The Federal Financing Bank (FFB) multifamily risk-sharing initiative with Housing Finance Agencies (HFAs) officially ended on Dec. 31, 2019. In February of 2018, HUD announced that it would end the FFB financing initiative on Sept. 30, 2018. In September of 2018, HUD then granted an extension through the end of the year to review the program’s effectiveness.
The FFB Risk Share Initiative was started in 2015 to stimulate affordable housing production in response to tightening bond markets and lack of private sector funding and liquidity that followed the financial crisis. The initiative is designed so that FHA and HFAs share in the risk of the mortgage. The program financed over 1,462 loans, totaling nearly $9.4 billion in principal and supporting more than 163,000 affordable rental homes with 38 participating HFAs.