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Published July 15, 2024
Washington, D.C. | KreditSanta News –The Federal Housing Finance Agency (FHFA) has announced significant enhancements in tenant protections for multifamily properties financed through Fannie Mae and Freddie Mac. These measures, effective from February 2025 for new loan agreements, mark a milestone in promoting fairness and transparency in rental housing.
Under the new guidelines, landlords covered by these loans must provide tenants with a 30-day written notice before implementing rent increases or lease expirations. Additionally, a 5-day grace period for rent payments will be mandatory, ensuring tenants have sufficient time to meet financial obligations.
FHFA Director Sandra L. Thompson emphasized the collaborative effort behind these reforms, stating, “The tenant protections announced today reflect basic best practices to improve communication between housing providers and tenants.” Failure to comply with these requirements could result in penalties under the loan agreement.
Detailed policies outlining these protections will be released by Fannie Mae and Freddie Mac in August 2024. Tenants can verify if their property falls under Enterprise backing using respective multifamily property look-up tools.
In response to stakeholder feedback gathered through a 2023 Request for Input (RFI), FHFA continues to explore additional measures aimed at bolstering tenant protections and promoting sustainable housing practices.
For more information, visit FHFA’s official website.