Affordable Housing Drives Multifamily Refi
Centennial Mortgage managing director Renee Greenman tells us that there will continue to be healthy demand for HUD-associated multifamily loans. While interest rates are bound to eventually rise—which will have a downward impact on overall refi demand—the region’s (and the nation’s) affordable housing stock is going to keep growing, and with it, demand for refi. The recapitalization of the entire HUD public housing portfolio, along with the expiration of the initial 15-year compliance period for LIHTC investors over the next few years, means a lot opportunity to utilize HUD’s FHA insurance programs to recapitalize affordable housing portfolios, she says.
Centennial recently tapped Renee for her position, which is in the Indiana-based company’s Seattle office. (Previously she was HUD's Seattle multifamily hub director.) Affordable housing isn't the only sector accessing HUD-associated loans, she tells us. (Don't hog all the HUD.) For example, HUD’s FHA 232 LEAN program, which provides high LTV, non-recourse, long-term financing for healthcare facilities, will likely remain strong as borrowers continue to look at affordable, fixed-rate financing as a strategy to reduce costs for these facilities, she says.
