Housing Finance Agencies (HFA) Risk Sharing Grants

What is the aim of the Housing Finance Agencies (HFA) Risk Sharing Grants?

Under Section 542(c), HUD provides credit enhancement for mortgages for multifamily housing projects whose loans are underwritten, processed, serviced, and disposed of by Housing Finance Agencies (HFA). HUD and the Housing Finance Agencies share in the risk of the mortgage. The program was originally designed as a pilot program to assess the feasibility of risk-sharing partnerships between HUD and qualified State and local HFAs in providing affordable housing for the Nation. The Section 542(c)program is now permanent multifamily insurance program.

Who is Eligible to Apply for the Housing Finance Agencies (HFA) Risk Sharing Grants?

Eligible mortgagors, who include investors, builders, developers, public entities, and private nonprofit corporations or associations, may apply to a qualified HFA. To be eligible for HUD’s approval, the HFA must: (1) carry the designation of “top tier” or its equivalent as evaluated by Standard and Poor or another nationally recognized rating agency; (2) receive an overall rating of “A” for the HFA for its general obligation bonds from a nationally recognized rating agency; or (3) otherwise demonstrate its capacity as a sound, well-managed agency that is experienced in financing multifamily housing.

How to Apply for the Housing Finance Agencies (HFA) Risk Sharing Grants?

An applicant submits a formal application directly to a HUD-approved HFA.

Where to Apply for the Housing Finance Agencies (HFA) Risk Sharing Grants?

Persons are encouraged to communicate with the nearest local HUD Multifamily Hubs and Program Centers listed at http://www.hud.gov/offices/hsg/mfh/mfbroch/hubs_pcs.cfm or the nearest HUD Field Office listed in the Appendix IV of the Catalog.

For more info on the Housing Finance Agencies (HFA) Risk Sharing Grants, contact:

Headquarters Office
Joyce Allen, 451 Seventh Street SW, Washington, District of Columbia 20410
Phone: (202) 708-1142
Email: joyce.allen@hud.gov
Web Site Address: http://www.hud.gov/offices/hsg/mfh/progdesc/progdesc.cfm

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