FHFA approves raising the GSC’s investment cap to $850 million
Fannie Mae has announced that it has increased its capital for investment in low-income housing tax credit (LIHTC) activities.
The Federal Housing Finance Agency (FHFA) approved the increase to $850 million annually – up from a $500 million annual cap set in 2017 when the agency approved Fannie Mae’s return to the LIHTC market.
In a statement, the government-sponsored corporation (GSC) said that the investment is part of its ongoing effort to “provide a reliable source of capital for affordable rental housing, especially in underserved markets.”
“LIHTC investments are one of the most impactful tools we use to create and preserve affordable housing in underserved markets. Increasing the annual cap allows us to better address the affordable housing supply shortage for low- and very low-income families,” said Michele Evans, executive vice president and head of multifamily at Fannie Mae. “Since our return to the LIHTC market in 2018, we have been able to better serve the multifamily market and play an integral role in addressing our nation’s affordable housing crisis.”
“FHFA’s increase in the cap allows us to continue to play a leadership role in supporting underserved markets and projects, including rural, supportive housing developments, and disaster impacted areas,” said Dana Brown, vice president, multifamily at Fannie Mae. “We are a steady and reliable presence in the LIHTC equity market. This consistent support was evident over the past year when pandemic-related factors disrupted many markets and economic activities. Throughout this challenging period, Fannie Mae continued its steady pace of LIHTC investments month after month, assuring our LIHTC market partners that we planned to continue to invest throughout 2020 and beyond.”
