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FHFA Proposes 2025-2027 Enterprise Housing Goals

September 10, 2024

On August 22, the Federal Housing Finance Agency (FHFA) proposed single-family and multifamily housing goals for 2025-2027 that Fannie Mae and Freddie Mac (the Enterprises) would be required to meet on an annual basis. Comments on the proposed rule are due Oct. 28, 2024.

Background: Since 2010, FHFA has established annual housing goals for Enterprise purchases of single-family and multifamily mortgages consistent with the requirements of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992.

The most recent amendments to the housing goals regulation include:

• A 2021 rule to establish benchmark levels for the 2022–2024 single-family housing goals and the 2022 multifamily housing goals; and
• A 2022 final rule to establish benchmark levels for the 2023–2024 multifamily housing goals.

Why it matters: According to FHFA, these goals ensure that the Enterprises, through their mortgage purchases, responsibly promote equitable access to affordable housing.

What they're saying: In a statement accompanying the proposal’s release, FHFA Director Sandra Thompson stated:

“Given persistent challenges in the housing market, FHFA is proposing benchmark levels that reflect these dynamics and continue to ensure that the Enterprises remain focused on supporting key affordable housing segments while operating in a safe and sound manner. The goals proposed today offer a meaningful and realistic calibration that takes into account current and forecasted economic factors.”

The 2025-2027 proposed housing goals include separate categories for single-family and multifamily mortgages on housing affordable to low-income and very low-income families.

By the numbers: The multifamily benchmark levels are summarized below:

• Low-Income Goal: 61% of units affordable at 80% of area median income (AMI).
• Very Low-Income Goal: 14% of units affordable at 50% AMI.
• Small Multifamily Low-Income Subgoal: 2% of units in five-to- 50-unit multifamily properties affordable at 80% AMI.

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