Fannie Mae announced on April 4 the launch of its Expanded Housing Choice initiative, a yearlong program offering lower financing costs to multifamily property holders that accept Housing Choice Vouchers (HCVs). Created in partnership with Enterprise Community Partners, the pilot program will run for 12 months in North Carolina and Texas, with the possibility of expansion after feedback from customers, stakeholders, and participants is taken into account. Participating Fannie Mae lenders and borrowers will also receive resources to help them understand the HCV program and its potential benefits.
The initiative was introduced in response to low leasing rates among HCV recipients. Despite HCVs providing a guaranteed stream of income, property owners are sometimes reluctant to lease to voucher holders and – in the absence of laws prohibiting source-of-income discrimination – have no obligation to do so. Households that receive an HCV have a minimum of 60 days to find a unit to rent whose owner or manager will accept their voucher, and while some Public Housing Authorities issue extensions, failure to “lease up” too often results in termination of voucher services.
“Housing Choice Vouchers provide assistance to a wide range of individuals and families in need,” said Hugh Frater, chief executive officer of Fannie Mae. “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.”
Read Fannie Mae’s press release here.