Fannie Mae is the biggest player in the nation's secondary mortgage market. The CHFA is a state organization established to encourage the development, purchase and retention of affordable housing in the Golden State.
As part of the complex plan, Fannie Mae sold about $274 million worth of federally backed Section 236 mortgages to CHFA. By purchasing the loans, CHFA now has the opportunity to preserve the underlying apartment buildings for affordable rental housing.
The deal is aimed at stemming the growing number of apartment owners who are opting out of the federal subsidy program so they can raise rents to market levels. About 43,000 affordable apartment units in California alone could conceivably be removed from the federal rolls, Fannie Mae says.
The new agreement "gives us the opportunity to save over 23,300 units that were at risk of converting to market rental rates," says Ted Chandler, vice president of housing and community development in Fannie Mae's regional office in Pasadena. "As a result of this transaction, CHFA is now in a position to negotiate a refinancing of these at-risk properties with their owners and preserve the properties' long-term affordability."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
