The Expanded Housing Choice initiative extends to borrowers in eligible jurisdictions nationwide.
Fannie Mae Expands Initiative to Increase Housing Access for Voucher Holders
Fannie Mae is bolstering its initiative that provides incentives for new loans to multifamily property owners who accept Department of Housing and Urban Development (HUD) Housing Choice Vouchers (HCVs).
Launched in April 2022 and extended through April 2026, the Expanded Housing Choice (EHC) initiative was created to expand opportunities for HCV holders by incentivizing borrowers who accept the vouchers as a valid source of income. According to Fannie Mae, approximately 30% of voucher holders are unable to find housing that will accept their vouchers.
The initiative was previously limited to eligible properties in North Carolina and Texas, but it is now available to borrowers in jurisdictions across the nation without source of income protections provided the property is not already legally required to accept the vouchers and that at least 40% of the units are affordable at or below HUD’s Fair Market Rents.
Michele Evans, executive vice president and head of multifamily at Fannie Mae, noted that many HCV holders are from historically underserved communities, and this initiative is a win-win. By bringing this program to the larger market, it increases access to sustainable housing for renters while producing benefits for property owners.
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The benefits to borrowers include gaining a larger renter base and getting lower pricing, flexible loan terms, certainty of execution, lower turnover, and a steady stream of competitive rent payments backed by HUD, noted Fannie Mae.
“Finding and creating opportunities that promote a more affordable and fair housing market while maintaining safety and soundness is at the core of our mission, so we are happy to extend the reach of our Expanded Housing Choice initiative to all eligible jurisdictions and properties,” Evans added. “We also thank our Delegated Underwriting and Servicing lenders for partnering with us to bring this initiative to life for those who will benefit from it.”
In addition to the nationwide expansion, the initiative also has been enhanced to address customer and stakeholder feedback from the pilot, including an increased eligibility threshold, a more streamlined data collection process, and more transparency around inclusive renter screening requirements.
Source: Multifamily Executive
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