The Federal Housing Finance Agency (FHFA) today announced that the 2021 multifamily loan purchase caps for Fannie Mae and Freddie Mac (the Enterprises) will be $70 billion for each Enterprise. The cap structure allows the Enterprises to offer a combined total of $140 billion in support to the multifamily market.
At least 50% of the Enterprises multifamily loans are required to be used for affordable housing. Under the 2020 cap structure, 37.5% of the multifamily business had to be mission-driven, affordable housing.
Additionally, for the first time, affordable housing manufactured housing communities (MHC) must either be resident/government/nonprofit-owned or must have tenant pad lease protections to be counted as mission-driven, affordable housing.
FHFA also requires at least 20% of the Enterprises’ multifamily business be affordable to residents at 60% Area Median Income (AMI) or below. FHFA says that this new minimum share of business affordable to 60% of AMI households will assure that the Enterprises' multifamily businesses have a strong and growing commitment to affordable housing finance, particularly for residents and communities that are most difficult to serve.
View the FHFA press release.