Making Affordable Housing Happen

Fannie Mae is delighted to announce that we will resume Low-Income Housing Tax Credit (LIHTC) activities to provide a reliable source of capital for affordable rental housing and underserved markets, effective November 16, 2017.

Fannie Mae has deep experience bringing together partners and investors in this space to create additional units of affordable workforce housing. We are positioned to provide immediate and ongoing positive impact in the affordable multifamily market through our LIHTC investments. Our LIHTC program investments will be done in a safe and sound manner and in alignment with other Fannie Mae business activities that support multifamily affordable housing.

Helping thousands find affordable rental housing

The LIHTC program is a proven and effective way to create affordable housing supply for low- and very low-income families. The LIHTC program currently finances the construction and rehabilitation of almost all subsidized housing in the U.S. Approximately 90,000 apartment units are built each year using LIHTC, enabling thousands of Americans to find affordable rental housing. It is an incredibly important program and we are thrilled to re-enter the market to help solve some of the toughest and most persistent challenges in affordable housing.

Our goal is to support the production and preservation of affordable rental housing when and where those needs are not being adequately met. Our re-entry into the market is a significant step forward in positioning Fannie Mae to better serve the multifamily market and play an integral role in addressing America's affordable housing crisis.

Frequently Asked Questions

The federal government's Low-Income Housing Tax Credit (LIHTC) program encourages the investment of private equity for developing affordable rental housing for low-income and very low-income households. It does this by awarding tax credits to taxpayers who invest in multifamily rental housing that serves these low-income households. Fannie Mae's re-entry into this critical market will provide a reliable source of capital needed for affordable rental housing in diverse economic cycles and markets.

The LIHTC program has long been the most effective tool at driving housing supply for low- and very low-income families. The LIHTC program has built nearly 3 million apartment units, housing about 6.7 million low-income families, and currently finances the construction and rehabilitation of almost all subsidized housing in the U.S. Approximately 90,000 apartment units are built each year using LIHTC investments, enabling thousands of Americans to find affordable rental housing.

As we have in the past, we will partner with best-in-class syndicators, both national and regional, nonprofits and for-profits. While we may expand key partnerships established in the past, we may also enter into new partnerships that support our business objectives. Our LIHTC program investments will be conducted in a safe and sound manner and in alignment with other Fannie Mae business activities that support multifamily affordable housing.

The tax legislation recently passed by Congress maintains the LIHTC program and we do not anticipate any impact on our ability, capacity, or plans to participate as a LIHTC equity investor. At the same time, the legislation makes other changes to the tax law that may reduce investor appetite for participating in the LIHTC program and impact the economics around affordable rental housing. Fannie Mae remains committed to the LIHTC program, which has long been the most effective tool at expanding the supply of affordable rental housing for low- and very low-income families.

"We look forward to expanding our relationships and forming new partnerships, as well as enhancing our product line to offer equity financing solutions to support the ongoing needs of the market."

Press Release

Fannie Mae Re-Enters Low-Income Housing Tax Credit Market

Adds reliable source of Capital for Affordable Rental Housing.

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