On July 12, 2024, the Federal Housing Finance Agency (FHFA) sent out the following information:
(Click here to link News Release)
IMMEDIATE RELEASE
Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced a set of required tenant protections for multifamily properties financed by Fannie Mae and Freddie Mac (the Enterprises). This announcement results from FHFA’s extensive and ongoing engagement with market participants and key stakeholders on tenant issues and represents the first time that tenant protections will be a standard component of Enterprise multifamily financing.
Covered housing providers will be required to provide tenants with the following:
- 30-day written notice of a rent increase
- 30-day written notice of a lease expiration
- 5-day grace period for rent payments
“The tenant protections announced today are the culmination of a collaborative effort between FHFA, the Enterprises, tenants, and landlords to address challenges faced in rental housing today,” said Director Sandra L. Thompson. “These requirements reflect basic best practices to ensure housing providers effectively communicate with tenants and that tenants understand their rights and responsibilities under their leases.”
The Enterprises will monitor and enforce the tenant protections announced today, and failure to comply could result in penalties under the loan agreement. These protections will be required for new loans signed on or after the policy effective date, February 28, 2025. A detailed description of the tenant protection policies is expected to be published by the Enterprises in August 2024. Tenants can see if their property is Enterprise-backed using Fannie Mae
’s and Freddie Mac’s multifamily property look-up tools.
In 2023, FHFA published a Request for Input (RFI) to gather stakeholders’ perspectives and identify principles and best practices at the federal, state, and local levels that would strengthen tenant protections and increase fairness in the rental market. FHFA published a summary of the input in January 2024, which is available [here].
FHFA and the Enterprises will continue to evaluate options for codifying additional tenant protections that advance sustainable housing in a manner that reflects the needs of both tenants and housing providers.