Understanding the Impact of Wildfires on Rental Property Insurance

From California to Maui, the frequency and scope of wildfire events are rising, causing insurance markets and public agencies to reevaluate property in areas at risk for catastrophic damage. As a result, rental housing providers are seeing greater limitations to coverage, higher premium prices, and, in some cases, a total absence of viable private insurance — a trend detailed in the NMHC 2023 State of Multifamily Risk Survey and Report. This troubling new trend has placed many rental housing operators in a bind where they must simultaneously contend with the declining availability and affordability of insurance options.


Five Advantages of FHA Multifamily Construction Loans

In the last three years, multifamily construction has reached levels not seen since the 1980s, supported, in part, by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) loans. If you are exploring the acquisition, refinancing, rehabilitation, or new construction of conventional multifamily, affordable housing, seniors housing, or a healthcare facility, consider FHA multifamily construction loans, a stable financing option with excellent terms and many other attractive advantages.


Where are Single-Family Rental (SFR) Rents Rising the Fastest?

While the single-family rental (SFR) sector’s rent growth averages have retreated from record highs, structural tailwinds are keeping price growth positive — both nationally and in major SFR markets. In this research brief, Chandan Economics and Arbor Realty Trust analyze DBRS Morningstar data, which covers the top 20 MSAs by SFR activity, to discover the metropolitan areas where SFR rent growth is the hottest right now.


Fannie Mae Small Loans Cap Raised to $9 Million

Fannie Mae recently announced that its Small Loan cap has increased from $6 million to $9 million for all loans committed as of August 22, 2023. Multifamily borrowers and lenders have praised the change to the Fannie Mae Small Loans program, which will encourage greater investment in a rapidly growing sector where demand remains high despite market volatility.


The Top Five Emerging Metros for Retiree Relocation

As Baby Boomers reach retirement age, their evolving geographic preferences are strengthening housing markets and local economies in new locations, which feature attractive climates, relative affordability, and ample outdoor activities. With swelling populations of senior citizens, our top five emerging metropolitan areas for retiree relocation are fertile ground for multifamily real estate investment.

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Manufactured Housing Community Loans

Arbor’s Fannie Mae DUS Manufactured Housing Community (MHC) loans provide competitive pricing and flexible terms and function as a major source of liquidity for affordable housing community owners.

Minumum Loan Amount $750,000
Loan Term 5 to 30 years
Amortization Up to 30 years
Minimum DSCR 1.25x
Maximum LTV 80%
Interest Rate Fixed- and variable-rate options available
Eligible Properties
  • Existing, stabilized, professionally managed MHC, with or without age restriction, having a minimum of 50 pad sites
  • Quality Level 3, 4, or 5 communities
Eligible Borrower Single Asset Entity; At least one Key Principal of the Borrower should have experience in operating MHC
Property Considerations
  • MHC may be either age-restricted or all age (family community)
  • The percentage of tenant-occupied homes generally may not exceed 35%
  • Density is based on market norms and generally should not exceed 12 manufactured homes per acre for an existing community and seven manufactured homes per acre for a new community
  • With limited exceptions, all manufactured homes should conform to applicable Manufactured Housing HUD Code standards
  • Leases with two-year terms or longer cannot contain a tenant option to purchase the pad site
  • Additional pricing incentives available for non-traditional MHC ownership forms (e.g., non-profit, government entity, or resident-owned)
  • Additional pricing incentives available for Borrowers implementing Tenant Site Lease Protections
Escrows Funding of tax and insurance escrows depends on leverage level; Replacement reserve escrow is typically not required
  • Nonrecourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy
  • For loans with the pricing incentive for having minimum Tenant Site Lease protections, a Limited Payment Guaranty for 10% of the Mortgage Loan amount is required
Third-Party Reports Standard third-party reports required, including Appraisal, Property Condition Assessment and Phase I Environmental Site Assessment
Third-Party Reports Cost Reimbursment Fannie Mae will reimburse the cost of third-party reports up to $10,000 for Communities with Tenant Site Lease Protections implemented for at least 50% of the Sites, or if the community is owned by a non-profit entity. Minimum site lease protections must include:

  • One-year renewable lease term for the site unless good cause for nonrenewal
  • 30-day written notice of site rent increases
  • Five-day grace period for site rent payments and right to cure defaults on site rent
  • Rights of tenants to:
    • Sell the manufactured home without having to first relocate it out of the community
    • Sublease the home or assign the site lease to a new buyer, so long as the new buyer meets the minimum MHC rules and regulations and the borrower’s credit standards for new tenants, consistent with the market
    • Post “for sale” signs that comply with the MHC rules and regulations
    • Sell the home in place within 45 days after eviction and receive at least 60 days’ advance notice of any planned sale or closure of the community
Prepayment Availability
  • Flexible prepayment options are available
  • Mortgage loans may be voluntarily prepaid upon payment of yield maintenance for fixed-rate loans or graduated prepayment for variable-rate loans
Assumption Mortgage loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience
Supplemental Financing Supplemental Mortgage Loans are available
Rate Lock 30- to 180-day commitments; Borrowers may use the Streamlined Rate Lock option
Accrual 30/360 and Actual/360
Minimum Underwritten Vacancy/Collection Loss Minimum 5% economic vacancy assumption


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