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
Labor | Advocacy
Apr 24, 2026
Labor Department Proposes New Joint Employer Rule for Wage and Hour EnforcementThe Department of Labor (DOL) released the text of a proposed rule that would establish a nationwide standard for determining joint liability for under the Fair Labor Standards Act, Family and Medical Leave Act, and Migrant and Seasonal Agricultural Worker Protection Act.
Advocacy
Apr 23, 2026
NAHB Applauds Lawmakers’ Push to Remove Harmful Mandate from Major Housing PackageIn a letter signed by 76 representatives, the Real Estate Caucus and the Build America Caucus called on House Speaker Mike Johnson and Minority Leader Hakeem Jeffries to remove harmful provisions in the Senate-passed 21st Century ROAD to Housing Act that mandate the forced sale of single-family build-to-rent (BTR) housing.
Latest Economic News
Economics
Apr 22, 2026
State-Level Employment Situation: February 2026February’s labor market data point to a notable pullback in employment, with job losses concentrated across a majority of states and only modest gains elsewhere. While January showed solid momentum, February’s decline reflects emerging softness in hiring conditions, alongside uneven performance across the country.
Economics
Apr 21, 2026
Population Growth and Housing Supply Dynamics at the County Level in 2025U.S. population growth slowed notably in the latest Vintage 2025 population estimates from the U.S. Census Bureau, with the nation expanding by just 0.5% in 2025, roughly half the pace of the prior year. The deceleration was primarily driven by a sharp decline in net international migration (NIM), which dropped from 2.7 million to 1.3 million, while natural change remained relatively stable.
Economics
Apr 20, 2026
Construction Workforce Shifts: Fewer Tradesmen, More White-Collar JobsThe long-running shift in the construction labor force away from construction trades and toward management, business, and technical roles is ongoing and gaining momentum, according to NAHB’s analysis of the latest 2024 data from the American Community Survey (ACS).