The Federal Housing Finance Agency announced Thursday that it will lower multi-family loan limits for each of the two government-sponsored companies by $3 billion next year.
The agency could increase the limit to account for changes in market conditions if warranted next year. He promised to avoid disrupting the market by lowering the caps further.
In addition to lowering the annual ceiling, which had been increased by $8 billion For 2022, the agency is adding a new workforce housing category to its ongoing requirement that 50% of loan purchases be considered “mission-driven” affordable housing.
Loans in the workforce housing category “will provide an incentive for conventional borrowers to keep rents at affordable levels for long periods of time,” Sandra Thompson, FHFA Director said in a statement.
The amount of credit lenders will get from these loans will depend on the share of units on which landlords limit rent increases for at least 10 years.
At least 50% of the units in a project will need to protect affordability in this way to achieve full credit. If the number of rent-restricted units in a project is less than 50%, lenders will get half the credit.
Multi-family mortgage lenders will also have a bit more leeway with area median income limits for loans that finance energy or water efficiency next year. The AMI limit will increase from 60% to 80% to encourage these efficiencies in workforce housing.