Anatomy of a Deal

Preserving a cultural icon of affordable senior living in D.C.’s Chinatown

Wah Luck House | Washington, D.C.

Lender: Greystone Servicing Company
Borrower: National Foundation for Affordable Housing Solutions (NFAHS)
Financing: Low-Income Housing Tax Credit (LIHTC), MBS as Tax-Exempt Bond Collateral (M.TEB) Execution, Moderate Rehab

152 units

Property details


Year built

$50.6 million

Loan amount

The challenge

As one of the last remaining affordable properties in D.C.’s Chinatown, Wah Luck House is both an economic and cultural stronghold for its elderly residents, many of whom immigrated to the U.S. from China. National Foundation for Affordable Housing Solutions (NFAHS), a nonprofit based in Maryland, planned to preserve Wah Luck as a source of affordable housing while providing much-needed upgrades.

The solution

The transaction utilized Fannie Mae’s M.TEB product, which allows for faster closings and declining prepayment options. M.TEB also allows for flexibility in loan tolerances based on properties’ affordability. Wah Luck House, fully income-restricted under the LIHTC program, was eligible for a 90% loan-to-value ratio and 1.15x minimum debt cover.

The result

With $50 million in low-cost financing from Fannie Mae, NFAHS acquired Wah Luck House and completed $9.5 million in tenant-in-place renovations ($51,000/unit). The property remains highly affordable, with 100% of units restricted to 60% Area Median Income or below through a Section 8 Housing Assistance Payments (HAP) contract.

The DUS® model moves with the market, allowing Fannie Mae to serve as a source of liquidity and affordability throughout the real estate cycle. The adaptability and proven success of DUS make it a model our partners can rely on.

Charles Ostroff
SVP & Multifamily Chief Credit Officer, Fannie Mae