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November 08, 2018

2019 Multifamily Lending Caps Announced

The Federal Housing Finance Agency (FHFA) recently announced the 2019 multifamily lending cap will remain at $35 billion. As in prior years, FHFA will review its estimates of the multifamily loan origination market size on a quarterly basis and may increase the caps if necessary. Loans in certain affordable and underserved markets continue to be excluded from the cap.

Freddie Mac Multifamily Green Advantage®

For 2019, FHFA made the following requirement changes for Green Up® and Green Up Plus® loans to be excluded from the multifamily cap:

  • Loans must project a minimum 30 percent reduction in whole property energy and water consumption and a minimum of 15 percent of the reduction must be in energy consumption.
  • There is a new data collection requirement for all excluded Green Up/Green Up Plus loans, which will require a third-party data collection firm.

We’re expecting additional details on these changes and will communicate them as soon as they’re available. We’ll also provide training after FHFA publishes the 2019 Scorecard.

Loans on Affordable Units in Cost-burdened Renter Markets

FHFA has implemented a data-driven approach to designate markets where units affordable to cost-burdened renters at certain area median income levels will be excluded from the multifamily cap on a pro-rata basis. This new process will help ensure that exclusions from the cap are focused on markets where renters are most cost-burdened, resulting in less variation in market designations and greater stability.

Additional details will be available in FHFA’s 2019 Scorecard.

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