PART 1282—ENTERPRISE HOUSING GOALS AND MISSION Authority: 12 U.S.C. 4501, 4502, 4511, 4513, 4526, 4561-4566. Source: 75 FR 55930, Sept. 14, 2010, unless otherwise noted. Subpart A—General § 1282.1 Definitions. (a) Statutory terms. (b) Other terms. Additional Activity, Agricultural worker, AHAR AHAR information Area of concentrated poverty, Balloon mortgage Borrower income Charter Act Colonia, Colonia census tract, Community development financial institution, Conventional mortgage Day Designated disaster area et seq. Dwelling unit Efficiency Evaluation Guidance, Extremely low-income (i) In the case of owner-occupied units, income not in excess of 30 percent of area median income; and (ii) In the case of rental units, income not in excess of 30 percent of area median income, with adjustments for smaller and larger families in accordance with this part. Families in low-income areas (i) Any family that resides in a census tract in which the median income does not exceed 80 percent of the area median income; (ii) Any family with an income that does not exceed area median income that resides in a minority census tract; and (iii) Any family with an income that does not exceed area median income that resides in a designated disaster area. Family Fannie Mae Charter Act et seq. Federally insured credit union, Federally recognized Indian tribe, FEMA FOIA Freddie Mac Act et seq. High-needs rural population, (i) Members of a Federally recognized Indian tribe located in an Indian area; or (ii) Agricultural workers. High-needs rural region, (i) Middle Appalachia; (ii) The Lower Mississippi Delta; (iii) A colonia census tract; or (iv) A tract located in a persistent poverty county and not included in Middle Appalachia, the Lower Mississippi Delta, or a colonia. High opportunity area, (i) An area designated by HUD as a “Difficult Development Area,” pursuant to 26 U.S.C. 42(d)(5)(B)(iii), during any year covered by an Underserved Markets Plan or in the year prior to an Underserved Markets Plan's effective date, whose poverty rate is lower than the rate specified by FHFA in the Evaluation Guidance; or (ii) An area designated by a state or local Qualified Allocation Plan as a high opportunity area and which meets a definition FHFA has identified as eligible for duty to serve credit in the Evaluation Guidance. HOEPA mortgage Indian area, Insured depository institution, et seq. Lender Low-income (i) In the case of owner-occupied units, income not in excess of 80 percent of area median income; and (ii) In the case of rental units, income not in excess of 80 percent of area median income, with adjustments for smaller and larger families in accordance with this part. Lower Mississippi Delta, Manufactured home, et seq., Manufactured housing community, Median income Metropolitan area Middle Appalachia, Minority (i) American Indian or Alaskan Native—a person having origins in any of the original peoples of North and South America (including Central America), and who maintains Tribal affiliation or community attachment; (ii) Asian—a person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent, including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam; (iii) Black or African American—a person having origins in any of the black racial groups of Africa; (iv) Hispanic or Latino—a person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race; and (v) Native Hawaiian or Other Pacific Islander—a person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands. Minority census tract Mixed-income housing, (i) A minimum percentage of the units are unaffordable to low-income families, or to families at higher income levels, as specified in the Evaluation Guide; and (ii) A minimum percentage of the units are affordable to low-income families, or to families at lower income levels, as specified in the Evaluation Guide. Moderate-income (i) In the case of owner-occupied units, income not in excess of area median income; and (ii) In the case of rental units, income not in excess of area median income, with adjustments for smaller and larger families in accordance with this part. Mortgage Mortgage data Mortgage purchase Mortgage revenue bond Multifamily housing Non-metropolitan area Owner-occupied housing Participation Persistent poverty county, Private label security Proprietary information Public data Purchase money mortgage Refinancing mortgage (i) A renewal of a single payment obligation with no change in the original terms; (ii) A reduction in the annual percentage rate of the mortgage as computed under the Truth in Lending Act (15 U.S.C. 1601 et seq. (iii) An agreement involving a court proceeding; (iv) A workout agreement, in which a change in the payment schedule or collateral requirements is agreed to as a result of the mortgagor's default or delinquency, unless the rate is increased or the new amount financed exceeds the unpaid balance plus earned finance charges and premiums for the continuation of insurance; (v) The renewal of optional insurance purchased by the mortgagor and added to an existing mortgage; (vi) A renegotiated balloon mortgage on a multifamily property where the balloon payment was due within 1 year after the date of the closing of the renegotiated mortgage; and (vii) A conversion of a balloon mortgage note on a single-family property to a fully amortizing mortgage note where the Enterprise already owns or has an interest in the balloon note at the time of the conversion. Regulatory Activity, Rent (i) Rent is determined based on the total combined rent for all bedrooms in the dwelling unit, including fees or charges for management and maintenance services and any utility charges that are included. (A) Rent concessions shall not be considered, i.e., (B) Rent is net of rental subsidies, i.e., (ii) When the rent does not include all utilities, the rent shall also include: (A) The actual cost of utilities not included in the rent; (B) The nationwide average utility allowance, as issued periodically by FHFA; (C) The utility allowance established under the HUD Section 8 Program (42 U.S.C. 1437f) for the area where the property is located; or (D) The utility allowance for the area in which the property is located, as established by the state or local housing finance agency for determining the affordability of low-income housing tax credit properties under section 42 of the Internal Revenue Code (26 U.S.C. 42). Rental unit Residence Resident-owned manufactured housing community, Residential economic diversity activity, (i) Affordable housing in a high opportunity area; or (ii) Mixed-income housing in an area of concentrated poverty. Residential mortgage Rural area, (i) A census tract outside of a metropolitan statistical area as designated by the Office of Management and Budget; or (ii) A census tract in a metropolitan statistical area as designated by the Office of Management and Budget that is: (A) Outside of the metropolitan statistical area's Urbanized Areas as designated by the U.S. Department of Agriculture's (USDA) Rural-Urban Commuting Area (RUCA) Code #1, and outside of tracts with a housing density of over 64 housing units per square mile for USDA's RUCA Code #2; or (B) A colonia census tract that does not satisfy paragraphs (i) or (ii)(A) of this definition. Seasoned mortgage Second mortgage Secondary residence Single-family housing Small financial institution, Small multifamily property Small multifamily rental property, Statutory Activity, Underserved Markets Plan, Utilities Very low-income (i) In the case of owner-occupied units, income not in excess of 50 percent of area median income; and (ii) In the case of rental units, income not in excess of 50 percent of area median income, with adjustments for smaller and larger families in accordance with this part. [75 FR 55930, Sept. 14, 2010, as amended at 78 FR 2328, Jan. 11, 2013; 80 FR 53430, Sept. 3, 2015; 81 FR 76300, Nov. 2, 2016; 81 FR 96292, Dec. 29, 2016; 83 FR 5899, Feb. 12, 2018; 86 FR 73657, Dec. 28, 2021; 88 FR 23563, Apr. 18, 2023; 89 FR 106275, Dec. 30, 2024] Subpart B—Housing Goals § 1282.11 General. (a) General. (1) Three single-family owner-occupied purchase money mortgage housing goals, a single-family owner-occupied purchase money mortgage housing subgoal, a single-family refinancing mortgage housing goal, two multifamily housing goals, and a multifamily housing subgoal; (2) Requirements for measuring performance under the goals; and (3) Procedures for monitoring and enforcing the goals. (b) Annual goals. (c) Severability. [75 FR 55930, Sept. 14, 2010, as amended at 80 FR 53430, Sept. 3, 2015; 86 FR 73657, Dec. 28, 2021; 89 FR 106275, Dec. 30, 2024; 90 FR 59965, Dec. 23, 2025] § 1282.12 Single-family housing goals. (a) Single-family housing goals. (1) The share of the market that qualifies for the goal; or (2) The benchmark level for the goal. (b) Size of market. (1) Only owner-occupied, conventional loans shall be considered; (2) Purchase money mortgages and refinancing mortgages shall only be counted for the applicable goal or goals; (3) All mortgages flagged as HOEPA loans or subordinate lien loans shall be excluded; (4) All mortgages with original principal balances above the conforming loan limits for single unit properties for the year being evaluated (rounded to the nearest $1,000) shall be excluded; (5) All mortgages with rate spreads of 150 basis points or more above the applicable average prime offer rate as reported in the Home Mortgage Disclosure Act data shall be excluded; and (6) All mortgages that are missing information necessary to determine appropriate counting under the housing goals shall be excluded. (c) Low-income home purchase goal. (1) The share of such mortgages in the market as defined in paragraph (b) of this section in each year; or (2) The benchmark level, which for 2026, 2027, and 2028 shall be 21.0 percent of the total number of purchase money mortgages purchased by that Enterprise in each year that finance owner-occupied single-family properties. (d) Very low-income home purchase goal. (1) The share of such mortgages in the market as defined in paragraph (b) of this section in each year; or (2) The benchmark level, which for 2026, 2027, and 2028 shall be 3.5 percent of the total number of purchase money mortgages purchased by that Enterprise in each year that finance owner-occupied single-family properties. (e) Low-income areas home purchase goal. (1) The share of such mortgages in the market as defined in paragraph (b) of this section in each year; or (2) A benchmark level which shall be set annually by FHFA by notice based on the benchmark level for the low-income areas home purchase subgoal, plus an adjustment factor reflecting the additional incremental share of mortgages for moderate-income families in designated disaster areas in the most recent year for which such data is available. FHFA will make the notice available on FHFA's website, www.fhfa.gov. (f) Low-income areas home purchase subgoal. (1) The share of such mortgages in the market as defined in paragraph (b) of this section in each year; or (2) The benchmark level, which for 2026, 2027, and 2028 shall be 16.0 percent of the total number of purchase money mortgages purchased by that Enterprise in each year that finance owner-occupied single-family properties. (g) Minority census tracts housing subgoal. (1) The share of such mortgages in the market as defined in paragraph (b) of this section in each year; or (2) The benchmark level, which for 2026, 2027, and 2028 shall be 21.0 percent of the total number of refinancing mortgages purchased by that Enterprise in each year that finance owner-occupied single-family properties. (h) Refinancing housing goal. (1) The share of such mortgages in the market as defined in paragraph (b) of this section in each year; or (2) The benchmark level, which for 2025, 2026, and 2027 shall be 26 percent of the total number of refinancing mortgages purchased by that Enterprise in each year that finance owner-occupied single-family properties. [80 FR 53430, Sept. 3, 2015, as amended at 83 FR 5899, Feb. 12, 2018; 85 FR 82895, Dec. 21, 2020' 86 FR 73658, Dec. 28, 2021; 89 FR 106275, Dec. 30, 2024; 90 FR 59966, Dec. 23, 2025] § 1282.13 Multifamily housing goals and subgoal. (a) Multifamily housing goals and subgoal. (b) Multifamily low-income housing goal. (c) Multifamily very low-income housing goal. (d) Small multifamily low-income housing subgoal. [89 FR 106275, Dec. 30, 2024, as amended at 90 FR 59966, Dec. 23, 2025] § 1282.14 Discretionary adjustment of housing goals. (a) An Enterprise may petition the Director in writing during any year to reduce any goal or subgoal for that year. (b) The Director shall seek public comment on any such petition for a period of 30 days. (c) The Director shall make a determination regarding the petition within 30 days after the end of the public comment period. If the Director requests additional information from the Enterprise after the end of the public comment period, the Director may extend the period for a final determination for a single additional 15-day period. (d) The Director may reduce a goal or subgoal pursuant to a petition for reduction only if: (1) Market and economic conditions or the financial condition of the Enterprise require such a reduction; or (2) Efforts to meet the goal or subgoal would result in the constraint of liquidity, over-investment in certain market segments, or other consequences contrary to the intent of the Safety and Soundness Act or the purposes of the Charter Acts (12 U.S.C. 1716; 12 U.S.C. 1451 note). § 1282.15 General counting requirements. (a) Calculating the numerator and denominator for single-family housing goals. (1) The numerator. (2) The denominator. (b) Counting owner-occupied units. i.e., (2) Mortgage purchases financing owner-occupied single-family properties for which the income of the mortgagors is not available shall be included in the denominator for the single-family housing goals and subgoal, but such mortgages shall not be counted in the numerator of any single-family housing goal or subgoal. (c) Calculating the numerator and denominator for multifamily housing goals and subgoal. (1) The numerator. (2) The denominator. (d) Counting rental units Use of rent. (2) Affordability of rents based on housing program requirements. (3) Unoccupied units. (4) Timeliness of information. (e) Missing data or information for multifamily housing goals and subgoal. (2) When an Enterprise lacks sufficient information to determine whether a rental unit in a property securing a multifamily mortgage purchased by an Enterprise counts toward achievement of the multifamily housing goals and subgoal because rental data is not available, an Enterprise's performance with respect to such unit may be evaluated using estimated affordability information by multiplying the number of rental units with missing affordability information in properties securing multifamily mortgages purchased by the Enterprise in each census tract by the percentage of all rental dwelling units in the respective tracts that would count toward achievement of each goal and subgoal, as determined by FHFA. (3) The estimation methodology in paragraph (e)(2) of this section may be used up to a nationwide maximum of 5 percent of the total number of rental units in properties securing multifamily mortgages purchased by the Enterprise in the current year. Multifamily rental units with missing affordability information in excess of this maximum shall be included in the denominator for the multifamily housing goals and subgoal, but such rental units shall not be counted in the numerator of any multifamily housing goals and subgoal. Multifamily rental units with missing affordability information for which estimation information is not available shall be excluded from both the numerator and the denominator for purposes of the multifamily housing goals and subgoal. (f) Credit toward multiple goals. (g) Application of median income. (1) The metropolitan area, if the property which is the subject of the mortgage is in a metropolitan area; and (2) In all other areas, the county in which the property is located, except that where the State non-metropolitan median income is higher than the county's median income, the area is the State non-metropolitan area. (h) Sampling not permitted. [75 FR 55930, Sept. 14, 2010, as amended at 80 FR 53431, Sept. 3, 2015; 83 FR 5899, Feb. 12, 2018; 86 FR 73658, Dec. 28, 2021; 87 FR 78846, Dec. 23, 2022; 89 FR 106275, Dec. 30, 2024; 90 FR 59966, Dec. 23, 2025] § 1282.16 Special counting requirements. (a) General. (b) Not counted. (1) Equity investments in low-income housing tax credits; (2) Purchases of State and local government housing bonds except as provided in paragraph (c)(8) of this section; (3) Purchases of single-family non-conventional mortgages and multifamily non-conventional mortgages, except: (i) Multifamily mortgages acquired under a risk-sharing arrangement with a Federal agency; (ii) Multifamily mortgages under other multifamily mortgage programs involving Federal guarantees, insurance or other Federal obligation where FHFA determines in writing that the financing needs addressed by the particular mortgage program are not well served and that the mortgage purchases under such program should count under the housing goals; (4) Commitments to buy mortgages at a later date or time; (5) Options to acquire mortgages; (6) Rights of first refusal to acquire mortgages; (7) Any interests in mortgages that the Director determines, in writing, shall not be treated as interests in mortgages; (8) Mortgage purchases to the extent they finance any dwelling units that are secondary residences; (9) Single-family refinancing mortgages that result from conversion of balloon notes to fully amortizing notes, if the Enterprise already owns or has an interest in the balloon note at the time conversion occurs; (10) Purchases of subordinate lien mortgages (second mortgages); (11) Purchases of mortgages or interests in mortgages that were previously counted by the Enterprise under any current or previous housing goal within the five years immediately preceding the current performance year; (12) Purchases of mortgages where the property, or any units within the property, have not been approved for occupancy; (13) Purchases of private label securities; (14) Enterprise contributions to the Housing Trust Fund (12 U.S.C. 4568) or the Capital Magnet Fund (12 U.S.C. 4569), and mortgage purchases funded with such grant amounts; and (15) Any combination of factors in paragraphs (b)(1) through (b)(14) of this section. (c) Other special rules. (1) Credit enhancements. (A) The Enterprise provides a specific contractual obligation to ensure timely payment of amounts due under a mortgage or mortgages financed by the issuance of housing bonds (such bonds may be issued by any entity, including a State or local housing finance agency); and (B) The Enterprise assumes a credit risk in the transaction substantially equivalent to the risk that would have been assumed by the Enterprise if it had securitized the mortgages financed by such bonds. (ii) When an Enterprise provides a specific contractual obligation to ensure timely payment of amounts due under any mortgage originally insured by a public purpose mortgage insurance entity or fund, the Enterprise may, on a case-by-case basis, seek approval from the Director for such activities to count toward achievement of the housing goals. (2) [Reserved] (3) Risk-sharing. (4) Participations. (5) Cooperative housing and condominiums. (ii) The purchase of a blanket mortgage on a cooperative building or a mortgage on a condominium project shall be treated as a mortgage purchase for purposes of the housing goals. The purchase of a blanket mortgage on a cooperative building shall be counted in the same manner as a mortgage purchase of a multifamily rental property, except that affordability must be determined based solely on the comparable market rents used in underwriting the blanket loan. If the underwriting rents are not available, the loan shall not be treated as a mortgage purchase for purposes of the housing goals. The purchase of a mortgage on a condominium project shall be counted in the same manner as a mortgage purchase of a multifamily rental property. (iii) Where an Enterprise purchases both a blanket mortgage on a cooperative building and share loans for units in the same building, both the mortgage on the cooperative building and the share loans shall be treated as mortgage purchases for purposes of the housing goals. Where an Enterprise purchases both a mortgage on a condominium project and mortgages on individual dwelling units in the same project, both the mortgage on the condominium project and the mortgages on individual dwelling units shall be treated as mortgage purchases for purposes of the housing goals. (6) Seasoned mortgages. (7) Purchase of refinancing mortgages. (8) Mortgage revenue bonds. (9) -(13) [Reserved] (14) Seller dissolution option. (A) The terms of the transaction provide for a lockout period that prohibits the exercise of the dissolution option for at least one year from the date on which the transaction was entered into by the Enterprise and the seller of the mortgages; and (B) The transaction is not dissolved during the one-year minimum lockout period. (ii) The Director may grant an exception to the one-year minimum lockout period described in paragraphs (c)(14)(i)(A) and (B) of this section, in response to a written request from an Enterprise, if the Director determines that the transaction furthers the purposes of the Safety and Soundness Act and the Enterprise's Charter Act. (iii) For purposes of this paragraph (c)(14), “seller dissolution option” means an option for a seller of mortgages to the Enterprises to dissolve or otherwise cancel a mortgage purchase agreement or loan sale. (d) HOEPA mortgages. (e) FHFA review of transactions. www.fhfa.gov. [75 FR 55930, Sept. 14, 2010, as amended at 80 FR 53432, Sept. 3, 2015; 86 FR 73658, Dec. 28, 2021] § 1282.17 Affordability—Income level definitions—family size and income known (owner-occupied units, actual tenants, and prospective tenants). In determining whether a dwelling unit is affordable where income information (and family size, for rental units) is known to the Enterprise, the affordability of the unit shall be determined as follows: (a) Moderate-income (1) In the case of owner-occupied units, income not in excess of 100 percent of area median income; and (2) In the case of rental units, where the income of actual or prospective tenants is available, income not in excess of the following percentages of area median income corresponding to the following family sizes: Number of persons in family Percentage of area 1 70 2 80 3 90 4 100 5 or more * *100% plus (8% multiplied by the number of persons in excess of 4). (b) Low-income (80%) (1) In the case of owner-occupied units, income not in excess of 80 percent of area median income; and (2) In the case of rental units, where the income of actual or prospective tenants is available, income not in excess of the following percentages of area median income corresponding to the following family sizes: Number of persons in family Percentage of area 1 56 2 64 3 72 4 80 5 or more * *80% plus (6.4% multiplied by the number of persons in excess of 4). (c) Low-income (60%) (1) In the case of owner-occupied units, income not in excess of 60 percent of area median income; and (2) In the case of rental units, where the income of actual or prospective tenants is available, income not in excess of the following percentages of area median income corresponding to the following family sizes: Number of persons in family Percentage of area 1 42 2 48 3 54 4 60 5 or more * *60% plus (4.8% multiplied by the number of persons in excess of 4). (d) Very low-income (1) In the case of owner-occupied units, income not in excess of 50 percent of area median income; and (2) In the case of rental units, where the income of actual or prospective tenants is available, income not in excess of the following percentages of area median income corresponding to the following family sizes: Number of persons in family Percentage of area 1 35 2 40 3 45 4 50 5 or more * *50% plus (4.0% multiplied by the number of persons in excess of 4). (e) Extremely low-income (1) In the case of owner-occupied units, income not in excess of 30 percent of area median income; and (2) In the case of rental units, where the income of actual or prospective tenants is available, income not in excess of the following percentages of area median income corresponding to the following family sizes: Number of persons in family Percentage of area 1 21 2 24 3 27 4 30 5 or more * *30% plus (2.4% multiplied by the number of persons in excess of 4). [75 FR 55930, Sept. 14, 2010, as amended at 80 FR 53432, Sept. 3, 2015] § 1282.18 Affordability—Income level definitions—family size not known (actual or prospective tenants). In determining whether a rental unit is affordable where family size is not known to the Enterprise, income will be adjusted using unit size, and affordability determined as follows: (a) For moderate-income, Unit size Percentage of area median income Efficiency 70 1 bedroom 75 2 bedrooms 90 3 bedrooms or more * *104% plus (12% multiplied by the number of bedrooms in excess of 3). (b) For low-income (80%), Unit size Percentage of area median income Efficiency 56 1 bedroom 60 2 bedrooms 72 3 bedrooms or more * *83.2% plus (9.6% multiplied by the number of bedrooms in excess of 3). (c) For low-income (60%), Unit size Percentage of area median income Efficiency 42 1 bedroom 45 2 bedrooms 54 3 bedrooms or more * *62.4% plus (7.2% multiplied by the number of bedrooms in excess of 3). (d) For very low-income, Unit size Percentage of area median income Efficiency 35 1 bedroom 37.5 2 bedrooms 45 3 bedrooms or more * *52% plus (6.0% multiplied by the number of bedrooms in excess of 3). (e) For extremely low-income, Unit size Percentage of area median income Efficiency 21 1 bedroom 22.5 2 bedrooms 27 3 bedrooms or more * *31.2% plus (3.6% multiplied by the number of bedrooms in excess of 3). § 1282.19 Affordability—Rent level definitions—tenant income is not known. For purposes of determining whether a rental unit is affordable where the income of the family in the dwelling unit is not known to the Enterprise, the affordability of the unit is determined based on unit size as follows: (a) For moderate-income, Unit size Percentage of area median income Efficiency 21 1 bedroom 22.5 2 bedrooms 27 3 bedrooms or more * *31.2% plus (3.6% multiplied by the number of bedrooms in excess of 3). (b) For low-income (80%), Unit size Percentage of area median income Efficiency 16.8 1 bedroom 18 2 bedrooms 21.6 3 bedrooms or more * *24.96% plus (2.88% multiplied by the number of bedrooms in excess of 3). (c) For low-income (60%), Unit size Percentage of area median income Efficiency 12.6 1 bedroom 13.5 2 bedrooms 16.2 3 bedrooms or more * *18.72% plus (2.16% multiplied by the number of bedrooms in excess of 3). (d) For very low-income, Unit size Percentage of area median income Efficiency 10.5 1 bedroom 11.25 2 bedrooms 13.5 3 bedrooms or more * *15.6% plus (1.8% multiplied by the number of bedrooms in excess of 3). (e) For extremely low-income, Unit size Percentage of area Efficiency 6.3 1 bedroom 6.75 2 bedrooms 8.1 3 bedrooms or more * * 9.36% plus (1.08% multiplied by the number of bedrooms in excess of 3). [75 FR 55930, Sept. 14, 2010, as amended at 80 FR 53432, Sept. 3, 2015] § 1282.20 Preliminary determination of compliance with housing goals; notice of preliminary determination. (a) Preliminary determination. (b) Notice of preliminary determination. (c) Response by Enterprise. [90 FR 59966, Dec. 23, 2025] § 1282.21 Determination of compliance with housing goals, notice of determination. (a) Determination. (b) Notice of determination. [90 FR 59966, Dec. 23, 2025] § 1282.22 Housing plans. (a) General. (b) Nature of plan. (1) Be feasible; (2) Be sufficiently specific to enable the Director to monitor compliance periodically; (3) Describe the specific actions that the Enterprise will take in a time period determined by the Director to improve the Enterprise's performance under the housing goal or subgoal; and (4) Address any additional matters relevant to the plan as required, in writing, by the Director. (c) Deadline for submission. (d) Review of housing plans. (e) Resubmission. (f) Enforcement of housing plans. [89 FR 106276, Dec. 30, 2024, as amended at 90 FR 59966, Dec. 23, 2025] Subpart C—Duty to Serve Underserved Markets Source: 81 FR 96294, Dec. 29, 2016, unless otherwise noted. § 1282.31 General. (a) This subpart sets forth the Enterprise duty to serve three underserved markets as required by section 1335 of the Safety and Soundness Act (12 U.S.C. 4565). This subpart also establishes standards and procedures for annually evaluating and rating Enterprise compliance with the duty to serve underserved markets. (b) Nothing in this subpart permits or requires an Enterprise to engage in any activity that would otherwise be inconsistent with its Charter Act or the Safety and Soundness Act. § 1282.32 Underserved Markets Plan. (a) General. (b) Term of Plan. (c) Effective date of Plans. (d) Plan content. Consideration of minimum number of activities. (2) Additional Activities. (3) Residential economic diversity activities. (e) Objectives. (1) Strategic. (2) Measurable. (3) Realistic. (4) Time-bound. (5) Tied to analysis of market opportunities. (f) Evaluation areas. (g) Plan procedures. Submission of proposed Plans. First proposed Plan. (ii) Subsequent proposed Plans. (2) Posting of proposed Plans. (3) Public input. (ii) The Enterprises' subsequent proposed Plans will be available for public input pursuant to the timeframe and procedures established by FHFA. (4) Enterprise review. (5) FHFA review. FHFA review of first proposed Plans. (ii) FHFA review of subsequent proposed Plans. (iii) Designation of Statutory Activity or Regulatory Activity. (iv) FHFA Non-Objections to underserved markets in a proposed Plan. (6) Effective date of an underserved market in a Plan. (7) Posting of an underserved market section in a Plan. (h) Modification of a Plan. § 1282.33 Manufactured housing market. (a) Duty in general. (b) Eligible activities. (c) Regulatory Activities. (1) Manufactured homes titled as real property. (2) Chattel. (3) Manufactured housing communities owned by a governmental entity, nonprofit organization, or residents. (4) Manufactured housing communities with certain pad lease protections. (i) One-year renewable lease term unless there is good cause for nonrenewal; (ii) Thirty-day written notice of rent increases; (iii) Five-day grace period for rent payments and right to cure defaults on rent payments; (iv) Tenant has the right to sell the manufactured home without having to first relocate it out of the community; (v) Tenant has the right to sublease or assign the pad lease for the unexpired term to the new buyer of the tenant's manufactured home without any unreasonable restraint; (vi) Tenant has the right to post “For Sale” signs; (vii) Tenant has the right to sell the manufactured home in place within a reasonable time period after eviction by the manufactured housing community owner; and (viii) Tenant has the right to receive at least 60 days advance notice of a planned sale or closure of the manufactured housing community. (d) Additional Activities. § 1282.34 Affordable housing preservation market. (a) Duty in general. (b) Eligible activities. (c) Statutory Activities. (1) Section 8. (2) Section 236. (3) Section 221(d)(4). (4) Section 202. (5) Section 811. (6) McKinney-Vento Homeless Assistance. et seq.; (7) Section 515. (8) Low-income housing tax credits. (9) Other comparable state or local affordable housing programs. (d) Regulatory Activities. (1) Financing of small multifamily rental properties. (2) Energy or water efficiency improvements on multifamily rental properties. (3) Energy or water efficiency improvements on single-family, first lien properties. (4) Shared equity programs for affordable homeownership preservation. (A) Resale restriction programs administered by community land trusts, other nonprofit organizations, or state or local governments or instrumentalities; or (B) Shared appreciation loan programs administered by community land trusts, other nonprofit organizations, or state or local governments or instrumentalities that may or may not partner with a for-profit institution to invest in, originate, sell, or service shared appreciation loans. (ii) A program in paragraph (d)(4)(i) must: (A) Provide homeownership opportunities to very low-, low-, or moderate-income households; (B) Utilize a ground lease, deed restriction, subordinate loan, or similar legal mechanism that includes provisions stating that the program will keep the home affordable for subsequent very low-, low-, or moderate-income families, the affordability term is at least 30 years after recordation, a resale formula applies that limits the homeowner's proceeds upon resale, and the program administrator or its assignee has a preemptive option to purchase the homeownership unit from the homeowner at resale; and (C) Support homebuyers and homeowners to promote sustainable homeownership, including reviewing and pre-approving refinances and home equity lines of credit. (5) HUD Choice Neighborhoods Initiative. (6) HUD Rental Assistance Demonstration program. (7) Purchase or rehabilitation of certain distressed properties. (e) Additional Activities. § 1282.35 Rural markets. (a) Duty in general. (b) Eligible activities. (c) Regulatory Activities. (1) High-needs rural regions. (2) High-needs rural populations. (3) Financing by small financial institutions of rural housing. (4) Small multifamily rental properties in rural areas. (d) Additional Activities. § 1282.36 Evaluations, ratings, and Evaluation Guidance. (a) Evaluation of compliance. (b) Evaluation areas. (1) Outreach. (2) Loan product. (3) Loan purchase. (4) Investments and grants. (c) Evaluation process. (1) Quantitative assessment. (2) Qualitative assessment. (3) Extra credit-eligible activities. (4) Ratings. Assignment of ratings. (ii) Ongoing Assessment of Evaluation and Rating Process. (d) Evaluation Guidance. Three-year term. (2) Contents. (3) Timelines for Evaluation Guidance. For the first Plan. (B) The proposed Evaluation Guidance will be available for public input for a period of 120 days following its posting on FHFA's Web site. (C) FHFA will provide the Evaluation Guidance to the Enterprises no later than the time FHFA provides comments to the Enterprises on their proposed Plans. (ii) For subsequent Plans. (4) Posting of Evaluation Guidance. (5) Modification of Evaluation Guidance. § 1282.37 General requirements for credit. (a) General. (b) No credit under any evaluation area. (1) Contributions to the Housing Trust Fund (12 U.S.C. 4568) and the Capital Magnet Fund (12 U.S.C. 4569), and mortgage purchases funded with such grant amounts; (2) HOEPA mortgages; (3) Subordinate liens on multifamily properties, except for subordinate liens originated for energy or water efficiency improvements on multifamily rental properties that meet the requirements in § 1282.34(d)(2); (4) Subordinate liens on single-family properties, except for shared appreciation loans that satisfy all of the requirements in § 1282.34(d)(4) of this part; (5) Low-Income Housing Tax Credit equity investments in a property, except where the property is located in a rural area; (6) Permanent construction take-out loans and Additional Activities under the affordable housing preservation market, except as provided in paragraph (c) of this section; and (7) Any combination of factors in paragraphs (b)(1) through (b)(6) of this section. (c) Credit for certain permanent construction take-out loans and Additional Activities under the affordable housing preservation market. (1) Permanent construction take-out loans. (ii) The permanent construction take-out loans are for housing developed under state or local inclusionary zoning, real estate tax abatement, or loan programs, where the property owner has agreed to restrict a portion of the units for occupancy by very low-, low-, or moderate-income families, and to restrict the rents that can be charged for those units at affordable rents to those populations, or where the property is developed for a shared equity program that meets the requirements under § 1282.34(d)(4), and where there is a regulatory agreement, recorded use restriction, or deed restriction in place that maintains affordability for the term defined by the state or local program. (2) Additional Activities. (i) Involve preserving existing subsidy where the term of affordability required for the subsidy is followed, or where there is a deed restriction for affordability for the life of the loan; or (ii) Involve preserving the affordability of properties in conjunction with state or local inclusionary zoning, real estate tax abatement, or loan programs, where a regulatory agreement, recorded use restriction, or deed restriction maintains affordability of a portion of the property's units for the term defined by the state or local program. (d) No credit under loan purchase evaluation area. (1) Purchases of mortgages to the extent they finance any dwelling units that are secondary residences; (2) Single-family refinancing mortgages that result from conversion of balloon notes to fully amortizing notes, if the Enterprise already owns or has an interest in the balloon note at the time conversion occurs; (3) Purchases of mortgages or interests in mortgages that previously received credit under any underserved market within the five years immediately preceding the current performance year; (4) Purchases of mortgages where the property or any units within the property have not been approved for occupancy; (5) Any interests in mortgages that FHFA determines will not be treated as interests in mortgages; (6) Purchases of state and local government housing bonds except as provided in § 1282.39(h); and (7) Any combination of factors in paragraphs (d)(1) through (d)(6) of this section. (e) FHFA review of activities or objectives. (f) The year in which an activity or objective will receive credit. (g) Credit under one evaluation area. (h) Credit under multiple underserved markets. § 1282.38 General requirements for loan purchases. (a) General. (b) Counting dwelling units. (c) Credit for owner-occupied units. i.e., (2) Mortgage purchases financing owner-occupied single-family properties for which the income of the mortgagor(s) is not available will not receive duty to serve credit under the loan purchase evaluation area. (d) Credit for rental units. Use of rent. (2) Affordability of rents based on housing program requirements. (3) Unoccupied units. (4) Timeliness of information. (e) Missing data or information for rental units. (2) When an Enterprise lacks sufficient information to determine whether a rental unit in a single-family or multifamily property securing a mortgage purchased by the Enterprise receives duty to serve credit under the loan purchase evaluation area because rental data are not available, the Enterprise's performance with respect to such unit may be evaluated using estimated affordability information, except that an Enterprise may not estimate affordability of rental units for purposes of receiving extra credit for residential economic diversity activities. The estimated affordability information is calculated by multiplying the number of rental units with missing affordability information in properties securing the mortgages purchased by the Enterprise in each census tract by the percentage of all moderate-income rental dwelling units in the respective tracts, as determined by FHFA. (f) Affordability of manufactured housing communities. (1) Methodology for government-, nonprofit- or resident-owned manufactured housing communities. (2) Census tract methodology for any type of manufactured housing community. (i) If the median income of the census tract in which the manufactured housing community is located is less than or equal to the area median income, then all homes in the community are treated as affordable; (ii) If the median income of the census tract in which the manufactured housing community is located exceeds the area median income, then the number of homes that are treated as affordable is determined by dividing the area median income by the median income of the census tract in which the community is located and multiplying the resulting ratio by the total number of homes in the community. (g) Application of median income. (i) The metropolitan area, if the property which is the subject of the mortgage is in a metropolitan area; and (ii) In all other areas, the county in which the property is located, except that where the State non-metropolitan median income is higher than the county's median income, the area is the State non-metropolitan area. (2) When an Enterprise cannot precisely determine whether a mortgage is on dwelling unit(s) located in one area, the Enterprise must determine the median income for the split area in the manner prescribed by the Federal Financial Institutions Examination Council for reporting under the Home Mortgage Disclosure Act (12 U.S.C. 2801 et seq. (i) A census tract; or (ii) A census place code. (h) Newly available data. § 1282.39 Special requirements for loan purchases. (a) General. (b) Credit enhancements. (i) The Enterprise provides a specific contractual obligation to ensure timely payment of amounts due under a mortgage or mortgages financed by the issuance of housing bonds (such bonds may be issued by any entity, including a State or local housing finance agency); and (ii) The Enterprise assumes a credit risk in the transaction substantially equivalent to the risk that would have been assumed by the Enterprise if it had securitized the mortgages financed by such bonds. (2) When an Enterprise provides a specific contractual obligation to ensure timely payment of amounts due under any mortgage originally insured by a public purpose mortgage insurance entity or fund, the Enterprise may, on a case-by-case basis, seek approval from the Director for such transactions to receive credit under the loan purchase evaluation area for a particular underserved market. (c) Risk-sharing. (d) Participations. (e) Cooperative housing and condominiums. i.e., (2) The purchase of a blanket mortgage on a cooperative building or a mortgage on a condominium project will be treated as a mortgage purchase. The purchase of a blanket mortgage on a cooperative building will receive duty to serve credit in the same manner as a mortgage purchase of a multifamily rental property, except that affordability must be determined based solely on the comparable market rents used in underwriting the blanket loan. If the underwriting rents are not available, the loan will not be treated as a mortgage purchase. The purchase of a mortgage on a condominium project will receive duty to serve credit in the same manner as a mortgage purchase of a multifamily rental property. (3) Where an Enterprise purchases both a blanket mortgage on a cooperative building and share loans for units in the same building, both the mortgage on the cooperative building and the share loans will be treated as mortgage purchases. Where an Enterprise purchases both a mortgage on a condominium project and mortgages on individual dwelling units in the same project, both the mortgage on the condominium project and the mortgages on individual dwelling units will be treated as mortgage purchases. (f) Seasoned mortgages. (g) Purchase of refinancing mortgages. (h) Mortgage revenue bonds. (i) Seller dissolution option. (i) The terms of the transaction provide for a lockout period that prohibits the exercise of the dissolution option for at least one year from the date on which the transaction was entered into by the Enterprise and the seller of the mortgages; and (ii) The transaction is not dissolved during the one-year minimum lockout period. (2) FHFA may grant an exception to the one-year minimum lockout period described in paragraphs (i)(1)(i) and (i)(1)(ii) of this section, in response to a written request from an Enterprise, if FHFA determines that the transaction furthers the purposes of the Enterprise's Charter Act and the Safety and Soundness Act. (3) For purposes of paragraph (i) of this section, “seller dissolution option” means an option for a seller of mortgages to the Enterprises to dissolve or otherwise cancel a mortgage purchase agreement or loan sale. § 1282.40 Failure to comply. If the Director determines that an Enterprise has not complied with, or there is a substantial probability that an Enterprise will not comply with, the duty to serve a particular underserved market in a given year and the Director determines that such compliance is or was feasible, the Director will follow the procedures in 12 U.S.C. 4566(b). § 1282.41 Housing plans. (a) General. (b) Nature of housing plan. (1) Be feasible; (2) Be sufficiently specific to enable the Director to monitor compliance periodically; (3) Describe the specific actions that the Enterprise will take: (i) To comply with the duty to serve a particular underserved market for the next calendar year; or (ii) To make such improvements and changes in its operations as are reasonable in the remainder of the year, if the Director determines that there is a substantial probability that the Enterprise will fail to comply with the duty to serve a particular underserved market in such year; and (4) Address any additional matters relevant to the housing plan as required, in writing, by the Director. (c) Deadline for submission. (d) Review of housing plans. (e) Resubmission. Subpart D—Reporting Requirements § 1282.61 General. This subpart establishes data submission and reporting requirements to carry out the requirements of the Enterprises' Charter Acts and the Safety and Soundness Act. § 1282.62 Mortgage reports. (a) Loan-level data elements. (b) Quarterly Mortgage Reports. (1) Aggregations of the loan-level mortgage data compiled by the Enterprise under paragraph (a) of this section for year-to-date mortgage purchases, in the format specified in writing by the Director; (2) Year-to-date dollar volume, number of units, and number of mortgages on owner-occupied and rental properties purchased by the Enterprise that do, and do not, qualify under each housing goal as set forth in this part; and (3) Year-to-date computerized loan-level data consisting of the data elements required under paragraph (a) of this section. (c) Timing of Reports. (d) Revisions to Reports. (e) Format. § 1282.63 Annual Housing Activities Report. To comply with the requirements in sections 309(n) of the Fannie Mae Charter Act and 307(f) of the Freddie Mac Act and assist the Director in preparing the Director's Annual Report to Congress, each Enterprise shall submit to the Director an AHAR including the information listed in those sections of the Charter Acts. Each Enterprise shall submit such report within 75 days after the end of each calendar year, to the Director, the Committee on Financial Services of the House of Representatives, and the Committee on Banking, Housing, and Urban Affairs of the Senate. Each Enterprise shall make its AHAR available to the public online and at its principal and regional offices. Before making any such report available to the public, the Enterprise may exclude from the report any information that the Director has deemed proprietary. § 1282.64 Periodic reports. Each Enterprise shall provide to the Director such reports, information and data as the Director may request from time to time. § 1282.65 Enterprise data integrity. (a) Certification. (2) The certification shall state as follows: “To the best of my knowledge and belief, the information provided herein is true, correct and complete.” (b) Adjustment to correct errors, omissions or discrepancies in AHAR data. § 1282.66 Enterprise reports on duty to serve. (a) First and third quarter reports. (b) Second quarter report. (c) Annual report. (d) Public disclosure of information from reports. [81 FR 96300, Dec. 29, 2016]