The program has been extended for another year and continues to get traction.
In April 2022, Fannie Mae announced a program to offer lower financing options to housing providers who commit to accepting U.S. Department of Housing and Urban Development Housing Choice Vouchers (HCVs). Through Fannie Mae’s Expanded Housing Choice initiative (EHC) four deals in Dallas, TX and one 420-unit property in Charlotte, NC have closed.
While it is currently only active in those two states, the initiative has been extended for another year.
To be eligible, properties cannot already be required to accept HCVs through programs like the Low-Income Housing Tax Credit and they must have at least 20 percent of their unit rents that meet the applicable HUD Fair Market Rent or Small Area Fair Market Rent affordability requirements at the time of origination.
The initiative offers a 5–30-year term with fixed- and variable-rate options. The maximum loan-to-value ratio is 80 percent and the debt service coverage ratio is 1.25. More details of the program’s requirements and benefits can be found here.
For more information, please contact Fannie Mae at [email protected].