Federal National Mortgage Association (OTCMKTS: FNMA) seeks to improve its financial standing, which is why it remains open to making new investments in new areas. However, it also seeks to settle for the sort of investments that help enhance lives. Therefore, it has decided to increase its investment amount into the low-income housing tax credit (LIHTC) activities.
Supporting underserved markets
It hopes the move will lead to more affordable housing in most of the underserved markets. It needed approval from the Federal Housing Finance Agency (FHFA), and it can continue with its moves after the body gave the nod to the new arrangement. It increases the investment from the initial $500 million annual cap to about $850 million annually.
Analysts applaud the company’s move to boost its annual investment activities, outlining that it is a remarkable way to support the development of more affordable housing for the less privileged. However, they believe that there are still many markets that need support and encourage Fannie Mae to continue with its progressive activities.
Evans speaks out
Fannie Mae has managed to accomplish quite a lot since its return to the LIHTC market. For example, the $1.8 billion it injected into supporting the development and the creation of thousands of affordable units will help serve most community members in the United States. In addition, the increased cap makes it possible for Fannie Mae to continue upholding its dedication to offering the much-needed support to the establishment of quality affordable housing that the nation’s renters need.
The Executive Vice President and Head of Multifamily for Fannie Mae Michele Evans opines, “LIHTC investments are one of the most impactful tools we use to create and preserve affordable housing in underserved markets. Increasing the annual cap allows us to better address the affordable housing supply shortage for low- and very low-income families. Since our return to the LIHTC market in 2018, we have been able to better serve the multifamily market and play an integral role in addressing our nation’s affordable housing crisis.”