Yesterday, FHFA released new multifamily volume caps for 2021. Each Enterprise will have $70 billion across four quarters – a change from the five-quarter period covered by the previous cap.
Fannie Mae plays an essential role in providing liquidity, stability, and affordability to the multifamily market. FHFA’s new cap structure positions us to further address the country’s urgent need for quality, sustainable, and affordable rental housing – something we’ve long prioritized.
The mission-driven, affordable housing business requirement has increased to 50% this year, up from 37.5%. Within this 50% mission category, 20% must come from units affordable to residents at 60% area median income (AMI) or below. Additionally, FHFA has made adjustments to the “mission-driven” definition to help provide standardization across Housing Goals and the Duty to Serve program. The new definition will allow us to deepen the work we do in areas like rural and Manufactured Housing Communities (MHC).
As we learn more about the new cap, we will communicate early and often. In the coming days, look for an updated Multifamily Affordability Estimator (MAE) reflecting 2021 benchmarks. We will also discuss the new production cap during tomorrow’s production call and hope you will join us. If you have specific questions, please reach out to your deal team – we want to know your questions and get you answers.
Our team – and our DUS® model – are built to adapt to changes. With your partnership, we look forward to continuing to serve the market in the coming year.