Fannie Mae has partnered with Raymond James Tax Credit Funds for a $100 million offering, the GSE’s first investment in LIHTCs since entering conservatorship. While initially hesitant regarding the development, industry players mostly welcome participation from GSEs, who bring stability to a marketplace that saw pricing volatility from tax reform.
FHFA made the announcement back in November that Fannie Mae and Freddie Mac would reenter the LIHTC market in a limited role, a result of the Enterprise Duty to Serve Underserved Markets rule published in 2016. The rule requires Fannie and Freddie to serve three underserved markets: Manufactured Housing, Rural Housing, and Preservation of Affordable Housing. FHFA determined through the rule that the Enterprises would be allowed to resume LIHTC investment, but only in these underserved areas.