Washington, D.C. – Today, the Federal Housing Finance Agency (FHFA) issued a final rule for Fannie Mae and Freddie Mac (the Enterprises) that establishes the benchmark levels for their multifamily housing goals for 2023 and 2024 using the new percentage-based methodology outlined in the proposed rule. The housing goals ensure that the Enterprises, through their mortgage purchases, responsibly promote equitable access to affordable housing that reaches low- and very low-income families in multifamily rental properties across the country.
“The multifamily housing goals are one method FHFA employs to ensure the Enterprises remain focused on affordable segments of the market, consistent with FHFA’s statutory duty to promote affordability nationwide,” said FHFA Director Sandra L. Thompson. “The new methodology will make the multifamily housing goals more responsive to market conditions and better position the Enterprises to fulfill their affordable housing mission requirements each year.”
In August 2022, FHFA issued a proposed rule requesting public comments on proposed multifamily housing goals for the Enterprises in 2023-2024, which FHFA considered when adopting the final rule. Under FHFA’s existing housing goals regulation, the multifamily housing goals for the Enterprises include benchmark levels through the end of 2022 that are based on the total number of affordable units in multifamily properties financed by mortgage loans purchased by the Enterprises each year. The final rule amends the regulation to establish benchmark levels for the multifamily housing goals for 2023 and 2024 based on the percentage of affordable units in multifamily properties financed by mortgages purchased by the Enterprise each year.
| Final Multifamily Housing Goals for 2023-2024 | ||
|---|---|---|
| Goal | Criteria | Benchmark |
| Low-Income Goal | Percent of all goal-eligible units in multifamily properties financed by mortgages purchased by the Enterprises in that year that are affordable to low-income families, defined as families with incomes less than or equal to 80 percent of area median income (AMI) | 61% |
| Very Low-Income Subgoal | Percent of all goal-eligible units in multifamily properties financed by mortgages purchased by the Enterprises in that year that are affordable to very low-income families, defined as families with incomes less than or equal to 50 percent of AMI | 12% |
| Small Multifamily Low-Income Subgoal (5-50 units) | Percent of all goal-eligible units in all multifamily properties financed by mortgages purchased by the Enterprises in that year that are units in small multifamily properties affordable to low-income families, defined as families with incomes less than or equal to 80 percent of AMI | 2.5% |
To meet a multifamily housing goal or subgoal, an Enterprise must purchase mortgages on multifamily properties (properties with five or more units) with rental units affordable to families in each category. FHFA will continue to monitor the Enterprises’ annual performance against these benchmark levels, as well as trends in the multifamily market.
Final Rule on 2023-2024 Multifamily Enterprise Housing Goals
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The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $8.1 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at https://www.fhfa.gov, on Twitter, @FHFA, YouTube, Facebook, and LinkedIn.