Fannie, REIT Launch $100MM AH Initiative

A $100 million multifamily housing initiative to finance small, affordable properties in major markets has been announced by Fannie Mae and the Community Development Trust, the first real estate investment trust created for the sole purpose of acquiring community development assets.The initiative establishes a secondary-market facility to help provide liquidity for small multifamily loans averaging $2 million. Fannie Mae will buy the senior participation in small loans on properties that qualify for federal Low Income Housing Tax Credits, and CDT will retain the junior participation, the companies said. "Our primary goal is to preserve and increase the stock of affordable housing, both through long-term equity investments in properties and by providing a secondary market for permanent fixed-rate mortgages," said Mark Jarrell, CDT's senior vice president for debt. The companies can be found online at http://www.fanniemae.com and http://www.commdevtrust.com.