Articles

Eight Common Commercial Real Estate Investor Questions

Whether you are just beginning your investing journey or are looking to take your portfolio to the next level, Arbor stands ready with our talented team and decades of expertise. Given our vast experience and national footprint of successful deals, we are familiar with many common commercial real estate investor questions, such as the ones answered in this article.

Articles

Multifamily is Well-Positioned for Short- and Long-Term Growth

With the macroeconomy maintaining its underlying strength and a handful of rate cuts expected by the Fed within the next 18 months, green shoots of optimism within the multifamily sector are multiplying. Even as high interest rates impede normal operations, stabilization is underway while the sector’s long-term prospects remain unwavering. In this deep dive, our research teams will explore the tailwinds underpinning the multifamily sector’s short- and long-term outlook.

Refinance of Existing HUD-Insured Loan

FHA® Interest Rate Reduction (IRR) Refinance of Existing HUD-Insured Loan   Arbor provides this program to reduce the interest rate on qualified existing HUD-insured multifamily loans. The HUD-insured loan remains in place, with reduced payments based on the new rate, the current balance, and the remaining term. The existing prepayment penalty must be paid in full. V041624

Mortgage Insurance for Rental Housing for Urban Renewal and Targeted Redevelopment

FHA®220 Mortgage Insurance for Rental Housing for Urban Renewal and Targeted Redevelopment*   Arbor provides FHA-insured, long-term, fixed rate financing for new construction and substantial rehabilitation of multifamily projects nationwide. This program provides for both construction and permanent financing for projects in urban renewal areas and other areas where local governments have undertaken designated revitalization activities. Applications are typically processed in two stages (preliminary application followed by firm application). Affordable/rental assisted projects and HUDexperienced development teams may request a “straight to firm” application, saving significant time by eliminating the preliminary application stage. V020224

Articles

Regional Construction Trends: Annual Multifamily Completions Surged in the South and West

After the volume of newly issued multifamily permits hit a 37-year high in 2022, multifamily completions surged another 22.3% last year. As the sector continues to gain strength, its growth has remained concentrated in the southern and western regions of the country, according to an analysis of new data from the U.S. Census Bureau’s Survey of Construction.

Articles

The Evolving Characteristics of Multifamily Construction

During the post-global financial crisis (GFC) cycle, a disproportionate share of new multifamily construction was of high-rise units in properties with amenities. However, the tides have turned. The rising cost of homeownership has brought the need for more affordable housing development in the U.S. to the top of many legislative agendas. In this deep dive, our research teams utilize data from the U.S. Census Bureau’s Annual Survey of Construction to show how and why the characteristics of new multifamily properties continue to evolve alongside shifting market needs.

Articles

Video: Growing LGBTQIA+ Visibility in the CRE Industry

LGBTQIA+ Pride Month is recognized in June, but its lessons are timeless. During a recent conversation between Tres Seippel, Director, Construction Management at Arbor, and Dr. Sam Chandan, Founder of Chandan Economics, Founding Director, NYU Chen Institute for Global Real Estate Finance, and Co-Chair of the Real Estate Pride Council, Seippel shared why it is more important than ever for the industry to embrace visibility and show support for employees who identify as LGBTQIA+ or other diverse backgrounds.

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Home | Freddie Mac | Manufactured Housing Resident Owned Community Loan (MHROC)
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FREDDIE MAC

Manufactured Housing Resident Owned Community Loan (MHROC)

  • Designed specifically for MHROCs (also known as MH Cooperatives)
  • Expands affordable housing options for underserved populations, particularly in rural and non-metro areas where MHROCs are prevalent

Eligible Property Types Existing, stabilized, high-quality, professionally managed MHROCs, with or without age restrictions
Eligible Transaction Types
  • Acquisition/Conversion: An Acquisition Mortgage on a Manufactured Housing
    Community which is in the process of converting from a rental property to an
    MHROC. The MHROC Borrower must be formed prior to rate lock.
  • Seasoned Refinance: A Refinance Mortgage on an existing MHROC with most shares already sold to resident shareholders
Eligible Borrowers Not-for-profit cooperative corporation or association (“Co-op”) in which shares in
the Co-op are sold to shareholders and such shares entitle the shareholder to
occupy a specific pad
Requirements for Resident Shareholders At rate lock:

  • 100% of pads must be owned by the MHROC Borrower.
  • At least 90% of shares must be owned by resident-shareholders.

Seasoned Refinances offer flexibility on this point with alternate sizing.

Debt Service Reserve May be required
Terms 5- to 30-year terms
Minimum UPB Amount $500,000
Maximum Amortization 30 years
Interest Rate Fixed-rate only, floating rate not permitted (Refer to the Fixed-Rate Loan term sheet for additional information.)
Interest Only Amortizing only – Interest only not permitted
Prepayment Provisions Refer to the Fixed-Rate Loan term sheet for additional information.
Recourse Requirements Non-recourse, guarantor not required
Supplemental Financing Available, subject to the Supplemental Loan offering and Loan Agreement requirements
Home Rentals The percentage of homes owned by the borrower, borrower-affiliate, or third-party investor cannot exceed 5% in aggregate.
Tax and Insurance Escrows Required
Replacement Reserve Escrows Minimum $50/site/year and $250/borrower-owned manufactured home/year (if included in the collateral)
Application Fee Greater of $2,000 or 0.1% of loan amount
Early Rate and Spread Lock Options Standard Delivery
Refinance Test Refinance Test is necessary on all MHROC loans
Additional Considerations
  • Private facilities (e.g., wells and septic systems) are allowed with considerations.
  • Rental leases cannot contain option to purchase pad sites or borrower-owned manufactured homes.
  • Retail sales or financing by borrowing entity of any manufactured homes or shares in the MHROC Borrower is not allowed.
  • RV campgrounds and broken condominiums are excluded.
  • Wrap financing, seller financing, mezzanine financing, and preferred equity are not permitted.
  • Freddie Mac will not purchase end loans or loans to individual shareholders.

V051722

ARBOR.COM | 800.ARBOR.10
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