The Federal Housing Finance Agency (FHFA) recently announced its 2021 affordable housing goals for Fannie Mae and Freddie Mac. Due to the economic uncertainty related to the COVID-19 national pandemic, FHFA is announcing the benchmarks for calendar year 2021 only, and those levels will remain the same as they were for 2018-2020. The current benchmarks were set to expire on Dec. 31, 2020.
The final rule establishes both single-family and multifamily housing goals.
FHFA is also publishing an advance notice of proposed rulemaking (ANPR) seeking input on issues that FHFA may address in future housing goals rulemaking. FHFA plans to issue a proposed and final rule in 2021 that will establish housing goal benchmarks for 2022 and beyond. The ANPR provides an opportunity for the public to provide input on issues that will help ensure the housing goals benchmarks continue to effectively support affordable housing. The deadline for submitting responses to the ANPR is Feb. 28, 2021.
Single-Family Housing Goals:
Low-Income Home Purchase Goal
Benchmark Level for 2021: 24 percent
Very Low-Income Home Purchase Goal
Benchmark Level for 2021: 6 percent
Low-Income Areas Home Purchase Subgoal
Benchmark Level for 2021: 14 percent
Low-Income Refinancing Goal
Benchmark Level for 2021: 21 percent
To meet a single-family housing goal or subgoal, the percentage of mortgage purchases by Fannie Mae and Freddie Mac that meets each goal or subgoal must exceed either the benchmark level set in advance by FHFA or the market level for that year. The market level is determined retrospectively each year, based on the actual goal-qualifying share of the overall market as measured by FHFA based on Home Mortgage Disclosure Act (HMDA) data for that year.
Multifamily Housing Goals:
Benchmark Level for 2021: 315,000 units
Very Low-Income Subgoal
Benchmark Level for 2021: 60,000 units
Low-Income Small Multifamily Subgoal
Benchmark Level for 2021: 10,000 units
To meet a multifamily housing goal or subgoal, they must purchase mortgages on multifamily properties (properties with five or more units) with rental units affordable to families in each category, as well as a subgoal for properties with 5-50 units. FHFA measures their multifamily goals performance against benchmark levels set by FHFA.