Return to LIHTC Market Adds Reliable Source of Capital for Affordable Rental Housing
WASHINGTON, Nov. 16, 2017 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) today announced that it will resume low-income housing tax credit (LIHTC) activities to provide a reliable source of capital for affordable rental housing and underserved markets. The Federal Housing Finance Agency (FHFA) approved Fannie Mae's re-entry into the LIHTC market as an equity investor effective immediately. Fannie Mae's return to the LIHTC market will expand the company's efforts to increase and improve affordable housing stock and help those markets most in need of support.
Fannie Mae's deep experience, long history, strong leadership, and partnership approach in the LIHTC market positions the company to provide immediate and ongoing support for the production and preservation of affordable rental housing. Since its inception, the LIHTC program has built nearly 3 million apartment units, housing about 6.7 million low-income families, and currently finances the construction and rehabilitation of almost all subsidized housing in the U.S. Approximately 90,000 apartment units are built each year using LIHTC, enabling thousands of Americans to find affordable housing.
"We are thrilled to announce our re-entry into the LIHTC market. The LIHTC program has long been the most effective tool at driving housing supply for low- and very low-income families. Fannie Mae's renewed participation in these business activities will support the LIHTC market by providing a reliable source of capital and a stabilizing influence on affordable housing throughout diverse economic markets and cycles," said Jeffery Hayward, Executive Vice President, Multifamily. "This is a significant step forward for Fannie Mae to better serve the multifamily market and play an integral role in addressing America's affordable housing crisis."
"We look forward to expanding the productive relationships we have with key partners in the LIHTC industry and enhancing our product line to offer equity financing solutions to support the ongoing needs of the market," said Dana Brown, Director of Multifamily Customer Engagement and program lead for Fannie Mae LIHTC investment activities. "We are ready to hit the ground running and we look forward to expanding our relationships and forming new partnerships."
For more information about Fannie Mae's Low-Income Housing Tax Credit program, visit our website.
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/fanniemae.