Federal News
FHFA Expands Affordable Housing Investment
March 25, 2026
The Federal Housing Finance Agency (FHFA) has increased the annual investment capacity of Fannie Mae and Freddie Mac in Low Income Housing Tax Credit (LIHTC) properties from $1 billion to $2 billion each, effectively doubling the total to $4 billion annually. This expansion supports the development of affordable housing, with a particular focus on rural and underserved communities, in alignment with the objectives of the One Big Beautiful Bill. This action signals enhanced federal support for affordable housing finance and creates increased opportunities for developers and contractors specializing in LIHTC projects.
- Why this matters: Procurement professionals and contractors in affordable housing development should anticipate increased funding availability and project volume, especially in rural and underserved areas.
- The expanded investment capacity of Fannie Mae and Freddie Mac indicates a strategic federal emphasis on addressing housing shortages through LIHTC financing.
- Organizations involved in affordable housing construction, financing, and related services can leverage this increased funding to pursue new contracts and partnerships.
- Stakeholders should engage with FHFA and the government-sponsored enterprises to align project proposals with the expanded investment priorities and compliance requirements.
Agencies
Federal Housing Finance Agency, Federal Home Loan Banks
Vendors
Fannie Mae, Freddie Mac