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© 2017 Fannie Mae. Trademarks of Fannie Mae. 2.15.2017 1 of 13

C&D Affordable Housing Data Guidance For All Multifamily Properties with Income or Rent Restrictions (not just units in properties meeting Fannie Mae’s Multifamily Affordable Housing (MAH) definition

Table of Contents

Page Affordability Restrictions Type

2-3 GUIDANCE 4 LIHTC ONLY, WITH AT LEAST 8 YEARS OF THE ORIGINAL 15-YEAR IRS COMPLIANCE PERIOD REMAINING (AKA “NEW” LIHTC) 5 LIHTC ONLY, WITH LESS THAN 8 YEARS REMAINING IN THE ORIGINAL 15-YEAR IRS COMPLIANCE PERIOD 6 LIHTC – TAX CREDITS HAVE BEEN TAKEN, ORIGINAL15-YEAR IRS COMPLIANCE PERIOD IS OVER, HOWEVER THE EXTENDED USE

RESTRICTIONS REMAIN 7 PROJECT BASED HAP/ INCLUDING SECTION 8 8 “NEW” LIHTC AND PROJECT BASED HAP/SECTION 8 9 “NEW” LIHTC AND ADDITIONAL TYPES OF RESTRICTIONS 10 LIHTC WITH LESS THAN 8 YEARS REMAINING IN ORIGINAL 15-YEAR IRS COMPLIANCE PERIOD AND PROJECT BASED HAP/SECTION 8 11 PROJECT BASED HAP/SECTION 8 AND ADDITIONAL TYPES OF RESTRICTIONS 12 NOT LIHTC OR PROJECT BASED HAP/SECTION 8 BUT THERE ARE OTHER RESTRICTIONS THAT FALL WITHIN THE MAH DEFINITION 13 NOT MAH BUT SOME RESTRICTIONS (DOES NOT MEET THE MAH DEFINITION)


Guidance A. Fannie Mae Multifamily Affordable Housing (MAH) definition:

MAH Properties are encumbered by a third party regulatory agreement or recorded restriction (an “Affordable Regulatory Agreement”) that limit rents, impose maximum income restrictions on tenants, or places other affordability restrictions on the use or occupancy of the MAH Property that meet or exceed one of the following requirements.

o "20% @ 50%": at least 20% of all units have rent or income restrictions in place such that the rents charged for those units are affordable to households earning no more than 50% of Area Median Income (“AMI”) as adjusted for family size; or

o "40% @ 60%": at least 40% of all units have rent or income restrictions in place such that the rents charged for those units are affordable to households earning no more than 60% of AMI as adjusted for family size; or

o Section 8 Housing Assistance Payment (HAP) Contract: at least 20% of all units are subject to a project-based HAP Contract; or

o Special Public Purpose: the Property (i) has other rent and/or income restrictions, and (ii) meets a noteworthy special public purpose. A guide waiver must be approved for Lenders to treat these properties as MAH. These properties should deliver the “Affordable Housing Type” as “Other”.

NOTE: DUS Gateway™ Pre-Review and/or Waiver Edits Screen the waiver will be entered as follows:

Category = Guide (Other)

Sub-Category = Property

B. When to select the Multifamily Housing Preservation box under “Other Attributes” on the Commitment Page of C&D:

o Use the following guidance for “Multifamily Affordable Preservation” in the Guide (Part IIIB, Chapter 7, Section 707.01) to decide

whether to designate a transaction as “Multifamily Housing Preservation”: Generally, any transaction involving a Property with low-income qualifying restrictions on 20% or more of its units that is being refinanced (not including a Mortgage that pays off the initial construction loan) qualifies as an “Affordable Preservation Transaction”.

o As noted in the Other Attributes section of the C&D Commitment page, a transaction may have multiple Other Attributes. Thus, it is permissible to select, for example, both “Multifamily Housing Preservation” and “MAH.”


C. LIHTC Compliance Periods - Please note that nearly all LIHTC transactions have two compliance periods:

o The Internal Revenue Service (IRS) compliance period is defined as: during which period a failure to comply with the affordability restrictions results in the loss of some of the tax credit benefits. ALL LIHTC transactions have a 15-year IRS compliance period. It is this IRS compliance period that is used to differentiate “new” LIHTC transactions from other LIHTC transactions in this guidance.

o In addition to the IRS compliance period, each state tax credit allocating authority mandates a period during which the affordability restrictions

must remain in place. This state agency-required compliance period is longer than the IRS compliance period. The state agency-required compliance period is NOT used in the Fannie Mae affordability data requirements.

D. General delivery instructions for C&D and the Underwriter’s Data Form 4662:

o The total percent of all restricted units cannot exceed 100.0%, and the combination of AMI restrictions cannot exceed 100.0%.

o Section 8 Units: Section 8 vouchers are NOT to be included in any of the Affordable Data fields; only Section 8 units subject to a project-based HAP contract should be reported as restricted units.

o Not MAH: Only properties with income and/or rent restrictions that do not meet the Fannie Mae MAH definition (page 2 A) should deliver the

“Affordable Housing Type” as “Not MAH”. Please follow the guidelines on page 13, otherwise select a valid value including blank/null (for properties with no restrictions).


Multifamily Affordable Housing (MAH) Type

Underwriter’s Data Form 4662 AFFORDABLE HOUSING TYPE

C&D Commitment: MAH TYPE

C&D Property Collateral: AFFORDABLE HOUSING TYPE

C&D Property Collateral: HOUSING GOALS DATA AND AFFORDABILITY RESTRICTIONS

LIHTC ONLY, WITH AT LEAST 8 YEARS OF THE ORIGINAL15 YEAR IRS COMPLIANCE PERIOD REMAINING (AKA “NEW” LIHTC)

LIHTC Enter the percent of restricted Units At or Below 60% AMI and At or Below 50% AMI Note: Total not to exceed 100%

LIHTC

LIHTC a. “Original Tax Credit ($)”—required b. “Remaining Credit Period for Tax Credits (months)”—

required c. “Units with Income or Rent Restrictions (%)”--required

Total percent of units with income or rent restrictions

d. “Percentage of Units Set Aside for Tenants with

Household Income At or Below 80%, 60% and 50% of the Median Income"—required. Mark as applicable.

e. “Tax Credit Percent”—required

Only acceptable choices are “9%” or “4%” f. “Tax Exemption or Abatement”—required

Choices: “yes” or “no” g. “Remaining Term of Tax Exemption/Abatement

(months)”— required if answer to “Tax Exemption or Abatement?” was “yes”

h. “Section 8 Occupancy”—leave blank

i. “HAP Remaining Term (months)” —leave blank







LIHTC ONLY, WITH LESS THAN 8 YEARS REMAINING IN THE ORIGINAL 15 YEAR IRS

COMPLIANCE PERIOD

Other Enter the percent of restricted Units At or Below 60% AMI and At or Below 50% AMI Note: Total not to exceed 100%

Other

Other

a. “Original Tax Credit ($)”—leave blank

b. “Remaining Credit Period for Tax Credits (months)”—leave blank

c. “Units with Income or Rent Restrictions (%)”--required





Only acceptable choice is “None”

f. “Tax Exemption or Abatement”—required

Choices: “yes” or “no”

g. “Remaining Term of Tax Exemption/Abatement (months)”—required if answer to “Tax Exemption or Abatement?” was “yes”

h. “Section 8 Occupancy” –leave blank

i. “HAP Remaining Term (months)” —leave blank







LIHTC – TAX CREDITS HAVE BEEN TAKEN, ORIGINAL15 YEAR IRS

COMPLIANCE PERIOD IS OVER, HOWEVER THE EXTENDED USE RESTRICTIONS REMAIN

Other Enter the percent of restricted Units At or Below 60% AMI and At or Below 50% AMI Note: Total not to exceed 100%

Other

Other a. “Original Tax Credit ($)”—leave blank b. “Remaining Credit Period for Tax Credits (months)”—leave

blank c. “Units with Income or Rent Restrictions (%)”—required




e. “Tax Credit Percent”— required




g. “Remaining Term of Tax Exemption/Abatement

(months)”—required if answer to “Tax Exemption or Abatement?” was “yes”

h. “Section 8 Occupancy” –leave blank i. “HAP Remaining Term (months)” —leave blank







PROJECT BASED HAP/ INCLUDING SECTION 8 SELECT THIS OPTION IF THE PERCENT OF RESTRICTED PROJECT BASED HAP/SECTION 8 UNITS MEETS THE MINIMUM 20% PER MAH DEFINITION (PG 2 – A)

Project Based HAP/Section 8 Enter the percent of restricted Units At or Below 80% AMI (Low to Moderate Income) and At or Below 50% AMI (Very Low Income) Note: Total not to exceed 100%

Proj Based HAP (incl. Sec. 8)


a. “Original Tax Credit ($)”—leave blank b. “Remaining Credit Period for Tax Credits (months)”— leave blank c. “Units with Income or Rent Restrictions (%)”--required


d. “Percentage of Units Set Aside for Tenants with Household Income At or Below 80%, 60% and 50% of the Median Income"—required.

Enter percent of units restricted to Low to Moderate Income in “At or Below 80% of Median Income”

Enter percent of units restricted to Very Low Income in “At or Below 50% of Median Income”


Only acceptable choice is “None” f. “Tax Exemption or Abatement”—required



h. “Section 8 Occupancy”—percentage required

Calculate the number of Section 8 units in the HAP contract divided by the total number of units at the property (do not exclude any “down” units); tenant –based Section 8 vouchers are not counted

i. “HAP Remaining Term (months)”—required

This field is applicable to Project Based HAP







“NEW” LIHTC AND PROJECT BASED HAP / SECTION 8

Both LIHTC & Project Based HAP/Sec. 8 Enter the more restrictive percent (lowest maximum AMI) of the LIHTC or HAP /Section 8 restrictions. Example: If 100% of the HAP/Section 8 units are Low to Moderate Income (At or Below 80% AMI) but the LIHTC restrictions cover 100% of the units At or Below 60% AMI, then enter the LIHTC restrictions Note: Total not to exceed 100%

Both LIHTC & Proj Based HAP

Both LIHTC & Proj Based HAP

a. “Original Tax Credit ($)”—required b. “Remaining Credit Period for Tax Credits (months)”— required c. “Units with Income or Rent Restrictions (%)”--required


d. “Percentage of Units Set Aside for Tenants with Household Income At or Below 80%, 60% and 50% of the Median Income"—required. Mark as applicable.


Only acceptable choices are “9%” or “4%”



g. “Remaining Term of Tax Exemption/Abatement (months)”— required if answer to “Tax Exemption or Abatement?” was “yes”

h. “Section 8 Occupancy” –-percentage required

Calculate the number of Section 8 units in the HAP contract divided by the total number of units at the property (do not exclude any “down” units); tenant-based Section 8 vouchers are not counted









“NEW” LIHTC AND ADDITIONAL TYPES OF RESTRICTIONS

LIHTC Enter the percent of restricted Units At or Below 60% AMI and At or Below 50% AMI Note: Total not to exceed 100% Note: If there are multiple regulatory agreements, provide the information associated with the more restrictive percent (lowest maximum AMI) of the agreements.

LIHTC

LIHTC a. “Original Tax Credit ($)”—required

b. “Remaining Credit Period for Tax Credits (months)”— required






Only acceptable choices are “9%” or “4%”




h. “Section 8 Occupancy” –leave blank

i. “HAP Remaining Term (months)”—leave blank







LIHTC WITH LESS THAN 8 YEARS REMAINING IN ORIGINAL15 YEAR IRS

COMPLIANCE PERIOD AND PROJECT BASED HAP / SECTION 8

Project Based HAP/Section 8 Enter the more restrictive percent (lowest maximum AMI) of the LIHTC or HAP/Section 8 restrictions. Example: If 100% of the HAP/Section 8 units are Low to Moderate Income (At or Below 80% AMI) but the LIHTC restrictions cover 100% of the units At or Below 60% AMI, then enter the LIHTC restrictions Note: Total not to exceed 100%



a. “Original Tax Credit ($)”—leave blank

b. “Remaining Credit Period for Tax Credits (months)”—leave blank









h. “Section 8 Occupancy” –percentage required

Calculate the number of Section 8 units in the HAP contract divided by the total number of units at the property (do not exclude any “down” units); tenant-based Section 8 vouchers are not counted









PROJECT BASED HAP / SECTION 8 AND ADDITIONAL TYPES OF RESTRICTIONS

Project Based HAP/Section 8 Enter the more restrictive percent (lowest maximum AMI of the “Project Based HAP/Section 8 or Other” restrictions. Note: Total not to exceed 100%



a. “Original Tax Credit ($)”—leave blank b. “Remaining Credit Period for Tax Credits (months)”— leave blank c. “Units with Income or Rent Restrictions (%)”--required








h. “Section 8 Occupancy”—percentage required

Calculate the number of Section 8 units in the HAP contract divided by the total number of units at the property (do not exclude any “down” units); tenant –based Section 8 vouchers are not counted









NOT LIHTC OR PROJECT BASED HAP/ SECTION 8 HOWEVER THERE ARE OTHER RESTRICTIONS THAT FALL WITHIN THE MAH DEFINITION PER GUIDANCE ON PAGE 2. (INCLUSIVE OF GUIDE WAIVER FOR SPECIAL PUBLIC PURPOSE)

Other If relevant due to the other restrictions and multiple agreements, enter the more restrictive percent of the Units At or Below 80%, 60%, and/or 50% AMI. Note: Total not to exceed 100%

Other Please note that restrictions not directly associated with affordability requirements (e.g., Land Use restrictions, Earthquake restrictions) must also be disclosed.

Other a. “Original Tax Credit ($)”—leave blank b. “Remaining Credit Period for Tax Credits (months)”— leave blank









h. “Section 8 Occupancy” –leave blank. (If there is a HAP contract, mark the percent of Section 8 Occupancy.) i. “HAP Remaining Term (months)”— leave blank unless

Project Based HAP “Section 8 Occupancy” applies


Not Multifamily Affordable Housing (MAH) Type





NOT MAH BUT SOME RESTRICTIONS (DOES NOT MEET THE MAH DEFINITION)

HAP Contracts

may fall into this

category if less

than 20% of

units are subject

to a Project

Based

HAP/Section 8

Contract and the

property doesn’t

meet any other

part of the MAH

definition.

Not MAH

Enter the percent of Units At or Below 80%, 60%, and/or 50% AMI Note: Total not to exceed 100%

Leave Blank Please note that restrictions not directly associated with affordability requirements (e.g., Land Use restrictions, Earthquake restrictions) must also be disclosed.

Not MAH a. “Original Tax Credit ($)”—leave blank b. “Remaining Credit Period for Tax Credits (months)”—leave blank c. “Units with Income or Rent Restrictions (%)”--required








h. “Section 8 Occupancy” –leave blank. (If there is a HAP contract, mark the percent of Section 8 Occupancy.) i. “HAP Remaining Term (months)” —leave blank unless Project Based HAP “Section 8 Occupancy” applies

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