FHA-HFA Risk-Share Program

Congress established the Federal Housing Agency (FHA) – Housing Finance Agency (HFA) Multifamily Risk-Sharing program in 1992 to increase and speed up FHA’s multifamily mortgage production. The FHA-HFA Risk-Sharing program allows state HFAs that meet rigorous financial standards to underwrite FHA multifamily loans in return for sharing the risk of losses on those loans.

The FHA-HFA Risk-Sharing program has been very successful, with 28 HFAs financing or refinancing over 1,771 loans, totaling nearly $18.7 billion in principal and supporting more than 210,247 affordable rental homes since Fiscal Year (FY) 2001. In FY 2023 alone, FHA issued firm commitments to HFAs to finance 83 loans, with a total principal balance of $1.012 billion, supporting 8,543 rental homes.

In addition, since 2015, HUD has partnered with the U.S. Department of Treasury to use the Federal Financing Bank (FFB) to support the FHA-HFA Risk-Share Program to help stimulate even further affordable housing production. Although the program temporarily lapsed from 2019 to 2021, the FFB Risk-Share program has closed or committed $4.9 billion in loans to help HFAs finance 42,000 units since the program began.


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Photo Credit:  Texas Department of Housing and Community Affairs