The Federal Housing Finance Agency (FHFA) has unveiled new tenant protections for properties financed by Fannie Mae and Freddie Mac, starting February 28, 2025. These protections include a five-day grace period for rent payments, and a 30-day written notice requirement for both rent increases and lease expirations. The new rules aim to enhance transparency and stability for tenants. Detailed guidelines will be released by FHFA in August. For more information on how these changes might affect you, read more.
FHFA Announces New Tenant Protections for Multifamily Properties
The Federal Housing Finance Agency (FHFA) has announced new tenant protections that will take effect on February 28, 2025, for multifamily properties financed by Fannie Mae and Freddie Mac. This significant update aims to provide greater stability and transparency for renters living in properties backed by these government-sponsored enterprises (GSEs).
The new protections include:
- Five-Day Grace Period: Tenants will receive a minimum five-day grace period for late rent payments before any penalties are applied.
- 30-Day Notice for Rent Increases: Landlords must provide tenants with a 30-day written notice before implementing any rent increases.
- 30-Day Notice for Lease Expirations: Tenants will also receive a 30-day written notice prior to the expiration of their leases.
These changes are part of FHFA’s ongoing effort to address tenant issues and ensure that renters in GSE-financed properties have clearer and fairer terms. FHFA Director Sandra L. Thompson emphasized that these measures are intended to improve communication between landlords and tenants and reinforce tenant rights.
The GSEs will be responsible for monitoring compliance with these new requirements and will impose penalties for non-compliance. Detailed information about these protections and their implementation will be published by Fannie Mae and Freddie Mac in August.
Tenants can see if their property is Enterprise-backed using Fannie Mae’s and Freddie Mac’s multifamily property look-up tools. This will help them understand if and how these new protections apply to their rental situation.
The FHFA’s announcement follows extensive stakeholder engagement and reflects a commitment to improving rental housing stability and fairness. Additional tenant protection measures may be considered in the future as FHFA continues to evaluate housing needs.