The Federal Housing Finance Agency announces new caps for multifamily loan purchases.
The Federal Housing Finance Agency (FHFA) announced 2023 multifamily loan purchase caps for Fannie Mae and Freddie Mac. The combined total for the Enterprises is $150 billion—$75 billion each.
The limit is a $3 billion decrease from the $78 billion caps in 2022, which FHFA called an “anticipated contraction of the multifamily originations market in 2023.”
FHFA is focusing on affordable housing with a requirement that at least 50% of business of Fannie Mae and Freddie Mac be for mission-driven, affordable housing.
“The 2023 multifamily loan caps, coupled with a new mission-driven category for workforce housing properties, will continue to ensure that the Enterprises have a strong commitment to addressing the need for affordable housing,” said Sandra L. Thompson, FHFA Director, in a release. “The new workforce housing category will provide incentives for conventional borrowers to maintain rents at affordable levels for extended periods of time.”
FHFA is also making changes to requirements for mission-driven, affordable housing. This includes creating the new category to focus on affordable workforce housing and now including senior housing and small 5–50-unit properties in the Other Affordable mission-driven category.