k-12 Tax & $pending climate: Communism & Rent Freeze Economics
Freddie Mac has paused new loans, and Fannie Mae is baking in the cost of the rent freeze, making it difficult for landlords to get financing, multiple real estate sources told The City Reporter.
Fannie Mae’s new requirements assume that rents will not increase on rent-stabilized units for four to eight years, covering Mamdani’s current term and a potential second term.
Fannie Mae and lenders like Community Preservation Corp. are also assuming that expenses increase each year by at least 5%, which means the operating margin for buildings will decline by at least that amount each year.
Numerous landlords, advocates and nonprofit housing executives, some with direct knowledge of the current terms, confirmed the changes in the loan standards. Many agreed to discuss the issue only if they were not identified, fearful of retaliation from either the government-backed lenders or the Mamdani administration.
Fannie Mae did not return a request for comment, and Freddie Mac said it “continuously reviews market conditions and makes real-time adjustments to offer responsible, risk-adjusted lending aligned with mission-driven objectives.”
