FHFA doubles LIHTC investment caps for GSEs; NAR voices support

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FHFA doubles LIHTC investment caps for GSEs; NAR voices support

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Kevin Sears President | Official website

The Federal Housing Finance Agency (FHFA) has announced an increase in the annual investment caps for government-sponsored enterprises (GSEs) in the Low-Income Housing Tax Credit (LIHTC) program. The new limit raises the cap from $1 billion to $2 billion per GSE each year. GSEs play a significant role as investors in LIHTC bonds, which provide necessary funding for developers to construct and renovate properties for low- and moderate-income residents.

Shannon McGahn, Executive Vice President and Chief Advocacy Officer of the National Association of Realtors (NAR), commented on the decision: "We thank Director Pulte and his team for taking action to expand the supply of housing and break down barriers to homeownership. These are important efforts that we have long supported. Doubling the contributions to the development of LIHTC properties provides incentives to investors to support housing development, while the developer gets access to critical capital for construction," said McGahn. "This is an important step to ease cost burdens in low-and moderate-income areas and we appreciate the Director's leadership role in this market."

The NAR is engaged with both residential and commercial real estate sectors. It identifies members as Realtors who adhere to a code of ethics. The organization also offers consumer guides related to buying, selling, written agreements, and negotiating compensation at facts.realtor.

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