FANNIE MAE SPONSOR-INITIATED AFFORDABILITY (SIA)
In 2021, Fannie Mae introduced a new program, Sponsor-Initiated Affordability (SIA), to aid in solving the growing affordable housing crisis in the United States. SIA aims to preserve naturally occurring affordable housing (NOAH) and workforce housing by offering incentives including increased flexibility in loan terms and competitive pricing, to multifamily property owners willing to enter into a voluntary agreement to restrict rent and incomes for the life of the loan. This restriction is solely tied to the loan and goes away at loan maturity or payoff.
Why Berkadia?
As a trusted partner and market leader in the space, Berkadia proudly closed Fannie Mae’s first SIA loan and first SIA credit facility.
In 2022, Berkadia was ranked #1 in closed SIA transaction volume.
In 2022, Berkadia was Fannie Mae’s #2 DUS lender and ranked #2 in combined Freddie Mac, Fannie Mae and FHA origination volume.
SIA Eligibility
• Existing, stabilized conventional properties
• Minimum of 20% of units are affordable at 80% of AMI or less, as adjusted for family size and can be up to 120% AMI in High Cost Markets
• Rent for those SIA units does not exceed 30% of adjusted AMI for unit size
• Rent and income restrictions will be included in the Fannie Mae Loan Agreement
• Rent and income restrictions must be in place by the mortgage loan origination date
• The property must be compliant with the Sponsor-Initiated Affordability Agreement within 12 months of the mortgage loan origination date
Program Features
• Competitive pricing
• Flexible loan terms
• Rent and income restrictions ensure positive impact for households living at or below 80% of AMI or up to 120% AMI in High Cost Markets
• Up to 80% LTV
• Certainty of execution
• Speed in underwriting and execution
For more information:
Please reach out to your Berkadia mortgage banking professional or visit berkadia.com.
