The Federal Housing Finance Agency (FHFA) has proposed housing goals for Fannie Mae and Freddie Mac for 2015 through 2017.
The proposal includes benchmark levels for multifamily housing goals and, for the first time, establishes a subgoal for small multifamily properties (five to 50 units) affordable to low-income families.
For Fannie Mae, FHFA's proposed multifamily benchmark levels hold steady at the current 250,000 units for low-income families and 60,000 for very low-income families.
For Freddie Mac the low-income goal would gradually rise by 10,000 units each year from the current 200,000 units to 230,000 in 2017. For very low-income families the current 40,000 units goal would increase to 43,000 in 2015, 46,000 units in 2016, and 50,000 units in 2017.
Current and Proposed Multifamily Goals |
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Current |
Proposed |
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Benchmark Level |
2014 |
2015 |
2016 |
2017 |
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Fannie |
Freddie |
Fannie Mae |
Freddie Mac |
Fannie Mae |
Freddie Mac |
Fannie Mae |
Freddie Mac |
|
Low-Income Families |
250,000 |
200,000 |
250,000 |
210,000 |
250,000 |
220,000 |
250,000 |
230,000 |
Very Low-Income Families |
60,000 |
40,000 |
60,000 |
43,000 |
60,000 |
46,000 |
60,000 |
50,000 |
Under the new small multifamily property subgoal, Fannie Mae would provide financing for 20,000 affordable units in 2015; 25,000 in 2016; and 30,000 in 2017. For Freddie Mac, the goals would be 5,000, 10,000 and 15,000 respectively.
Interested parties are invited to submit comments on the proposed rule no later than Oct. 28.
|
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|---|---|---|---|
| 2015 | 2016 | 2017 | |
| Fannie Mae | 20,000 | 25,000 | 30,000 |
| Freddie Mac | 5,000 | 10,000 | 15,000 |
Single-family housing
On the single-family side, FHFA seeks comments on three alternative approaches: Alternative 1 would use the current two-step process, which involves setting both a prospective benchmark level and a retrospective market level measure based on Home Mortgage Disclosure Act data; Alternative 2 would set only prospective benchmark levels; and Alternative 3 would use only the retrospective market level measure.
If FHFA were to adopt Alternative 2, the agency would consider adopting single-family benchmark levels in the final rule that are lower than the proposed levels. Alternative 3 would not involve setting a prospective benchmark level.
The Housing and Economic Recovery Act of 2008 requires FHFA to establish annual housing goals for both government-sponsored enterprises.
Comments should be submitted to the Federal Housing Finance Agency, Division of Housing Mission and Goals, 400 7th Street, S.W., Washington, DC, 20024 or via www.FHFA.gov.
