The Federal Housing Finance Agency (FHFA) has proposed new 2023-2024 multifamily housing goals for government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.
According to the FHFA, a new methodology for measuring the GSEs’ multifamily goals has been recommended. Instead of measuring the multifamily goals based on the number of units, the proposed rule is calling for using the percentage of affordable units in multifamily properties financed by mortgages purchased by Fannie Mae and Freddie Mac each year.
The proposed multifamily goals, the percentage share of multifamily units, include a 61% benchmark level for the low-income goal, a 12% very low-income subgoal, and a 2% low-income small multifamily subgoal.
“Today’s proposed rule would ensure that each enterprise’s focus remains on affordable segments of the multifamily market and reaffirms FHFA’s commitments to its statutory duty to promote affordability nationwide,” said FHFA director Sandra L. Thompson. “The proposed change to the methodology will make the multifamily housing goals more responsive to market conditions.”
FHFA had previously established benchmark levels at the end of last year for only 2022 in response to market uncertainty from the pandemic as well as the potential for unforeseen changes to the multifamily market in the future. According to the agency, it is not proposing any changes to the underlying criteria to determine which multifamily units qualify for the housing goals in the proposed rule.
Comments on the proposed rule can be submitted within 60 days of publication in the Federal Register.