New data released by the U.S. Department of Housing and Urban Development (HUD) shows that the Section 542(c) Risk Share and Federal Financing Bank (FFB) program continues to serve as a useful tool for state Housing Finance Agencies (HFAs) aiming to increase affordable housing production across the United States. From 2024 to 2025, interest in the Risk Share-FFB program has grown, as HFAs look for better ways to fund new multifamily developments.
The Office of Multifamily Production at HUD released new data this month on firm commitments and initial endorsements within the Risk Share program, reflecting a healthy pipeline of projects, despite the headwinds facing the multifamily real estate sector. $121,173,100 in financing representing 1,035 units are reported to have firm commitments or initial endorsements with Risk Share/FFB financing through Q2 2025, indicating a strong pipeline and ongoing commitment to expanding affordable housing through this program. Expect additional loan commitments and endorsements to follow as we come closer to the end of the year.
In a survey of HFAs conducted by the National Council of State Housing Agencies (NCSHA) in partnership with CPE, eight states reported multifamily housing projects scheduled to close this year using Risk Share/FFB financing. When asked about the scale of their development pipelines, six of the eight HFAs responded with a combined total of 7,398 units in progress.
Looking beyond 2025, five of the twenty HFAs that responded to the survey have confirmed plans to close multifamily housing projects using FFB in 2026 and 2027. In addition, seven more HFAs indicated that they might pursue FFB closings in those same years, suggesting increased interest and potential production through this program.
Since 2015, the Risk Share/FFB program has provided over $6.3 billion in loan commitments representing 52,390 homes.
By CPE’s count, there are now 23 HFAs approved for both Risk Share and FFB financing. This includes 19 state HFAs as well as DCHFA, Massachussetts Housing Partnership, Montgomery County HOC, and New York City HDC. CPE assisted Michigan State Housing Development Agency (MSHDA) in getting approval for FFB in early 2025, becoming the latest state to leverage this program. MSHDA’s enrollment reflects the growing recognition of Risk Share-FFB as an option for states looking to increase affordable housing production with another financing tool outside of competitive tax credits and federal subsidies.
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