FHFA Sets Higher Affordable Housing Goals for Fannie and Freddie
The Federal Housing Finance Agency (FHFA) recently issued a final rule for Fannie Mae and Freddie Mac that establishes the benchmark levels for the multifamily housing goals for 2022. To help meet these goals, Fannie Mae and Freddie Mac, in part, capitalize on opportunities to finance LIHTC sites. 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 ensure that the Fannie Mae and Freddie Mac, through their mortgage purchases, responsibly promote equitable access to affordable housing that reaches low- and moderate-income families, minority communities, and other underserved populations. FHFA issued a proposed rule in August 2021 that requested public comment on proposed housing goals for 2022–2024, which FHFA considered in adopting the final rule.
The rule sets higher benchmark levels for multifamily housing goals. Specifically, the rule requires Fannie Mae and Freddie Mac to support the development of at least 415,000 rental homes annually that are affordable to renters with incomes at or below 80 percent of AMI, an increase from 315,000 rental homes in 2021. The subgoal for units affordable to very low-income renters (those earning 50 percent of AMI or below) is also increased from 60,000 to 88,000 units. The subgoal for affordable units in small multifamily properties (those properties with five to 50 units) is increased from 10,000 for both institutions in 2021 to 17,000 for Fannie Mae and 23,000 for Freddie Mac.