§4563 Multifamily Special Affordable Housing Goal

Summary

The Director must set one yearly goal, by number of units or by dollar amount, for each enterprise to buy mortgages on apartment buildings that fund units affordable to low-income families. The Director must also add tougher requirements for units for very low-income families. Each enterprise must report on smaller multifamily projects (about 5 to 50 units, or mortgages up to $5,000,000, numbers the Director can change), and the Director can make extra rules about those. The Director will leave out market parts that would hurt safety or are off-limits. When setting the goal, the Director must consider the nation’s need for multifamily mortgage credit, the enterprise’s past performance, market size (including small projects), the enterprise’s ability to lead the market, public subsidies, and the enterprise’s financial health. The Director will give full credit toward the goal for qualifying units financed by state or local housing agency bonds if the bonds are guaranteed by or bought by the enterprise, though credit may be reduced for some investment-grade bond purchases that do not create new liquidity. The Director must watch each enterprise’s performance and judge compliance each year. Rents count as affordable if they do not exceed 30 percent of the maximum income level for the income group, adjusted for the number of bedrooms.