Fannie and Freddie Can Each Invest Up to $1 Billion Annually in the LIHTC Market
The Federal Housing Finance Agency (FHFA) announced today that Fannie Mae and Freddie Mac (the Enterprises) will each be allowed to invest up to $1 billion annually in the Low-Income Housing Tax Credit (LIHTC) market as equity investors, beginning in 2024.
Since September 2021, each Enterprise has been limited to $850 million of investment annually in the LIHTC market. Increasing the Enterprises’ LIHTC investment cap ensures they continue to play a consistent role in supporting the creation and preservation of affordable housing.
The Enterprises will also adjust their LIHTC investment policies to ensure their investments only support projects that remain affordable for the entire 30-year period intended by the program.
Within the $1 billion investment cap, any investments by the Enterprises above $500 million in a given year must be in transactions FHFA has identified as having difficulty attracting investors. This increases the amount of investments under the cap that must support housing in Duty to Serve-designated rural areas, preserve affordable housing, support mixed-income housing, provide supportive housing, or meet other affordable housing objectives.
In addition, the Enterprises will only make LIHTC investments in projects that waive the qualified contract provision, ensuring the 30-year affordability period envisioned by the LIHTC program.
LIHTC is the primary federal government program available to address the shortage of affordable rental housing by creating and preserving affordable units in underserved areas throughout the country. FHFA will continue to evaluate the Enterprises’ participation in the LIHTC equity market on an ongoing basis.
Latest from NAHBNow
Economics
Apr 30, 2026
Fed Changes Leadership, but Powell Stays On BoardFed Chair Jerome Powell is not expected to fully step away from the Federal Reserve. Instead, he plans to continue serving as a member of the Board of Governors as long as the Justice Department's probe into the cost of the Fed’s headquarters renovations remains active.
Workforce Development
Apr 29, 2026
Indiana Students Explore Career Paths Beyond a Four-Year DegreeThe Builders Association of Elkhart County (Ind.) connects local students with hands‑on construction experiences that open their eyes to career paths beyond a four‑year degree.
Latest Economic News
Economics
Apr 30, 2026
U.S. Economy Rebounded in the First Quarter of 2026Real GDP growth accelerated in the first quarter of 2026, rebounding from a weak finish at the end of 2025, as government spending recovered following a disruptive shutdown.
Economics
Apr 29, 2026
Powell’s Chair Ends but He Keeps His Board SeatThe April meeting of the Fed’s monetary policy committee featured a lot of institutional news for a month in which the Fed kept monetary policy unchanged. The outlook for the economy and monetary policy remains unclear due to geopolitical turbulence and domestic policy uncertainty.
Economics
Apr 29, 2026
Home Building Shows Signs of Stabilization with Monthly Gain in StartsHousing construction activity strengthened in March, with a notable rebound in both single-family and multifamily starts, signaling improved builder activity despite ongoing headwinds from financing costs and affordability constraints. While the monthly gain points to renewed momentum, year-to-date trends remain mixed, particularly in the single-family sector, and permit activity suggests some caution moving forward.