California Housing Finance Agency (CalHFA) in Relation to HUD 223(f) Loans
The California Housing Finance Agency, also known as CHFA, is an independent California state agency that focuses on helping increase the amount of affordable housing in California. CalHFA does this by issuing bond-backed home loans, multifamily loans and assistance to multifamily developers.
CalHFA is Part of the FHA-HFA Multifamily Risk Sharing Program
Instead of taking out a traditional HUD multifamily loan, such as the HUD 223(f) loan, borrowers may wish to take out an FHA multifamily loan through the FHA-HFA Multifamily Loan Risk-Sharing Program. According to the National Council on State Housing Agencies (NCSHA), this 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.” And, fortunately for developers in California, CalHFA is one of those agencies. To learn more, check out this presentation from the National Association of Local Housing Finance Agencies (NALHFA.)