The expanded channel should double or triple the company's origination platform within three years, SVP C. Lamar Seats tells GlobeSt.com. The difference between the two products--workforce and affordable housing--is a fine but distinct difference, he adds. "These are apartment rentals that target police men or women, fire fighters, teachers--people who earn hourly wages." Typically such renters earn 115% of the area's medium income, he says. Enterprise is beginning to finance these categories immediately, he says, having recently received Fannie Mae approval for the platform's expansion.
Within three years, Seats expects Enterprise Community Investment to be originating between $300 to $400 million in total. Of that amount, he predicts workforce origination will comprise between 40% to 50%.
The company, not surprisingly, is leveraging Fannie Mae's affordable platform for this push. Already the company has tapped the GSE to deliver $543 million in financing to develop 16,000 affordable apartments, it says.
Enterprise also provides Federal Housing Administration multifamily and health care loans as well as US Department of Agriculture Section 538 Rural Development loans nationwide through its Multifamily Mortgage Group.
All together the group provides Fannie Mae DUS Forward Cash/MBS Commitment for rehabs and new construction; Fannie Mae DUS Immediate Funding for acquisitions and refinances; Fannie Mae DUS Bond Credit Enhancement; construction and permanent financing for multifamily and seniors housing; refinancing or acquisition of existing multifamily properties and financing for residential care facilities through FHA lending; and debt for low-income housing tax credit transactions.
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