Fannie Mae picks Charlotte for new program expanding housing access
Charlotte is one of three cities chosen by Fannie Mae for a new program to increase voucher acceptance in rental housing, the government-backed mortgage institution announced Monday.
Fannie Mae will offer lower loan financing costs to owners of apartment buildings if they agree to accept federal Housing Choice vouchers that help people afford rent. Austin and Dallas are the other two cities chosen.
Those three cities have booming housing markets, with rising rents and home sale prices pushing many beyond their means. That puts enormous pressure on low-income families with federal vouchers, commonly know as the Section 8 program, to bridge the gap between what they can afford and asking rents.
But tenants often struggle to find a landlord willing to take those vouchers, especially in cities with a dire shortage of affordable housing where landlords can been increasingly selective. In Charlotte, 1 in 5 who get a Housing Choice voucher have to return it after not finding housing within the search period.
Fannie Mae began with these three markets because they are cities with historically more affordable rents that have experienced big increases in recent years, said Michele Evans, Fannie Mae’s executive vice president and head of multifamily.
The cities also do not have laws prohibiting source of income discrimination, meaning landlords can automatically reject tenants with vouchers. Evans said the goal is to increase access to housing with a voucher for low-income families, people of color, and those who are elderly or have disabilities.
“When you start to think about the people who sit behind those vouchers, you can really get a feel and a flavor for how this could really transform the market,” she said.
Fulton Meachem, CEO of Charlotte’s housing authority Inlivian, praised the move to address housing disparities.
“Increasing rental housing prices in metropolitan cities across the country are placing housing out of reach for many families,” he said. “It is our hope that the pilot will provide additional housing opportunities for Housing Choice voucher holders.”
The initial program will run one year. While Fannie Mae will work most closely with Charlotte, Austin and Dallas, the program is available across North Carolina and Texas, even if the development is located closer to another public housing authority.
Fannie Mae will monitor compliance through fair housing testing, where someone contacts the property and asks to apply using a voucher to see if they are turned away. Owners who are not in compliance will have to undergo fair housing training and could lose the financial incentives for repeat violations.
Other voucher incentives
Fannie Mae’s announcement comes as Charlotte City Council will soon discuss recommendations to increase voucher acceptance locally. One recommendation would require developers that accept public money for projects with rental housing to consider applicants with vouchers. If approved, that proposal would apply to new construction and not existing rental properties.
The other recommendations call for increasing financial incentives for landlords who accept vouchers.
This story was originally published April 4, 2022 at 10:59 AM.
%20Cropped.jpg)