Episode 22: Fannie Mae Doubles LIHTC Investment Cap to $2 Billion

The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to double their annual Low-Income Housing Tax Credit investment caps, creating a major new capital source for affordable housing developers. GSE LIHTC Investment Expansion: Fannie Mae: Cap increased from $1 billion to $2 billion annually Freddie Mac: Cap increased from $1 billion to $2 billion annually Total GSE LIHTC investment capacity: $4 billion per year Targeting Underserved Markets: 50% of allocations dedicated to underserved markets 20% of underserved allocation (10% of total) targeted to rural communities Addresses persistent equity gap in secondary and tertiary markets For rural developers and sponsors working outside major metros, this represents a game-changing capital source. The expanded GSE presence should also help stabilize LIHTC pricing and improve terms for developers across all markets. Subscribe to The Spring Street Brief for daily affordable housing news covering LIHTC, GSE programs, Fannie Mae, Freddie Mac, and tax credit equity markets.]]>