New Annual LIHTC Investment Cap Raised to $850 Million from $500 Million, Effective Immediately
WASHINGTON, Sept. 1, 2021
WASHINGTON, Sept. 1, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) announced today it has increased its capital for investment in low-income housing tax credit (LIHTC) activities as part of its ongoing effort to provide a reliable source of capital for affordable rental housing, especially in underserved markets. The Federal Housing Finance Agency (FHFA) approved the increase, effective immediately, up to $850 million annually, up from a $500 million annual cap set in 2017 when FHFA approved Fannie Mae's return to the LIHTC market.
The increase in Fannie Mae's annual investment activities builds on the company's efforts to increase and improve affordable housing stock and help markets most in need of support, complementing Fannie Mae's affordable housing mission. Since its return to the LIHTC market, Fannie Mae's $1.8 billion worth of commitments have supported the creation and preservation of thousands of affordable units. The LIHTC program accounts for a majority of all affordable rental housing created and preserved in the United States. The increase in the cap allows Fannie Mae to maintain its commitment to supporting the growing needs for quality affordable housing for the nation's renters.
"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, 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, 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."
Some notable LIHTC investments made through June 30, 2021, include the following properties:
- Talbot Court (Greensboro, NC) will provide 56 units, of which six are designated for disabled or homeless residents. Twenty-five percent of this property's units will be restricted to residents who earn 30% of the area median income (AMI).
- Wellington North (Clarkson, NY) will provide 50 units for senior residents with eight designated for disabled tenants. More than a third of this property's units will be offered to residents who earn 30% of the AMI or less.
- Apache Manor & Sandy Park Apartments (Tulsa, OK) will facilitate Rental Assistance Demonstration conversion of 318 public housing units in two properties. The Housing Authority of the City of Tulsa will provide supportive services to all residents.
- Beachwinds Apartments (Narragansett, RI) will offer 104 units for senior and disabled residents with supportive services.
For more information about Fannie Mae's Low-Income Housing Tax Credit program, visit Fannie Mae's website .
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