The Federal Housing Finance Agency today issued a final rule establishing single-family affordable housing goals for Fannie Mae and Freddie Mac for the 2022-2024 period. For single-family home purchases by low-income families, FHFA set the benchmark of 28% (up from 24% previously), and a benchmark for very low-income families at 7%, up from 6% previously. The agency also raised the goal for refinances by low-income families from 21% to 26%.
Additionally, FHFA replaced the existing low-income areas subgoal with two new area-based subgoals and corresponding benchmark levels. The first of the proposed subgoals establishes a benchmark level of 10% for GSE purchases of mortgage loans on properties in minority census tracts, made to borrowers with incomes no greater than 100% of area median income. The second subgoal establishes a benchmark level of 4% for GSE purchases of mortgage loans on properties in low-income census tracts that are not minority census tracts, as well as mortgage loans on properties in low-income census tracts that are minority census tracts, made to families with incomes greater than 100% of AMI.
The final rule also established multifamily housing goals for 2022 only, including a goal of 415,000 low-income units, up from 315,000 in previous years. Fannie and Freddie will each be required to target a subgoal of 88,000 units for very low-income families (up from the 2021 benchmark of 60,000 units). The rule also establishes a subgoal for small multi-family low income at 23,000 and 17,000 units for Freddie and Fannie, respectively.