U.S. Funding More Multifamily in 2022 – 50% Must be Affordable
The U.S. will increase loan caps for multifamily housing by 11.4% next year, and 50% of the $156B total ($140B this year) must go to “mission-driven affordable housing.”
WASHINGTON – The Federal Housing Finance Agency (FHFA) announced 2022 multifamily loan purchase caps for Fannie Mae and Freddie Mac will rise to $78 billion, or an 11.4% increase over 2021 caps.
In 2022, the Enterprises will have a combined $156 billion cap, up from $140 billion this year ($70 billion each). FHFA says the amount is based on future projections for overall growth in the multifamily sector. If demand turns out to be stronger than projected, the amount could move even higher; however, FHFA won’t lower the caps if the market proves to be smaller.
The loans have rules attached. FHFA says the 2022 amounts must have a “strong focus on affordable housing and traditionally underserved markets.” Of the total funding, 50% must be “mission-driven affordable housing,” and 25% must be “affordable to residents at or below 60% of area median income (AMI),” an increase from 20% this year.
FHFA Acting Director Sandra L. Thompson says the increase assures that Fannie and Freddie “have a strong and growing commitment to affordable housing finance, particularly for residents and communities that are the most difficult to serve.”
Along with announcing the funding increase, FHFA says it changed some of the lending definitions, notably what entails “mission-driven affordable housing.” It published information in Appendix A: Multifamily Definitions.
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