NewPoint Launches Affordable Housing Lending Platform

2 min read

NewPoint Impact will provide developers with several financing options spanning the project’s lifecycle.

Photo by Josh Appel on Unsplash
Photo by Josh Appel on Unsplash

NewPoint Real Estate Capital is expanding its affordable housing lending platform with its latest partnership. The company partnered with Morgan Properties to launch NewPoint Impact, a new proprietary platform that provides additional lending options for affordable housing projects. The platform will be led by Rob Wrzosek, president of Affordable Strategies at NewPoint.

NewPoint Impact plans to match private capital with government-subsidized products to provide financing for affordable housing projects across the U.S. The new platform will provide affordable housing developers with several financing options spanning the project’s lifecycle, from construction loans to long-term permanent financing.

According to NewPoint, the financing amounts start at $8 million and are available to both for-profit and non-profit 501(c)(3) developers. The loan terms can range from two to 40 years, depending on the execution, according to NewPoint. NewPoint Impact will provide construction, acquisition or rehabilitation financing in a variety of financing solutions including four percent tax-exempt bond financing, four percent Fannie Mae M.TEBs, synthetic 221(d)(4), and resyndication bridge loans. According to NewPoint, these financing solutions were created with direct input from affordable housing developers.

ASSISTING AFFORDABLE HOUSING PROJECTS

Wrzosek said in prepared remarks that the goal with NewPoint Impact was to provide affordable housing investors and developers with financing solutions for contemporary challenges. He added in his prepared statement that the affordable housing sector has remained relatively unchanged in recent years, even though the market has continued to evolve.

David Brickman, CEO of NewPoint, said in prepared remarks that NewPoint had already established an affordable housing platform with experts in Fannie Mae, Freddie Mac and FHA executions. Earlier this year, NewPoint secured several 10-year Freddie Mac loans for a four-property portfolio in Arizona. Brickman added in his prepared statement that NewPoint is able to provide more financing solutions to help solve the U.S.’ affordable housing crisis.

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