§4563 Multifamily Special Affordable Housing Goal

Summary

The Director must set one yearly target, by units or by dollars, for each enterprise to buy mortgages on multifamily housing that serve low-income families. The Director must also set extra requirements for mortgages that help very low-income families. Each enterprise must report purchases of smaller projects, which may be defined as 5 to 50 units or mortgages up to $5,000,000 (the Director can change those limits). When making the target, the Director will ignore market parts that would be unsafe or not allowed and will consider national demand, the enterprise’s past work and ability to add liquidity and stability, market size (including small projects), public subsidies, and the need to keep the enterprise financially sound. The Director must give full credit toward the target for qualifying units financed with state or local housing finance agency bonds if those bonds are guaranteed by or bought by an enterprise, though less credit may be allowed for buying investment‑grade bonds that do not add a new market or liquidity. The Director will watch performance each year and judge compliance based on whether rents are affordable. Rents count as affordable if they do not exceed 30 percent of the maximum income for the income group, with adjustments for number of bedrooms.