PR Newswire
WASHINGTON, Oct. 15, 2024
Previously Available in North Carolina and Texas, EHC Program Supports Property Owners and Renters in All Markets that Lack Source of Income Protections
WASHINGTON, Oct. 15, 2024 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced enhancements to its Expanded Housing Choice (EHC) initiative, including that it is now available in all jurisdictions without source of income protections, for new loans to multifamily property owners who accept U.S. Department of Housing and Urban Development (HUD) Housing Choice Vouchers (HCVs).
The Housing Choice Voucher federal program helps very-low-income families, senior citizens, and people with disabilities afford stable and quality housing in the private market. Fannie Mae's Expanded Housing Choice, which the company launched in April 2022 and has extended through April 2026, is an innovative pilot initiative created to expand housing opportunities for HCV holders by incentivizing multifamily borrowers to accept vouchers as a valid source of income. Currently in the United States, approximately 30% of voucher holders are unable to find housing that accepts their vouchers.
In addition to gaining a larger renter base, borrowers and property managers who leverage EHC and commit to accept HCVs can benefit from lower pricing, flexible loan terms, certainty of execution, lower turnover and vacancy rates, a steady stream of competitive rent payments backed by HUD, and the chance to support a more equitable housing market.
"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. We also thank our Delegated Underwriting and Servicing (DUS®) lenders for partnering with us to bring this initiative to life for those who will benefit from it," said Michele Evans, Executive Vice President and Head of Multifamily, Fannie Mae. "Many Housing Choice Voucher holders are from historically underserved communities, and bringing a program to the greater market that enables increased access to sustainable housing for renters while producing benefits for property owners is a prime example of Fannie Mae's innovation at work."
Previously limited to eligible properties in North Carolina and Texas, EHC is now available to borrowers in all U.S. jurisdictions without Source of Income protections provided their property is not already legally required to accept HCVs and that at least 40% of units are affordable at or below HUD Fair Market Rents or Small Area Fair Market Rents. The EHC initiative also has been enhanced to address customer and stakeholder feedback, including: an increased eligibility threshold, which aims to stimulate a more sustainable program; a more streamlined data collection process; and more transparency around inclusive renter screening requirements.
For more information on Fannie Mae's Expanded Housing Choice initiative, including background on the Housing Choice Voucher program, lender and borrower best practices, frequently asked questions, and more resources, please visit FannieMae.com.
About Fannie Mae
Fannie Mae advances equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America. We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible. To learn more, visit:
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SOURCE Fannie Mae
