0. New Mexico Housing Summit Preserving Multi-Family Housing
Presented by
Bryan Hooper
New Mexico Housing Summit Preserving Multi-Family Housing
September 19-20, 2016

1. Agenda Maturing Mortgage Challenge Maturing Mortgage Exit Loan Tool
Maturing Mortgage Retention through MPR Program
Buyer Seller Meeting
Open Data and PolicyMap Partnership

2. Maturing Mortgage
I’ll start with a challenge that we’re currently very focused on. As many of you know, RHS’ Section 515 Rural Rental Housing and Section 514 Farm Labor Housing programs have been around for over 40 years, and as a result, increasing numbers of the mortgages made through those programs are coming due.
When the last mortgage on a MFH property matures, the owner is no longer under contract to offer affordable rents to low- and moderate-income families, and the statute does not allow Rental Assistance (RA) to continue supporting the families’ tenancy.
RHS is working hard to address this challenge. We are using our existing tools to retain at risk properties through:
Re-amortizing loans and extending their maturity date;
Deferring payment on loans for up to 20 years to prevent loan payoff;
Prioritizing rehabilitation of maturing mortgage properties in the Multi-Family Preservation and Revitalization program; and
Providing Section 515 loans to nonprofits to finance the acquisition of existing Section 515 properties.

3. Maturing Mortgage (Continued)
RHS continues its outreach to borrowers to re-amortize the remaining balance (extending the loan term) or deferring the loan for up to 20 years through the Multi-Family Preservation and Revitalization Program (MPR).
We are also increasing outreach to nonprofits that may be interested in acquiring properties that may leave our affordable housing program through maturity of the Section 515 loan or prepayment of the loan.
We’re making progress—almost 50% of the 62 properties due to mature in 2015 remained in the program, and we are working to increase that percentage this year.

4. Maturing Mortgage Exit Loan Tool
Tracking the potential impact of historical changes within the statutory and regulatory framework of the Section 515 program have made it complicated to track and extract data in a way that allows for a clear and consistent calculation of an exit date estimate for each property within the portfolio.
We contracted with FI Consulting to assist in calculating and validating estimated exit dates for all properties currently within the USDA Section 515 portfolio.
The analysis indicated 1,550 Section 515 properties would exit the program by 2028.
RD views the loss of any affordable housing with concern. So we used this analysis as an opportunity to improve the information we provide our stakeholders, so enable them to help us save that affordable housing.

5. Maturing Mortgage Exit Loan Tool (Continued)
A new tool was created that will provide consistency, predictability and transparency of our exiting property data. The Maturing Exiting Loan Tool, which will be available to the public, will allow access to regularly updated portfolio data and allow interested parties to monitor the Section 515 portfolio for at risk properties that could be retained through actions by the existing owner or by parties interested in acquiring the property to revitalize and retain the affordable housing. The data the tool will provide includes:
An overview of properties funded by date of operation – including historic production trends by program and a number of other program variables;
An overview of loan amounts by year, loan term, and expected maturity date of the last mortgage on each property;
Properties level data to give interested parties greater detail about each property, including property type, location, and contact information to explore alternatives to retain properties identified as at risk of exiting the program; and
The capability of generating property level data geographically, for parties interested in targeting properties located in specific states.

6. Buyer Seller Meetings
We worked with rural housing stakeholder to convene Buyer-Seller Meetings in:
North Carolina in July
Indiana in August
Iowa in September
The goal of these meetings was to establish communications between potential buyers and sellers of 515 properties that would lead to the transfer of at-risk properties to owners willing to keep them in the program.
RD is ready to support any industry discussions that will help identify opportunities for the transfer of at risk 515 properties to ownership interested in remaining with RD. If interested, please reach out to New Mexico RD staff.

7. Open Data and PolicyMap Partnership
We have been working to publicly release data across every program area in which RHS provides loans, guarantees and grants, including: multifamily housing, single-family housing, and community facilities. This data is scheduled for ongoing regular release.
RHS has contracted with PolicyMap to help visualize the data along with key indicators from the Census and other public sources.
On July 22, RHS released a suite of investment data to increase transparency and better educate stakeholders and appropriators about RHS program investments. The data suite includes information about loans, loan guarantees, and grants invested through RHS Single Family Housing, Multi-family Housing, and Community Facilities programs.

8. Open Data and PolicyMap Partnership (Continued)
The data suite on RHS-wide investments can be found in three places: (1) on USDA’s Service Center Agencies Online Services page, (2) on Data.gov, and (3) in PolicyMap, an online data mapping tool, where it can be overlaid with a wide array of other indicators.
The release of this data is one component of the Department-wide effort to become more transparent in order to facilitate more effective collaboration with USDA’s stakeholders, partners, and lawmakers to address rural community needs Nationwide.

9. Rural Development
Multi-Family Housing
Office: