In July, the Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac will be implementing new lease standards for multifamily properties with enterprise-backed loans. These standards will go into effect on Feb. 28, 2025 for all new loan applications.
The minimum requirements include:
– A written notice of any rent increase at least 30 days before it takes effect
– A written notice of the lease expiration at least 30 days before its scheduled end date
– A grace period of five calendar days after the rent due date before late fees or penalties can be charged
According to Kevin Palmer, head of multifamily for Freddie Mac, these standards aim to provide basic protections for tenants. While many borrowers already exceed these requirements, they will now be mandatory in order to obtain GSE financing in the future.
