What Treasury, HUD Housing Finance Reform Plans Could Mean for Affordable Multifamily Housing

The Trump Administration’s Sept. 5 plan for housing finance reform is really two reports–one from the Treasury Department and one from the U.S. Department of Housing and Urban Development (HUD)–and covers two pathways–one legislative and one administrative.

Here’s what they might mean for affordable multifamily housing.

In general, the plan reaffirms two pillars of the current housing finance system. First, unlike previous proposals, the Trump plan would keep Fannie Mae and Freddie Mac at the heart of the system rather than replace them with new government sponsored enterprises (GSEs). Although the plan does call for a greater role for private competitors, that would mostly come from scaling back the GSEs’ footprint. Other entities could apply for GSE charters, but the plan does not depend on their stepping forward. In any case, only Congress could allow for new GSE charters.