Fannie Mae announced its Expanded Housing Choice initiative, which provides a new pricing incentive for Texas and Carolina multifamily property owners who accepts U.S. Department of Housing and Urban Development (HUD) Housing Choice Vouchers. These Housing Choice Vouchers help provide housing for very low-income families, seniors, historically underserved populations and people with disabilities.
"As we fulfill our mission, we are working with the housing community to expand access to affordable housing for those who need it most," Hugh R. Frater, CEO of Fannie Mae said. "Housing Choice Vouchers provide assistance to a wide range of individuals and families in need. But many voucher holders – especially people of color – are unable to use their vouchers before they expire or end up living in areas of concentrated poverty. Our Expanded Housing Choice initiative is a way to drive greater acceptance of vouchers in the multifamily market and, with that, greater equity and opportunity."
Expanded Housing Choice aims to make the rental housing market more inclusive and equitable by expanding the availability of multifamily units that accept housing choice vouchers. This 12 month initiative will start in Texas and North Carolina and incorporate feedback from customers, key stakeholders, and market participants.
As part of the initiative, Fannie Mae has partnered with Enterprise Community Partners to provide resources that help lenders and borrowers understand and get the most out of HUD’s Housing Choice Voucher program. Fannie Mae supports the preservation and creation of affordable housing for underserved communities as part of its ongoing mission to ensure that everyone in the United States has access to a home.
“We are constantly working to create innovative solutions for promoting sustainable affordable housing and benefitting renters,” Michele Evans, executive vice president and head of multifamily, Fannie Mae, said. “Our Expanded Housing Choice initiative can help expand housing access for people who use vouchers; build strong, vibrant resident communities; and support steady income streams for property owners.”
The Expanded Housing Choice program will be executed through Fannie Mae’s Multifamily Delegated Underwriting and Servicing (DUS) platform. Fannie Mae’s Multifamily business relies on DUS to finance quality, sustainable, and affordable rental housing. DUS leverages private capital, aligns interests through risk-sharing, and supports life-of-loan servicing. The strength of the DUS model, according to Fannie Mae, is shared risk.
