Government Shutdown: What Multifamily Borrowers Need to Know

Unless an 11th-hour agreement is reached, a Congressional impasse will trigger the first partial U.S. government shutdown in four years. Starting October 1, 2023, many non-essential federal government operations will be limited or suspended. Agency lending, however, will not be interrupted, and there is no cause for concern. Borrowers should anticipate some inconveniences, such as processing and closing delays.


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.


Yahoo! Finance: Ivan Kaufman on Arbor’s Rental Assistance Program

Yahoo! Finance: Ivan Kaufman on Arbor’s Rental Assistance Program

Arbor Realty Trust Inc. (NYSE:ABR) developed a unique rental assistance program to help tenants hit with financial difficulties resulting from COVID-19. The company’s Chairman and CEO Ivan Kaufman spoke with Yahoo! Finance’s Alexis Christaforous and Brian Sozzi and explained how Arbor’s program will financially assist tenants across the country, while helping to maintain financial liquidity and stability in the housing market.

With the $2 million Arbor Rental Assistance Program (ARAP), Arbor is providing $1 million, matched with borrowers’ funds to provide interest-free advances to tenants to pay their rent at Arbor-financed properties. Tenants have up to three years to pay back the funds.

“What we did was reach out to our ecosystem of borrowers and ask how can we leverage our capital? How could we leverage your capital? How could we get to those who need the money?” Kaufman explained. “What we’re also seeing is tenants really do want to pay their rent. Tenants do want to be current. But they need help. We’re here to help them and in a way that when they can make financial ends meet, it won’t be painful.”

He noted that 99% of Arbor’s borrowers were making their payments. However, private capital is needed to fill gaps, supplementing governmental programs. As one of the country’s leading multifamily lenders, known for its strong relationships with its network of borrowers, Arbor has the infrastructure to connect with renters and their families who have suffered hardships as a result of the coronavirus.

Kaufman also created the program to help keep the market liquid, and to prevent mortgage foreclosures and a devaluation of real estate that would destabilize the economy. “My goal is not just simply looking at Arbor and our borrowers but looking at the universe in total. If we can get 1,000 borrowers and 1,000 other lenders to do what we’re doing, we’re talking about billions and billions of dollars to reach those who are in need,” he said. “And that’s the message. How do we get to those who have been most impacted?”

Lenders and borrowers have access to tenants who are hard-pressed by the unprecedented effects of COVID-19. He reasoned that private industry could assist the government in effectively averting another economic crisis.

To watch the full interview, click here.

Learn more about ARAP and Arbor’s loan programs. Contact Arbor today to speak with an originator about our multifamily financing options.