The Federal Housing Finance Agency announced an expansion of affordable housing support by doubling the amount Fannie Mae and Freddie Mac can invest in Low Income Housing Tax Credit (LIHTC) properties from USD 1 billion to USD 2 billion each, lifting combined capacity to USD 4 billion per year. Under the revised allocation, half of the annual LIHTC investment capacity will be reserved for difficult-to-serve LIHTC markets, with at least 20% of that reserved portion directed to Duty to Serve Rural Communities. The announcement is framed as consistent with President Trump’s One Big Beautiful Bill, which it says enhances LIHTCs.
Federal Housing Finance Agency 2025-08-05
Federal Housing Finance Agency doubles Fannie Mae and Freddie Mac annual Low Income Housing Tax Credit investment cap to USD 2 billion each
The Federal Housing Finance Agency has doubled Fannie Mae and Freddie Mac's investment capacity in Low Income Housing Tax Credit (LIHTC) properties to USD 2 billion each, raising the combined annual capacity to USD 4 billion. Half is allocated to difficult-to-serve LIHTC markets, with at least 20% directed to Duty to Serve Rural Communities. This expansion aligns with President Trump's One Big Beautiful Bill, which aims to enhance LIHTCs.