The Federal Housing Finance Agency (FHFA) announced enhancements to Fannie Mae and Freddie Mac’s (the Enterprises) multifamily radon standards, which will require additional radon testing for multifamily properties with loan applications received after June 30, 2023. The testing will include:
- Increasing required testing from ten percent of ground floor units to 25 percent;
- Continuing to allow an environmental professional to manage the radon testing process;
- Requiring the environmental professional or property representative to provide tenant notifications for radon testing; and
- Providing additional guidance for lenders and environmental consultants on the Enterprises’ radon standards. As part of such guidance, the Enterprises will reinforce the need for compliance with state and local radon laws.