FHFA Proposes Affordable Housing Goals for Fannie & Freddie
On Aug. 29, the Federal Housing Finance Agency (FHFA) published proposed affordable housing goals for Fannie Mae and Freddie Mac for 2015-2017. The current annual affordable housing goals, required under the Housing and Economic Recovery Act of 2008, are effective through the end of 2014.
With respect to multifamily goals, FHFA proposes to require Freddie Mac to meet higher goals for the number of multifamily units it finances that are affordable to low-income and very low-income families, and proposes no change in Fannie Mae’s multifamily goals. For Freddie Mac, the low-income multifamily goals would increase from 200,000 units in 2014 to 210,000 units for 2015; 220,000 for 2016; and 230,000 for 2017. Freddie Mac’s very low-income multifamily goals would increase from 40,000 units to 43,000 units in 2015; 46,000 in 2016; and 50,000 in 2017. Fannie Mae’s annual low-income multifamily goal would remain 250,000 units, and its annual very low-income multifamily goal would remain 60,000 units.
FHFA’s proposal also recommends establishing, for the first time, a sub-goal for small multifamily properties (5-50 units) affordable to low-income families. FHFA proposes to require Fannie Mae to finance at least 20,000 small multifamily property units in 2015; 25,000 in 2016; and 30,000 in 2017. FHFA proposes to require Freddie Mac to finance at least 5,000 small multifamily property units in 2015; 10,000 in 2016; and 15,000 in 2017.
The agency said the goal levels reflect its expectation that the enterprises’ market share will decline in the coming years due to the increased participation by the private sector in the multifamily lending market.
FHFA is requesting comments on all aspects of the proposed rule. And comments are due by no later than Oct. 28.