“TAH Express has the potential to have a
substantial social impact by giving investors
the tools they need to maintain and preserve
… affordable-housing stock nationwide.”
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Commercial Real Estate
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Freddie Mac created TAH Express to
serve the multifamily market. Uncapped,
stabilized multifamily properties with one
or more of the following affordable characteristics are eligible for TAH Express:
■ Low-income housing tax credit, or
LIHTC, properties in at least year 11
of their compliance period.
■ Buildings with long-term Housing
Assistance Payments, or HAP, contracts.
■ Buildings with regulatory agreements that impose rent or income
■ Buildings with tax abatements.
■ Buildings with Section 8 vouchers.
Properties located in “small” or “very
small” markets, per Freddie Mac’s market-
tiering list, may be subject to additional
restrictions. Ineligible properties include
senior housing with resident services,
student housing, military housing,
LIHTC properties with land-use restrictive
agreements in compliance years one
through 11, Historic Tax Credit properties
with a master-lease structure, tax-exempt
financing and rehabilitation financing.
The TAH Express program is likely to
have a resounding, positive impact on
eligible borrowers seeking loans to
acquire affordable-housing properties,
with long-term effects on maintaining
the existing supply of affordable housing expected down the line. Investors
will have greater ability to acquire and
preserve affordable housing, both in
large markets and underserved areas,
because of the reduced transaction
costs and greater access to capital.
As a result of the flexibility offered
within the TAH Express program, investors also will be better able to tailor the
loan-term and prepayment structure
to better fit their business plans. In
particular, smaller investors seeking to
grow their portfolios stand to benefit.
That is because the TAH Express
program offers superior pricing and
longer-dated loan terms than what
might be available from local banks
and credit unions. The Freddie Mac loan
program helps to level the playing field
between the larger and smaller players
in the market by allowing more borrowers to have easier access to funding.
n n n
TAH Express has the potential to have a
substantial social impact by giving investors the tools they need to maintain
and preserve the existing supply of
high-quality, affordable-housing stock
nationwide. TAH Express addresses
some of the challenges affecting borrowers seeking loans by streamlining the
process and making it less expensive.
In turn, this reduced processing time
will allow for much-needed housing to
be built more quickly. For mortgage
brokers, being well-versed in this program
will provide a significant value-add
opportunity, not just for borrower clients,
but for those who need affordable
housing the most. n