NAHMA Update: FHFA Final Rule allows Fannie Mae and Freddie Mac to target underserved markets
- By: admin
- On: 12/15/2016 14:10:48
- In: NAHMA News
Yesterday, the Federal Housing Finance Agency's (FHFA) published the Final Rule regarding Fannie Mae and Freddie Mac's Duty to Serve (DTS) underserved markets in affordable housing, manufactured housing, and rural housing “by improving the distribution and availability of mortgage financing in a safe and sound manner for residential properties that serve very low-, low-, and moderate-income families in these markets.”
Under DTS, each GSE must submit a three-year Underserved Markets Plan that describes the actions and objectives they will undertake to meet their Duty to Serve requirements. FHFA will evaluate their proposals. Following implementation of the plans in January 2018, FHFA will report to Congress annually on each GSE's compliance with its DTS obligations.
According to the DTS final rule, the plans for each market should include:
- For the manufactured housing market, the final rule provides eligibility for Duty to Serve credit for Enterprise activity supporting manufactured homes titled as real property, manufactured homes titled as personal property (also known as chattel), and blanket loans for certain categories of manufactured housing communities.
- For the affordable housing preservation market, the final rule provides eligibility for Duty to Serve credit for Enterprise activity supporting the preservation of affordable rental housing and affordable homeownership opportunities. These categories include Enterprise activities under the programs specified in the Safety and Soundness Act, as well as activities supporting small multifamily rental properties, energy efficiency improvements on multifamily rental and single-family first-lien properties, shared equity homeownership programs, purchase or rehabilitation of certain distressed properties, and activities under the U.S. Department of Housing and Urban Development's Choice Neighborhoods Initiative and Rental Assistance Demonstration program.
- For the rural housing market, the final rule provides eligibility for Duty to Serve credit for Enterprise activity supporting housing in high-needs rural regions and for high-needs rural populations, financing of housing by small rural financial institutions, and activities related to small multifamily rental properties in rural areas.
To encourage public participation while the Enterprises draft their Underserved Market Plans in early 2017, FHFA will co-host four public listening sessions in collaboration with Fannie Mae and Freddie Mac:
· Chicago: January 25, 2017
· San Francisco: February 1, 2017
· Washington, DC: February 8, 2017
· Online Webinar: February 9, 2017
More information about session registration is expected on Dec. 19, 2016. A NAHMAnalysis detailing the DTS rule, industry concerns, and FHFA responses is forthcoming.
To review the FHFA's Final Rule, click here, and to review the attached DTS factsheet online, click here. For additional information, please visit the FHFA's DTS program website.
(*Please note: Due to technical difficulties, this DTS final rule and fact sheet will be added to NAHMA website later this week.*)
Juliana Bilowich, Government Affairs Coordinator
National Affordable Housing Management Association
400 N. Columbus St., Suite 203, Alexandria, VA 22314
Phone 703-683-8630, ext.116 Email email@example.com, Website www.nahma.org
NAHMA is the leading voice for affordable housing management, advocating on behalf of multifamily property managers and owners whose mission is to provide quality affordable housing.