Because of the economic uncertainty related to the ongoing pandemic, the Federal Housing Finance Agency (FHFA) proposed its 2021 housing goals to remain at the levels which they were for 2018-2020.
The proposal would establish housing goals for single-family and multifamily housing.
In a release, FHFA stated that to meet a single-family housing goal or subgoal, the percentage of mortgage purchases by Fannie Mae or 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 data for that year.
To meet a multifamily housing goal or subgoal, Fannie Mae and Freddie Mac 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 multifamily goals performance against benchmark levels set by FHFA.
On the single-family side, the proposed benchmark levels for 2021 remain 24 percent for low-income home purchases, 6 percent for very low-income home purchases, 14 percent for low-income areas home purchases and 21 percent for low-income refinances.
On the multifamily side, proposed benchmarks remain 315,000 low-income units, 60,000 very low-income units and 10,000 low-income small multifamily units.
Comments will be taken for 60 days from publication in the Federal Register. Comments should be submitted to the Federal Housing Finance Agency, Division of Housing Mission and Goals, 400 7th Street, S.W., Washington, DC 20219 or via FHFA.gov.