On August 28, Fannie Mae and Freddie Mac (GSEs) each published a multifamily tenant protection policy framework to require minimum lease standards at multifamily properties financed by new enterprise-backed loans. Introduced by the FHFA in July, the policies will take effect in February 2025 and will include (i) a five-day grace period for rent payments, (ii) a 30-day notice for rent increases, and (iii) a 30-day notice of lease expirations.
According to Freddie Mac’s announcement, the GSEs collaborated with the FHFA to review state landlord-tenant laws and engaged stakeholders to identify best practices. Findings from Freddie Mac’s National Survey of Tenant Protections were also considered. Additionally, the GSEs published FAQs related to the standards and an initial policy grid or policy framework that outlined their policy, applicability, updates to loan documents, implementation requirements for borrowers, and monitoring and enforcement details.
