On November 10, FHFA announced the multifamily loan acquisition volume caps for the GSEs in 2023. Each Enterprise can acquire up to $75 billion in multifamily loans for the year, a decrease from the $78 billion cap in place for 2022.
Fannie Mae is committed to our mission, the financing of quality affordable rental housing across the country, and providing a stable source of liquidity for financing multifamily rental housing. The FHFA cap for 2023 will provide opportunities to create and preserve even more affordable rental housing.
Some highlights from the release:
- At least 50% of the Enterprises’ multifamily business be mission-driven affordable housing. This is the same as the 2022 requirement.
- FHFA has again modified certain definitions of multifamily “mission-driven” affordable housing to:
- Remove the requirement that 25% of the Enterprises multifamily business be affordable at 60% of AMI or below to reduce inconsistencies with FHFA’s Housing Goals regulation.
- Add a new category to include the preservation of workforce housing for loans on properties with rent or income restrictions.
- Add seniors housing and small 5-50 unit multifamily properties to the Other Affordable mission-driven category.
- Classify as mission driven loans to finance energy or water efficiency improvements with units affordable at or below 80% of AMI (up from 60% AMI).
We will share more information as it becomes available. The Multifamily Affordability Estimator (MAE) will be updated soon to reflect the new 2023 benchmarks. As always, please reach out to your deal team with any questions.
Our continued partnership is what makes the DUS® model such a success. We look forward to continuing our partnership and serving the market in the coming year.
