2017 Plan Development Process and Status November 29, 2017 DUTY TO - - PowerPoint PPT Presentation

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2017 plan development process and status
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2017 Plan Development Process and Status November 29, 2017 DUTY TO - - PowerPoint PPT Presentation

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Solutions for Affordable Housing Duty to Serve 2017 Plan Development Process and Status November 29, 2017 DUTY TO SERVE: OVERVIEW Under the Housing and Economic Recovery Act of 2008, Fannie Mae and Freddie Mac have a Duty to Serve

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November 29, 2017

Solutions for Affordable Housing

Duty to Serve – 2017 Plan Development Process and Status

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DUTY TO SERVE: OVERVIEW

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  • Under the Housing and Economic Recovery Act of 2008, Fannie Mae and

Freddie Mac have a Duty to Serve three underserved markets – manufactured housing, affordable housing preservation, and rural housing – in a safe and sound manner for residential properties that serve very low-, low-, and moderate-income families.

  • After issuing a proposed rule in December 2015, FHFA issued a final rule on

December 13, 2016 to implement the Duty to Serve requirements.

  • FHFA’s final rule requires the Enterprises to develop three-year Underserved

Markets Plans.

  • On May 8, 2017, FHFA requested public input on the Enterprises proposed
  • Plans. The public had 60 days to provide their input on the proposals, until

July 10, 2017.

  • Each Enterprise will update their Underserved Markets Plans after reviewing

public input and FHFA feedback. These are due September 24.

D U T Y T O S E R V E

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PROGRAM OVERVIEW

3 D U T Y T O S E R V E

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DUTY TO SERVE: IMPLEMENTATION TIMELINE

4 D U T Y T O S E R V E

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SUMMARY STATISTICS ON PUBLIC INPUT

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5 10 15 20 25 30 Other Think Tank Commercial Enterprise Government Lender-Servicer (for profit) Individual Trade Association Non-Profit Policy Advocacy Group

Number of Commenters

D U T Y T O S E R V E

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PUBLIC INPUT HIGHLIGHTS

Manufactured Housing

  • Enhance chattel pilots: 1) Pursue flow

loan purchases; and 2) Provide additional detail about pilots

  • Utilize CDFIs to finance MHCs
  • Propose more ambitious loan

purchase targets Affordable Housing Preservation

  • Adopt more ambitious loan purchase

targets for legacy housing programs (Section 8, LIHTC, Section 515)

  • Expedite pilot launches and product

changes in Year 1

  • Provide more specificity describing

new product features being tested

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Rural Housing

  • Resume LIHTC equity investments in

rural areas

  • Strengthen loan purchase targets and

begin loan purchases sooner

  • Partner with mission-driven
  • rganizations, local nonprofits, and

community-based organizations

D U T Y T O S E R V E

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PROPOSED PLANS REVIEW PROCESS OVERVIEW

D U T Y T O S E R V E 7

Recommendation for feedback (informal and formal)

Public Input FHFA DTS Staff review process Targeted data analytics on each market

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8/17/17 FHFA provides formal feedback to Enterprises on their proposed Plans 9/24/2017 Enterprises submit revised Plans 11/3/2017 Enterprises submit final versions of their Plans 12/15/2017 Target date for FHFA to issue Non- Objection decisions to each Enterprise 1/1/2018 Plans go into effect if FHFA issues Non- Objection decisions

D U T Y T O S E R V E

FALL TIMELINE: FORMAL FEEDBACK – NON-OBJECTION

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D U T Y T O S E R V E 9

Thank you!

Jim Gray Manager, Duty to Serve Program Federal Housing Finance Agency Jim.Gray@fhfa.gov 202-649-3124

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November 29, 2017

Solutions for Affordable Housing

Duty to Serve – 2017 Plan Development Process and Status