Housing finance giants Freddie Mac and Fannie Mae plan to put into practice new minimum lease standards designed to protect tenants at multifamily properties that seek to receive financing.
The revised policy includes rules for apartment leases that would guarantee a five-day grace period for rent payments and fee incursions, a 30-day notice for rent increases, and a 30-day notice for lease expirations.“
These lease standards seek to extend the reach of common baseline tenant protections,” Kevin Palmer, head of multifamily for Freddie Mac, said in a statement. “Although many borrowers already exceed these minimum standards, all will be required to meet the standards to obtain [government-sponsored enterprise] financing in the future.”
Source: CoStar News – Freddie Mac, Fannie Mae Adopt New Lease Requirements for Multifamily Loans
