Property owners are encouraged to accept housing vouchers in areas without source of income protections
Fannie Mae has boosted its Expanded Housing Choice (EHC) initiative, extending it to all US markets where there are no legal protections for renters who use housing vouchers as a source of income.
This move is part of the company’s ongoing effort to encourage more property owners to accept Housing Choice Vouchers (HCVs) from low-income renters, including families, seniors, and people with disabilities.
The federal Housing Choice Voucher program helps individuals afford stable housing in the private market. However, about 30% of voucher holders struggle to find property owners willing to accept the vouchers as a valid source of income.
Fannie Mae aims to change that dynamic by offering financial incentives through the EHC initiative. Initially launched in 2022, the program was previously available only in select areas in North Carolina and Texas.
The expansion means property owners across the country can now participate, as long as their properties are in jurisdictions without income protection laws and are not already required to accept vouchers. The properties must also meet affordability standards, with at least 40% of their units priced at or below HUD’s fair market rents or small area fair market rents.
Property owners who opt into the EHC initiative can benefit in several ways, including lower loan pricing, flexible loan terms, and a steady flow of rent payments backed by the Department of Housing and Urban Development (HUD). Additionally, they may experience lower vacancy and turnover rates, which can translate into more stable financial returns.
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Michele Evans, head of multifamily at Fannie Mae, said the expansion aims to improve housing opportunities for voucher holders while also offering financial benefits to property owners.
“Many Housing Choice Voucher holders are from historically underserved communities, and bringing a program to the greater market that enables increased access to sustainable housing for renters while producing benefits for property owners is a prime example of Fannie Mae’s innovation at work,” Evans said in the company’s media release.
The changes come as Fannie Mae seeks to make the program more efficient and accessible for property owners. The enhancements include simplified data collection processes and clearer guidelines around renter screening, aiming to address previous customer concerns and make the initiative more sustainable.
The expanded initiative could have a significant impact on markets where voucher holders have struggled to find housing. By providing property owners with incentives to participate, the program is designed to boost acceptance of housing vouchers, potentially improving access to housing for renters from underserved communities.
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