Members of NMHC and NAA met with senior officials at the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac’s regulator, on July 25 to provide an update on market conditions facing the multifamily industry. We presented an analysis covering construction activity, an overview of our quarterly market survey and the status of capital markets debt sources. FHFA is working to determine whether the current $35 billion multifamily production cap should be adjusted based on assessments of the second quarter of this year.
Specifically, as part of the process outlined in the 2016 GSE Scorecard for Fannie and Freddie, FHFA uses industry input to make an assessment every quarter to determine the size of the multifamily market and whether an adjustment to the production cap is warranted. FHFA raised the production cap from $31 to $35 billion after the first quarter assessment. NMHC was also one of the sources that provided input for FHFA’s first quarter analysis.
We expect that any decision on whether to raise the cap will be made sometime in the first week of August. NMHC will closely monitor that decision and communicate it once released.