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.


Arbor’s Ivan Kaufman Discusses Commercial Real Estate Returning to Normal on CNN

Ivan Kaufman talks commercial real estate and housing market on CNN Business

Arbor’s CEO Forecasts Commercial Real Estate’s Recovery from COVID-19

Ivan Kaufman, the founder, chairman and CEO of Arbor Realty Trust, Inc. (NYSE:ABR), was interviewed on CNN Business “Markets Now.” Sharing his views that commercial real estate will emerge from the COVID-19 crisis, he said, “It’s not all doom and gloom. It’s an adjustment.”

In the article “Commercial Real Estate Flounders as Housing Market Booms,” reporter Paul R. La Monica contrasted the pandemic’s impacts on housing compared to other real estate asset classes.

Kaufman noted that the hospitality and retail sectors have taken a devastating hit. However, he opined that people will return to their offices. The article stated, “Kaufman said that many big tech companies, which have done well during the pandemic, are still committed to having people come to physical offices occasionally instead of doing all work remotely.” With major urban markets being some of the most impacted labor markets by COVID-19, this return to offices will help them ease back into normalcy.

“The complete elimination of offices is not happening. Many companies realize they still need them even though demand may be softer,” Kaufman told CNN.

He also predicted that the reopening of schools will be a factor in the return to normalcy. He pointed out parents can more readily return to their offices, after kids are routinely back in their classrooms.

The article covered more of retail’s challenges, with Brookfield Property Partners laying off 20% of its retail division due to the decline in shopping malls. However, La Monica also reported that essential retail with strong online, takeout and delivery services, along with the industrial sector, are thriving.

Read the complete article here.


For more information on multifamily in today’s economy, check out Arbor’s Chatter blog. Contact Arbor to learn about our multifamily loan products.