The Federal Housing Finance Agency (FHFA) has announced that Fannie Mae and Freddie Mac will be allowed to double their annual investments in the Low-Income Housing Tax Credit (LIHTC) program, raising the cap from $1 billion to $2 billion. This move is intended to support the construction and rehabilitation of affordable rental housing across the United States.
Buddy Hughes, chairman of the National Association of Home Builders (NAHB), responded positively to this decision. “NAHB applauds President Trump and FHFA Director Pulte for taking action that will allow builders to construct and rehabilitate badly needed rental housing by allowing Fannie Mae and Freddie Mac to double their annual LIHTC investment cap from $1 billion to $2 billion annually. This is a concrete step toward solving the nation’s housing affordability crisis. The additional LIHTC investments by Fannie Mae and Freddie Mac will ensure developers have access to the financial resources to deliver affordable rental homes to the millions of Americans who are rent burdened.”
The LIHTC program plays a significant role in financing affordable housing projects, providing incentives for private investment in low-income rental properties.
