In July, the Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac will be implementing new lease standards for multifamily properties with loans backed by these enterprises. These standards will go into effect on February 28, 2025 for all new loan applications.
The minimum requirements include:
– A written notice of rent increase must be given to tenants at least 30 days before the increase takes effect.
– Tenants must receive a written notice of their lease expiration date at least 30 days in advance.
– Renters have a grace period of five calendar days after the due date before late fees or penalties can be charged.
According to Kevin Palmer, head of multifamily for Freddie Mac, these standards aim to expand basic tenant protections. While many borrowers already meet or exceed these requirements, they will now become mandatory in order to obtain GSE financing in the future. This move is part of an effort by Fannie Mae and Freddie Mac to ensure fair treatment and transparency for renters across all their supported properties.
