FHFA Announces Multifamily Tenant Protections

The Federal Housing Finance Agency (FHFA) recently announced that tenant protections will be included in new multifamily loan agreements beginning in February 2025. The tenant protections will be required for all multifamily properties financed by the federal enterprises known as Fannie Mae and Freddie Mac (the GSEs). The announcement marks a new era of tenant protections in federally backed multifamily housing.

One level deeper: Covered housing providers will be required to provide tenants with the following:

• 30-day written notice of a rent increase
• 30-day written notice of a lease expiration
• 5-day grace period for rent payments

The GSEs will monitor and enforce these tenant protections and failure to comply could result in penalties under the loan agreement. These protections will be required for new loans signed on or after the policy effective date, Feb. 28, 2025.

In announcing the tenant protections, FHFA Director Sandra Thompson stated, “The tenant protections announced today are the culmination of a collaborative effort between FHFA, the Enterprises, tenants, and landlords to address challenges faced in rental housing today. She added, “These requirements reflect basic best practices to ensure housing providers effectively communicate with tenants and that tenants understand their rights and responsibilities under their leases.”

What’s next: The GSEs will publish a detailed description of the tenant protection policies in August. FHFA’s new policies resulted from its engagement with stakeholders, including responses to a request for input published in 2023. FHFA says it will consider additional tenant protections in the future.