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.

FFB + Traditional Risk-Sharing

  • California HFA

  • Colorado HFA

  • Connecticut HFA

  • DC HFA

  • Idaho HFA

  • Illinois HDA

  • Kentucky Housing Corp

  • Massachussetts HFA

  • Mass. Housing Partnership

  • Michigan HDA

  • Minnesota HFA

  • Montgomery Co. HOC

  • New Hampshire HFA

  • New Mexico MFA

  • New York City HDC

  • New York State HFA

  • Ohio HFA

  • Pennsylvania HFA

  • Rhode Island HMFC

  • Utah Housing Corp

  • Vermont HFA

  • Virginia HAD

  • Wisconsin HFDA

Traditional Risk-Sharing

  • Alaska HFC

  • Delaware State HA

  • Fairfax County RHA

  • Florida HFC

  • Iowa HFC

  • Louisiana HFA

  • Maine HFA

  • Maryland DHCD

  • Missouri HDC

  • Montana BOH

  • New Jersey HMFA

  • Oregon HCSD

  • Philadelphia RA

  • South Dakota HDA

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.

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.

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The Neighborhood Homes Coalition, Co-Chaired by NAAHL, Applauds the Reintroduction of the Bipartisan Neighborhood Homes Investment Act

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NAAHL Statement on the Importance of a Stable CRA to Drive Investments in Affordable Housing and Local Economies