Fannie Mae Announces Investment in LIHTC
Back in November, both Fannie Mae and Freddie Mac announced they are now re-entering the Low Income Housing Tax Credit market, the federal program that encourages investment of equity into affordable rental housing. Following this news, Fannie Mae recently announced it will invest $100 million to help Hurricane Harvey-impacted areas and underserved markets with a low-income housing tax credit fund that will focus on supporting affordable multifamily housing.
The fund will focus on Hurricane Harvey-impacted areas, rural markets, and Native American housing. It will back multifamily projects in these underserved areas by funding for rehabilitation and construction. The fund will also support resiliency features in properties that are located in markets subject to flood and storm activity, and is expected to make its first investment during the first quarter of 2018.
The Federal Housing Finance Agency approved Fannie Mae’s re-entry into the LIHTC market as an equity investor.