Statement on Fannie Mae’s Commitment to Responsible Manufactured Housing Community Financing and Expansion of Tenant Site Lease Protections from Michele Evans, Executive Vice President and Head of Multifamily
Fannie Mae’s Multifamily business has been serving manufactured housing communities (MHC) and their residents since 2000. We are committed to expanding and strengthening tenant protections in manufactured housing communities while ensuring liquidity to this important segment of the affordable housing market. True to our mission, we are focused on keeping tenants at the forefront of what we do.
In 2019, we introduced tenant site lease protections (TSLPs) for MHC residents who live in communities that we finance, with the goal of expanding the scope and adoption of TSLPs for MHC residents across the country, particularly given the unique situation of MHC tenants (who own their home but lease the pad on which the home sits). Our program provides these protections for residents that go above and beyond most current state and local requirements, including the right to renewable lease terms, prior written notice of rent increases or of the community’s sale or closure, and other protections that enable tenants to more easily sell or rent their manufactured home.
We are very focused on increasing the number of tenants who receive these important protections. In Spring 2021, we introduced a simplified method for implementing the protections, which reduces the operational effort for owners to implement and ensures that community residents receive notice of the protections available to them.
We anticipate that these recently approved changes to our program will begin to have an impact and increase the share of tenant sites that benefit from the protections at each community with a TSLP loan. Our objective is to require protections for 100 percent of the tenant sites for each new manufactured housing community loan that participates in our program. We are targeting January 2022 for implementation of this enhancement.
We remain committed to ensuring that our program supports and serves the needs of residents in the communities we finance.
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