Fact Sheet: Growing Number of States Boosting Affordable Housing Supply through HUD Risk-Sharing

Fact Sheet: Growing Number of States Boosting Affordable Housing Supply through HUD Risk-Sharing

A growing number of states and local housing finance agencies are utilizing the Federal Financing Bank (FFB) Risk-Sharing Initiative, an existing commonsense tool requiring no Congressional appropriations, to access the capital needed to build and preserve affordable housing supply. Today, 38 housing agencies from 34 states are approved to use the Risk Share program.

The following Fact Sheet is the first in a forthcoming series of NAAHL resources aimed at making plain the housing supply levers and solutions — existing and new — as we confront the rising cost of housing across America.

This first fact sheet was prepared in collaboration with the National Council of State Housing Agencies. Together, our two organizations represent the FFB Risk-Sharing Working Group, a coalition of national, state, and local nonprofit and public sector partners committed to expanding the affordable housing supply through the FFB Risk Sharing Program.

Unlocking Supply, Lowering Costs: The Federal Financing Bank (FFB) Risk-Sharing Initiative

The FFB Risk-Sharing Initiative, a joint effort by HUD and the Treasury Department, helps states and local housing agencies finance affordable housing more quickly and affordably. By allowing housing finance agencies to originate FHA-backed multifamily loans with shared risk, the program lowers borrowing costs, supports smaller and rural projects, and expands access to capital—all at no cost to taxpayers. The Risk-Share program is a negative-subsidy resource, and FFB provides unsubsidized at-cost capital to housing agencies.

Program Highlights

• Advances supply-focused housing solutions: Helps states finance new affordable housing without relying solely on tax-exempt bonds or competitive LIHTC awards.
• Delivers lower-cost financing: FFB purchases reduce capital costs and stretch public dollars further.
• Serving rural areas: Offers small and rural HFAs a reliable financing alternative comparable to Ginnie Mae pricing.
• Actively supporting housing supply: The Risk-Sharing Initiative is actively supporting deals in the current pipeline and providing confidence to lenders and developers.

Risk-Sharing Impact

• $19.9 billion+ invested through Risk-Sharing since 2001
• 219,000+ affordable rental homes financed or refinanced through Risk-Sharing
• 95 loans in FY 2024 alone, supporting over 9,265 units

Additive FFB Risk-Sharing Impact

• $6.2 billion in FFB Risk-Sharing loans committed since program inception
• 52,000 affordable rental homes financed using FFB Risk-Sharing.

About National Association of Affordable Housing Lenders

Founded in 1990, the National Association of Affordable Housing Lenders (NAAHL) is the national alliance of banks, CDFIs, and other lenders and investors in affordable housing and community development.

For more information, visit www.naahl.org.

About the FFB Risk-Sharing Working Group

We are an ad hoc coalition led by the National Association of Affordable Housing Lenders (NAAHL) and the National Council of State Housing Agencies (NCSHA). Our coalition of national, state, and local nonprofit and public sector partners are committed to expanding the affordable housing supply through the FFB Risk Sharing Program.