FHFA made the announcement on November 16 that Fannie Mae and Freddie Mac are reentering the LIHTC market as equity investors in a limited role, effective immediately. The Enterprises are limited to a yearly investment amount of $500 million each, which amounts to less than a 5% market share for each.
The investment activity is designed to provide a countercyclical, or stabilizing role for the market. Furthermore, the majority of investments will support underserved markets and complement Duty to Serve requirements (which outline manufactured housing, affordable housing preservation, and rural housing as three prioritized underserved markets).
