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GSEs Will Implement New Multifamily Lease Standards in February 2025
Fannie Mae and Freddie Mac have published overviews of their policy frameworks to require minimum lease standards at multifamily properties with new enterprise-backed loans. Announced by the Federal Housing Finance Agency in July, the lease standards will apply to new loans under application beginning Feb. 28, 2025.
The minimum standards include the following:
- 30-Day Notice of Rent Increases: Renters will receive written notice of a rent increase at least 30 calendar days prior to the increase.
- 30-Day Notice of Lease Expiration: Renters will receive written notice of the scheduled expiration of the residential lease at least 30 calendar days prior to said expiration.
- Five-Day Grace Period for Late Rent Payments: Renters will receive a minimum five calendar day period from the rent due date before late fees or other penalties can be charged.
“These lease standards seek to extend the reach of common baseline tenant protections,” said Kevin Palmer, head of multifamily for Freddie Mac. “Although many borrowers already exceed these minimum standards, all will be required to meet the standards to obtain GSE financing in the future.”
- ◦Policy/Gov't
