SS Multifamily Memo 18-03mf

Date: April 27, 2018

MULTI-FAMILY LOAN PURCHASE PROGRAM:
CONTACT ERIC HAVELOCK (907-330-8245)

Interest Rates
(Section 1002.02.M)

As of the date of this memo, all file submissions are subject to the interest rate buydown fee schedule below. An interest rate buydown is not allowed with a balloon feature loan.

Interest Rate Buydown Amount

Buydown Fees

15 Year

30 Year

0.125%

0.875%

1.000%

0.250%

1.750%

2.000%

0.375%

2.625%

3.000%

0.500%

3.500%

4.000%

0.625%

4.500%

5.000%

0.750%

5.500%

6.000%

0.875%

6.500%

7.000%

1.000%

7.500%

8.000%

Vacancy/Credit Loss
(Section 1002.02.X)

Effective with the date of this memo, the vacancy and credit loss used in underwriting, in most instances, may not be less than 6% and must be adjusted upward if property and/or market conditions require.

Property Income and Expense Statements and Pro-Forma Financial Statements
(Section 3000.04)

Lenders are reminded that when expressing an opinion as to whether the income, expense and net income projections are reasonable, an estimated cost of property management expense shall be included on the pro-forma financial statement and factored into the analysis. AHFC may, at its discretion, stabilize this expense for internal underwriting at a level that reflects actual costs in the marketplace.

Effective with the date of this memo, AHFC will evaluate all multi-family loan commitment requests by stabilizing the anticipated property management expense at 9% of projected gross rents for the purpose of determining that the debt service coverage ratio meets or exceeds the 1.250 requirement as described in Section 1002.F of this Guide.

Reserves for Replacements
(Section 4000.03)

Alaska's multi-family housing opportunities are not growing at a rate that meets market demand, resulting in an aging housing stock. Older housing opportunities have an increased need for maintenance and upgrade to continue providing safe, quality housing for Alaskans.

Servicers are reminded that replacement reserve funds are for the ongoing improvement to the property in order to maintain the marketability of the unit. Appraisers have varied their identification of the deposit amount from a line item approach to a percentage of cash flow approach. In order to ensure adequate funds are available for the intended purpose, AHFC is establishing minimum deposit amounts effective with the date of this memo:

  • $300 per unit, per year for new construction, and
  • $350 per unit, per year for existing construction; or
  • A larger number as determined by the Lender and AHFC.

AHFC has expanded the Selling Guide to identify appropriate replacement reserve items.

GUIDE REVISIONS: CONTACT MULTI-FAMILY

Only available in PDF - Adobe Acrobat or Adobe Reader is required to read/print PDF files.)

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