FHFA Proposes Affordable Housing Goals for Fannie Mae and Freddie Mac
The Federal Housing Finance Agency (FHFA) recently set new housing goals for Fannie Mae and Freddie Mac for 2018 through 2020. The FHFA is required by the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 to set annual housing goals for mortgages purchased by Fannie and Freddie. The housing goals apply to multifamily mortgages, and there are three categories: low-income, very low-income home, and small multifamily low-income.
To meet a multifamily housing goal, Fannie and Freddie must purchase mortgages on multifamily properties (with five or more units) with rental units affordable to families in each category. There’s also a sub-goal for properties with five to 50 units. The FHFA measures these goals against benchmark levels it sets.
Compared to the previous goal, the 2018-2020 goal for multifamily low-income units rose by 15,000 units, from 300,000 to 315,000. And within that goal, the sub-goal for very low-income units remains the same at 60,000, and similarly, the sub-goal for small multifamily low-income units remains 10,000 units.