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FHFA Increases LIHTC Caps for Fannie and Freddie
The Federal Housing Finance Agency (FHFA) has increased the annual cap on Low Income Housing Tax Credit (LIHTC) investments from $500 million apiece for Fannie Mae and Freddie Mac to $850 million each. The $500-million annual cap had been in place since Fannie re-entered the LIHTC market in 2017, followed by Freddie a year later.
Within this $850-million annual funding cap for each of the GSEs, any investments above $425 million in a given year are required to be in areas that have been identified by FHFA as markets that have difficulty attracting investors.
“Increasing the amount each Enterprise can invest in the LIHTC market, especially in areas that have difficulty attracting investors, will help expand the supply of affordable housing across the country,” said FHFA Acting Director Sandra L. Thompson.
Following FHFA’s announcement, both GSEs said they would be stepping up their investments in LIHTC.
- ◦Financing
- ◦Policy/Gov't
