On August 5, 2025, Director Bill Pulte of the U.S. Federal Housing Finance Agency (FHFA) announced a substantial increase in the Low-Income Housing Tax Credit (LIHTC) caps for Fannie Mae Multifamily and Freddie Mac Multifamily, raising it from $1 billion to $2 billion each, a total of $4 billion per year. This decisive action aligns with the core pillars of the Government-Sponsored Enterprises (GSEs) mandate—ensuring liquidity, stability, and affordability in the nation’s housing market.
By doubling the capacity for LIHTC investments, Director Pulte aims to significantly boost the housing supply, resulting in thousands of new affordable rental units across the country. This strategic initiative promises to address the pressing housing needs of communities nationwide, reinforcing his commitment to creating sustainable and accessible housing solutions.
The timing of this action is important as it dovetails with enhancements to the LIHTC program recently enacted by The One Big Beautiful Bill. By synchronizing efforts, the enhancements and increased investment capacity promise to deliver substantial improvements in housing supply.
“Director Pulte’s increase in the LIHTC caps is a commendable step towards addressing affordable housing challenges,” said Justin Wheeler, CEO at Berkadia. “This initiative not only enhances housing supply but also strengthens the foundation for stable communities. Berkadia is proud to support this effort and looks forward to the positive impact it will have across the nation.”
As the country’s largest originator of multifamily GSE loans*, Berkadia is thrilled by this announcement. The company is committed to advancing this initiative in partnership with the FHFA, Fannie Mae, and Freddie Mac. Berkadia’s involvement underscores its dedication to supporting affordable housing solutions and contributing to the broader goal of housing stability.
Reach out to a Berkadia Mortgage Banking professional today to discuss your financing needs.
*Based on Berkadia’s combined total production volumes released by Fannie Mae Multifamily ($6.25B) and Freddie Mac Multifamily ($7.2B) for 2024.