Fannie, Freddie-Backed Apartments Must Meet New Radon Testing Standards
Starting with loan applications in June, 25% of ground floor units must be inspected.
The amount of testing of ground-floor apartment units was raised from 10 percent to 25 percent by the Federal Housing Finance Agency based on its new radon standard testing requirements for properties backed by Fannie Mae and Freddie Mac.
This modification will apply to multifamily properties with loan applications received after June 30, 2023.
The new requirements also call for an environmental professional to oversee radon testing and that tenants must be notified of radon testing.
Fannie Mae and Freddie Mac will also collaborate with housing providers, radon industry stakeholders, and the Centers for Disease Control and Prevention to encourage better radon data collection at multifamily properties, FHFA said.
MBA Asks For Flexibility
Separately, the Mortgage Bankers Association is asking the FHFA to remain flexible on the six-month implementation date if it becomes apparent that the new standards will impact the current lending pipeline.
“Industry participants, FHFA, the GSEs, and HUD – which has its own testing protocol – should continue to collect data on radon and strongly consider adjustments to these standards, if necessary, to ensure they align with tenant risk,” MBA President and CEO Bob Broeksmit, CMB said in prepared remarks.
FHFA said further adjustments may be warranted based on results from an evaluation of the GSEs’ radon testing standards to ensure they are comprehensive, data-informed, fully understood by property owners, and properly implemented and enforced.
“The FHFA and the Enterprises are committed to providing safe and sustainable housing opportunities for renters while ensuring a strong and liquid multifamily mortgage market,” FHFA director Sandra L. Thompson added in prepared remarks.
Paying Too Much For Insurance?
Get a FREE quote to insure your rental properties for less.