Fannie Mae announced its new Sponsor-Dedicated Workforce (SDW), a product designed to increase rental housing for workforce-income renters.
SDW incentivizes Fannie Mae multifamily borrowers to impart rent restrictions on eligible properties for the life of the loan. It would include a minimum of 20% of units in a multifamily property. The units would be for residents earning up to 100-120% AMI (area median income).
It utilizes the company’s network of Delegated Underwriting and Servicing (DUS®) lenders.
The rent restrictions will be documented in the loan documents. Compliance will be confirmed annually by DUS lender partners.
This product provides investors with socially responsible investment opportunities while creating a more equitable housing market.
In 2021, Fannie Mae provided $69 billion of liquidity in the multifamily market.
Follow NEXT on LinkedIn for the latest industry news and executive intel.
