Fannie Mae and Freddie Mac Tighten Loans for Rent-Regulated Buildings

Key facts

Reported by

The City, 11/02/2026

Freddie Mac

Paused new loans on NYC rent-regulated buildings while it assesses the rent freeze

Fannie Mae rent assumption

No increases on rent-stabilized units for four to eight years

Expense assumption

Expenses rise at least 5% per year

Expected rent loss

Community Housing Preservation Corp. doubled its expected collection loss to 10%

Affordable lending cut

CHPC plans 50% fewer NYC loans to all-affordable projects than two years ago

Less affected

Mixed market-rate and rent-regulated buildings, including newer ones with 20% to 40% below-market units

City response

Deputy Mayor for Housing and Planning Leila Bozorg

What it means

The highlights

1. Freddie Mac has paused new loans while it assesses the rent freeze's impact.
2. Fannie Mae assumes no rent increases on stabilized units for four to eight years.
3. Lenders assume 5% yearly expense growth; one doubled expected rent loss to 10%.

Why it matters Landlords

Owners of mostly rent-stabilized buildings face smaller loans, bigger equity demands and harder refinancing.

What to do: Review your loan maturities and refinancing plans now.

Not known yet

• When or whether Freddie Mac will lift its pause
• Fannie Mae's own account of the changes, since it did not comment
• How many buildings face refinancing deadlines under the new terms
• When the city's proposed financing tools and insurance program will be available

Background

In New York City, rents for rent-stabilized apartments can only rise by the amounts the Rent Guidelines Board approves each year. Lenders size loans largely on a building's expected income minus expenses. When projected rent growth falls or expected costs and losses rise, the loan a building can support usually shrinks, and owners must cover the gap with their own money or subsidies.