Housing Goals: Final rule for 2015-2017

Multifamily Wire

Multifamily Facts

Jeff HaywardAugust 25, 2015 -- On Wednesday, August 19, 2015 FHFA adopted a final rule for 2015 - 2017 multifamily housing goals for the enterprises. For this three-year reporting period, the multifamily housing goals will be the same for both GSEs in all categories. Additionally, FHFA set a new goal for the first time for small (5- to 50-unit) multifamily properties.

The housing goals for multifamily properties are as follows:

  • Low-income (80% of AMI and below) goal is 300,000 units annually (up from the proposed 250,000 units for Fannie Mae),
  • Very low-income (50% of AMI and below) subgoal is 60,000 units annually (no change from the proposed goal for Fannie Mae),
  • Small Low-income (80% of AMI and below) subgoal for 5- to 50-unit multifamily properties of 6,000 units in 2015, 8,000 units in 2016, and 10,000 units in 2017.

We are pleased to have final multifamily housing goals. Affordable workforce rental housing will always be a priority for Fannie Mae, as the majority of the units we finance supports this market segment. Additionally, our dedicated Multifamily Affordable Housing team ensures that borrowers can quickly obtain innovative and flexible solutions for complicated affordable housing transactions involving Low Income Housing Tax Credits, tax-exempt bonds, and Section 8 subsidies.

Small loans also are a critical part of the work we do to make affordable multifamily housing a reality for many renters. Fannie Mae has been financing small loans for over 15 years in every market, every day and we look forward to continuing our work in this space. Multifamily's variety of product offerings, streamlined underwriting and processing, and increased delegation to our Small Loan Lenders means a greater speed of execution for our Lenders and Borrowers in urban, suburban, and rural markets.

Best,

Jeff

Links for reference:

FHFA Press Release

Final Rule