FHFA Proposes New Benchmarks for Measuring GSEs’ Multifamily Goals

The Federal Housing Finance Agency is proposing a change to the benchmarks by which Freddie Mac and Fannie Mae measure their multifamily goals.  A rule proposed this week would see a move from using the number to the percentage of units in multifamily properties the institutions finance.

Historically, the FHFA set numerical targets for multifamily units.  The proposed rule would instead evaluate what percentage of Fannie and Freddie’s annual multifamily loan acquisitions are affordable within three different categories: a low-income goal of 61%, a very-low-income subgoal of 12% and a low-income small multifamily subgoal of 2%. The proposed rule would take effect for 2023 and 2024 benchmarks, and comments will be accepted through October 17.