NAAHL Applauds Indefinite Extension of Housing Supply Tool “FFB Risk-Sharing”

National Association of Affordable Housing Lenders Applauds Indefinite Extension of Housing Supply Tool “FFB Risk-Sharing”

The program provides long-term, fixed-rate, affordable mortgage capital that will boost housing supply and lower housing costs.

Washington, DC – (February 29, 2024) Today, the Biden-Harris Administration announced the indefinite extension of the Federal Housing Administration (FHA) and Federal Financing Bank (FFB) Risk-Sharing program (FFB Risk-Sharing) as part of a fact sheet on actions to boost housing supply and lower housing costs. The National Association of Affordable Housing Lenders (NAAHL) strongly supports the Administration’s action to indefinitely extend FFB Risk-Sharing program.

“The FFB Risk-Sharing program is a proven lever to boost the construction and preservation of affordable multifamily rental housing, which we have a national shortage of,” said Sarah Brundage, President and CEO of NAAHL. “We commend the Administration for indefinitely extending FFB Risk-Sharing which signals to housing finance agencies the stability of this program and to fully utilize it.”

The FFB Risk-Sharing program is established through an agreement between the Department of the Treasury and the Department of Housing and Urban Development (HUD). The FFB Risk-Sharing program provides long-term, fixed-rate, affordable mortgage capital to Housing Finance Agencies (HFAs). Since its inception, the FFB Risk-Sharing program has closed or committed $4.9 billion for 42,000 apartments. Prior to today’s action, the program was set to expire on September 30, 2024.

“Today’s action solidified an efficient and effective tool to boost housing supply – and we need to protect and strengthen every tool in our toolbox,” said Brundage. “Next, we look forward to continuing to work with the Administration on expanding and strengthening the program – notably expanding the program to qualified community development financial institutions (CDFIs) as lenders.”

On February 16, NAAHL sent a letter with 15 partner organizations to the Administration urging the immediate and indefinite extension of FFB Risk-Sharing and outlining additional steps the Administration could take to improve the program. The letter noted how multiple CDFIs have the skills, experience, capacities, and relationships to be successful risk-sharing lenders.

The White House fact sheet also announced the HUD notice of funding opportunity (NOFO) for the new $225 million Preservation and Reinvestment Initiative for Community Enhancement (PRICE) grants, providing competitive grant funding for the preservation and revitalization of manufactured housing and eligible manufactured housing communities, among other policy updates.

NAAHL looks forward to continuing to work with HFAs, CDFIs, HUD, Treasury, and other partners to optimize the FFB Risk-Sharing program and other policy levers to boost affordable housing supply.

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About National Association of Affordable Housing Lenders

NAAHL is the only national alliance of banks, CDFIs, and other capital providers dedicated to expanding economic opportunity by financing affordable housing and neighborhood revitalization. NAAHL has worked to advance responsible community reinvestment, fight predatory lending, and strengthen public-private partnerships.

For more information, visit www.naahl.org.

About National Association of Affordable Housing Lenders

NAAHL is the only national alliance of banks, CDFIs, and other capital providers dedicated to expanding economic opportunity by financing affordable housing and neighborhood revitalization. NAAHL has worked to advance responsible community reinvestment, fight predatory lending, and strengthen public-private partnerships.

For more information, visit www.naahl.org.