Helping You Create and Preserve Affordable Housing

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Now more than ever, communities need affordable housing. At Community Reinvestment Fund, USA (CRF), we help fund safe, accessible housing for families, senior citizens, and those with special needs.

In addition to providing lending partners access to a greater supply of capital, CRF purchases Affordable Housing Multi-Family Loans with fair pricing, flexible terms and flexible underwriting criteria. 

Our diverse set of investors allow us to offer a broad suite of products tailored to the unique aspects of specific markets. 

Risk Sharing Loans: Forwards, Existing and Immediate Funding

If you are a housing finance agency (HFA) that participates in the FHA 542c Risk Sharing program, CRF can provide options to lock in today's low interest rates, even for projects just entering construction.

Forward Commitments 

Lock in today's low interest rates for the permanent loan at the beginning of construction. If you need an advance commitment, CRF's Risk Sharing Forward product provides fixed interest debt capital, from $500,000 - $10 million, for a period up to 30 months. 

Existing Loans 

Avoid the expense of private placements and the volume requirements of bond structures. If you are having difficulty finding an investor due to limited volume, we will purchase one loan or a portfolio of loans using our Risk Sharing Existing Loan product.

Immediate Funding 

Match fund new production with the current market to avoid balance sheet risk. CRF can provide a commitment, with a fixed interest rate, for loans that you are currently underwriting.

Note: CRF will expand its FHA Risk Sharing program to the CDFI Small Property Risk Sharing Program when it is launched by FHA.

LIHTC 4% and 9% Loans - Forwards, Existing and Immediate Funding

If you can identify equity, but have difficulty finding debt capital to support your affordable housing efforts, CRF may be able to help. 

Forward Commitments:

Lock in a permanent loan at today's low interest rates and work with your existing partners for construction financing. Our LIHTC Forward product can provide fixed interest debt capital, from $500,000 - $7 million, for a term of 15 or 18 years, with 30 year amortization.

Existing Loans:

Free up your balance sheet. If you need to sell a loan or a portfolio of loans, CRF offers experienced execution of portfolio transactions with our LIHTC Existing Loan product.

Immediate Funding:

Bring low, fixed interest rate financing to your community. CRF can provide a commitment, with a fixed interest rate, for loans you are currently underwriting and you avoid interest rate risk to your balance sheet.

Natural Affordable

If you are working to preserve or grow your community's affordable housing and public housing properties, CRF may be able to help. With its Natural Affordable Housing product, CRF can provide a fully amortizing, long-term, fixed rate loan with a 30 year term. Whether you need to sell loans on your balance sheet to avoid a client concentration, secure liquidity for future lending or expand your product menu to include a fully amortizing product for Natural Affordable loan, CRF can assist.

Why CRF?

As a mission-driven CDFI, we share a commitment to creating and preserving affordable housing in low-income communities. Many organizations have chosen to work with us because we:

  • Have a diverse group of investors, which allows us to support a broad offering of products
  • Will purchases single loans as well as portfolios
  • Are willing to originate loans below $3 million
  • Provide and FHA 542 Risk Sharing Forward product
  • Have a 25 year history of working with organizations to create and preserve affordable housing

                              CRF Multi-Family Product Parameters

                                                       Refer to Term Sheets for more complete details

PRESERVATION FOCUSFirst Mortgages on LIHTC PropertiesRisk Sharing (542c)Natural Affordable
Loan Size: $500K - $7 million $500K - $10 million $500K - $5 million
Minimum Property Units > 20 units > 20 units > 20 units
Loan Level Credit Enhancement Large amount of equity from tax credits FHA 542 mortgage insurance against 100% loss None
Loan Term/ Amortization 15/30, 18/30 15/15, 30/30, 40/40 15/15, 30/30
Prepayment Requirements 15 year lockout or yield maintenance, thereafter prepayment fee of 1% outstanding principal 15* year lockout or yield maintenance, thereafter prepayment fee of 1% outstanding principal 15* year lockout or yield maintenance, thereafter prepayment fee of 1% outstanding principal
Security Position First lien First lien First lien
Debt Service Coverage 1.15:1 1.15:1 1.25:1
Vacancy Assumptions 7% on LIHTC units and 10% on non-LIHTC units 10% 10%
Replacement Reserves $300/ unit/ year $300/ unit/ year $300/ unit/ year
Stabilization 90% occupancy for 90 days 90% occupancy for 90 days 90% occupancy for 90 days
Debt Service Reserves 3 months debt service funded prior to funding 3 months debt service funded prior to funding 3 months debt service funded prior to funding
Loan to Value <80% <85% <75%
Occupancy/Use Restrictions LIHTC program restrictions FHA Risk Sharing endorsement will adjust CRF underwriting Property should reside in LMI area as defined by CRA of 1977 or have use restrictions supporting > 51% of units are restricted to 80% or less AMI
Commitment Period - Immediate Delivery 120 days 30 days 30 days
Forward Commitment Available Yes Yes No
*A 10 year lockout or yield maintenance is available

Download MFAH Parameters

Contact Colleen Schwarz, Vice President of Affordable Housing, at 720.289.2439 to get started.