The Federal Housing Finance Agency is proposing a change to the benchmarks by which Freddie Mac and Fannie Mae measure their multifamily goals.  A rule proposed this week would see a move from using the number to the percentage of units in multifamily properties the institutions finance.

Historically, the FHFA set numerical targets for multifamily units.  The proposed rule would instead evaluate what percentage of Fannie and Freddie's annual multifamily loan acquisitions are affordable within three different categories: a low-income goal of 61%, a very-low-income subgoal of 12% and a low-income small multifamily subgoal of 2%. The proposed rule would take effect for 2023 and 2024 benchmarks, and comments will be accepted through October 17.

"In proposing the multifamily housing goal benchmark levels for 2023 and 2024, FHFA has considered the ability of the Enterprises to lead the market in making multifamily mortgage credit available," the agency writes in a supplement to the rule. "The share of the overall multifamily mortgage origination market that is purchased by the Enterprises increased in the years immediately following the financial crisis, but their share has declined more recently in response to growing private sector participation. FHFA expects the Enterprises to continue to demonstrate leadership in multifamily affordable housing lending by providing liquidity and supporting housing for tenants at different income levels in various geographic markets and in various market segments. This support should continue throughout the economic cycle, with the Enterprises providing steady support even as the overall volume of the multifamily mortgage market fluctuates."