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FHFA Boosts LIHTC Caps for Fannie, Freddie to $1 Billion Annually

Thursday, December 21, 2023 - 1:15PM

The Federal Housing Finance Agency (FHFA) today announced that Fannie Mae and Freddie Mac will each be allowed to invest up to $1 billion annually in low-income housing tax credit (LIHTC) equity beginning in 2024. Fannie and Freddie previously had an $850 million annual cap. The new cap includes a provision that any annual investments beyond $500 million must be for transactions identified as having difficulty attracting investors. The investments will only be in LIHTC developments that have 30-year affordability periods.

The LIHTC equity market will be a focus at the Novogradac 2024 Affordable Housing Developers Conference, Jan. 18-19, 2024, in Fort Lauderdale, Florida.

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