It’s hard to watch the images of communities impacted by wildfires, hurricanes, and severe storms without thinking about the people and businesses behind them.
For multifamily owners and developers, there’s another reality to consider: how do you better protect the properties people call home?
That question is becoming more complicated as insurance costs rise, deductibles increase, and owners take on more risk themselves. Building resilience is no longer just about limiting property damage. It can affect operating costs, long-term asset performance, and ultimately, a project’s financial picture.
The industry is responding.
One example is FORTIFIED Multifamily™, a voluntary construction and re-roofing standard developed by the Insurance Institute for Business & Home Safety (IBHS). It focuses on building practices designed to help multifamily properties better withstand hurricanes, high winds and severe storms.
This summer, IBHS also introduced Wildfire Prepared Multifamily for duplexes, townhomes, apartments and condominiums. The program focuses on practical measures such as defensible space, roofing and reducing the ways fire can spread to and between buildings.
While neither program is affiliated with AGM Financial or required for FHA financing, both are part of a larger trend we are watching closely.
As owners shoulder more risk, decisions about how properties are designed, built, and renovated will play a bigger role in managing that exposure. Over time, resilience could become an increasingly important consideration in insurance, operating costs, and project economics.
For multifamily developers, the takeaway is simple: risk mitigation is becoming part of the financial conversation.
At AGM Financial, we help borrowers look beyond the loan itself to understand the trends and changing market conditions that can affect a multifamily project. If you’re evaluating a new development, acquisition, or refinance, talk with our FHA experts early. We can help you think through the financing picture and what may affect it before you get too far down the road.
About AGM Financial Services, Inc.
Family-owned with over 30 years of experience, AGM has closed over $10 billion in FHA-insured multifamily project loans nationwide. We underwrite, fund, and service all of our loans. Developers and owners can count on AGM to be accessible, transparent, consistent, and ready to lend. From new construction to substantial rehabilitation to acquisition and refinance — for both market-rate and affordable projects — we can get the deal done. To learn more about AGM, call 800.729.4266 or visit agmfinancial.com.