• Funds used to re-lend to housing partners to finance costs associated with development of workforce housing
• Repayment source is the cash flows from loan portfolios
12© 2008 Fannie Mae
Community Express® St. Johns County, Florida
• $2 million line of credit
• Funds used to construct single-family workforce housing
• Repayment source is sales proceeds
13© 2008 Fannie Mae
Community Express® Housing Authority of the City of Los Angeles
• $10 million revolving line of credit
• Funds used to purchase expiring use affordable multifamily properties in hot market
• Repayment source is the refinancing of the properties through conventional sources
14© 2008 Fannie Mae
Community Express® Cincinnati Metro Housing Authority
• $4 million revolving line of credit
• Funds used to provide construction financing for HOPE VI redevelopment project
• One repayment source is HOPE VI grant funds
• A second repayment source is low income tax credit equity pay-in
15© 2008 Fannie Mae
• $5 Million Line of Credit
• Funds used to construct 127 affordable housing home ownership units
Community Express®
Grand Forks (ND) Housing Authority
• Affordable Housing District -- Sales prices start at $86,900
• Repayment source is sales proceeds
16© 2008 Fannie Mae
Community Express® City of White Plains, NY
• $1 million line of credit
• Funds used to provide rehab loans to low- and moderate-income homeowners in targeted neighborhoods
• Primary repayment source is cash flows from the loan portfolio
• Secondary repayment source is CDBG funds
17© 2008 Fannie Mae
Benefits to Public Entities
• Flexible Use – Can be used for pre-development, acquisition, development, construction or rehabilitation for housing, and re-lending for housing purposes
• Competitive Interest Rates
• Stream-lined and Simplified Process
• Low Upfront Fees
• Low Collateral Requirements
• Allows Public Entities to Leverage Other Private/Public Sources of Funds to Develop Housing Projects
18© 2008 Fannie Mae
Contact us!
For more information contact:
Lisa Zukoff, Director
E-mail: [email protected]
Phone: 304-843-8089
Maria Day-Marshall, Senior Business Manager
E-mail: [email protected]
Phone: 202-752-3916