Fannie Mae has announced the availability of its Community Investments Mezzanine Moderate Rehabilitation (CI Mezz-Mod Rehab) product for developers with moderate to substantial rehab needs.

The product is designed for multifamily properties with renovations that cost $5,000 or more per unit. Delegated Underwriting and Servicing (DUS) lenders underwrite and provide a rate lock on both the DUS and mezzanine loans. The mezzanine loans are then funded by The Community Investment Mezzanine Fund LP, a partnership between RCG Longview, a New York City-based real estate opportunity manager, and Fannie Mae.

The mezzanine loan minimum is $500,000. The maximum is $50 million for single assets and up to $150 million for multiple asset portfolios.

Fannie Mae’s DUS Supplemental Loan program may be used to pay off the mezzanine debt. The mezzanine loans will have a declining prepayment schedule after a one-year lockout period. The prepayment premium schedule starts at 2 percent and declines by 50 basis points per year. The product also offers an amortization schedule of up to 30 years, with interest-only options available.

“Fannie Mae has enhanced its CI Mezz-Mod Rehab product to be very competitive and offer a financing solution for the nation’s affordable rental housing stock in need of a serious upgrade,” said Richard Lawch, senior vice president of community investments at Fannie Mae.

Fannie Mae unveiled the product in February, although it was not available at that time.