SAHF Joins Industry Partners on Letter to FHFA Proposing Discouragement of Use of Qualified Contract Loophole
August 16, 2023
SAHF joins industry partners on a letter to Federal Housing Finance Agency (FHFA) Director Thompson urging the FHFA to adopt new policies to require that Government Sponsored Enterprises – including Fannie Mae, Freddie Mac and the Federal Home Loan Bank System -- not provide financing for properties that could or did take advantage of a loophole to prematurely end affordability requirements in the Low-Income Housing Tax Credit program. This loophole, known at the Qualified Contract provision, is resulting in the loss of approximately 10,000 affordable housing apartments annually. Addressing this problem is important to protecting tenants in GSE-financed properties.