Freddie Mac and Fannie Mae Introduce New Tenant Protection Policies for Multifamily L

[Sanjeev Advani]

Starting March 2025, Freddie Mac and Fannie Mae will enforce new lease standards for multifamily properties seeking financing, aiming to bolster tenant protections. These standards include a mandatory five-day grace period for rent payments, a 30-day notice for rent increases, and a 30-day notice for lease expirations.

Borrowers must incorporate these standards within six months of closing a loan, and full compliance is required within 24 months. Non-compliance will result in penalties, including potential default. While certain properties, like manufactured housing and senior housing, are exempt, most new loans will fall under these requirements.

Developed in collaboration with the Federal Housing Finance Agency (FHFA), these policies are designed to enhance transparency and communication between landlords and tenants. This move underscores Freddie Mac and Fannie Mae's ongoing commitment to affordable housing and tenant rights.

[Charles Carillo]

@Sanjeev Advani

More strings are attached to these agency loans. Similar to COVID, when it was difficult or not possible to evict tenants if you had one of these mortgages. It makes bank financing look more and more favorable.