Fannie Mae re-enters Low-Income Housing Tax Credit market
On November 16, Fannie Mae resumed Low-Income Housing Tax Credit (LIHTC) activities. The LIHTC program encourages the investment of private equity for developing affordable rental housing for low-income and very-low households.
“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,” says Jeffery Hayward, Executive Vice President, Multifamily.
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.
“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,” notes Hayward.
Immediate and Ongoing Support
The LIHTC program 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 rental housing.
“Our goal is to support the production and preservation of affordable rental housing when and where those needs are not being adequately met,” says Hayward.
Partnering for Success
As in the past, Fannie Mae will partner with best-in-class syndicators, both national and regional, nonprofits and for-profits. “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,” says Dana Brown, Director of Multifamily Customer Engagement and program lead for Fannie Mae’s LIHTC investment activities.
“Our LIHTC program investments will be conducted in a safe and sound manner and in alignment with other Fannie Mae business activities that support multifamily affordable housing,” Brown says.
“We are ready to hit the ground running.”
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