Greystone Secures $92 Million in Fannie Mae Financing for Three New York Affordable Housing Communities on Behalf of Metropolitan Realty Group

Greystone has arranged $92 million in Fannie Mae financing across three Section 8 affordable housing communities in New York on behalf of Metropolitan Realty Group, the firm announced July 23, 2026. The refinancing transaction reflects continued capital-markets activity in mission-driven multifamily at a time when agency lenders are prioritizing affordable and workforce housing within their lending mandates.

Deal Structure and Financing Details

The $92 million in financing was originated through Fannie Mae's Multifamily Affordable Housing program, which offers underwriting to actual Section 8 Housing Assistance Payment contract rents, lower debt-service coverage ratio thresholds, and higher allowable loan-to-value ratios compared with conventional market-rate loans. The program is designed specifically for rent-restricted assets where HAP-backed cash flows provide income visibility independent of short-term local rent or wage volatility.

All three properties are located in New York and operate as project-based Section 8 communities. The portfolio refinancing replaces existing debt with long-term, fixed-rate agency paper — a structure that allows the sponsor to lock in cost of capital in a still-elevated interest-rate environment while freeing proceeds for capital expenditure reserves and property modernization needs common to the aging affordable housing stock that characterizes much of New York's subsidized inventory.

Metropolitan Realty Group is an active owner and operator of project-based Section 8 and similar affordable multifamily assets across New York. Stabilized affordable portfolios operating under long-term HAP contracts typically maintain occupancy rates of 90 percent or higher, driven by chronic undersupply of subsidized units relative to demand.

Fannie Mae's Affordable Housing Mandate

Fannie Mae operates under a duty-to-serve mandate that carves out favorable treatment for mission-driven affordable housing, giving this category of financing priority access to GSE balance sheet capacity relative to purely market-rate product. Long-term fixed-rate Fannie Mae paper — often structured with 30-year amortization and, in some cases, interest-only periods depending on debt-service coverage — has become an increasingly attractive alternative to shorter-term bank or bridge loans as those instruments mature into a higher-rate environment.

For sponsors holding aging affordable communities, the refinancing window also addresses capital needs at older properties, including mechanical systems, façade work, energy upgrades, and elevator modernization. Proceeds structured under Fannie Mae's affordable programs can be earmarked for capital reserves alongside debt retirement, supporting both asset preservation and regulatory compliance with evolving local building codes.

Market Context: Affordable Multifamily as a Defensive Sector

The transaction comes as institutional capital continues to rotate toward affordable and workforce multifamily, a segment that has demonstrated resilience relative to other commercial real estate categories facing elevated vacancy and repricing pressure. Affordable multifamily's income stability — rooted in government-backed subsidy streams rather than tenant-by-tenant market exposure — has drawn increased attention from lenders and investors seeking predictable cash flows.

Section 8 HAP contracts effectively delink property income from short-term local rent market conditions, providing underwriters with a cash flow profile that more closely resembles a government credit obligation than conventional residential leasing risk. That characteristic has supported continued agency lending activity in the sector even as credit conditions tighten for other asset classes.

Greystone is a national commercial real estate finance company with an established presence in agency lending, including Fannie Mae, Freddie Mac, and FHA multifamily programs. The firm has been active in affordable housing preservation financing across multiple market cycles.

Quotes

"Greystone understands the complexities of affordable housing financing in every market cycle," according to language included in the announcement. "The firm's commitment to execution and client service was evident throughout the transaction, and we appreciate their expertise in delivering a financing" that serves the portfolio's long-term needs.

"The preservation of affordable housing remains one of the most important priorities in our industry," the announcement noted. "Every transaction represents an opportunity to help owners secure long-term financing that strengthens their properties, preserves affordability, and" supports the communities these assets serve.

About the Parties

Greystone is a New York-based commercial real estate finance firm providing a range of lending, investment, and advisory services with an emphasis on multifamily and healthcare sectors. Metropolitan Realty Group is a New York-based real estate owner and operator focused on affordable multifamily communities. Fannie Mae is a government-sponsored enterprise that provides liquidity to the U.S. mortgage market, including a dedicated multifamily affordable housing lending program.