Rising interest rates, building material costs and unprecedented inflation have exacerbated America's fight to keep housing affordable. We seem to be moving further and further away from the foundational aspect of home ownership as part of the 'American Dream.' Whether by choice or force, America has gravitated more and more to a renter's society. And this transition has placed an even greater emphasis on providing safe and adequate affordable housing in the multifamily market.

Since their inception, Fannie Mae and Freddie Mac, the nation's largest lenders in this space, have been mission oriented in championing affordable housing across the country. Much has been said and written about Fannie Mae and Freddie Mac's role leading up to and then following the Great Recession. In 2008, Congress passed legislation establishing the Federal Housing Finance Agency (FHFA) as the regulatory oversight body of Fannie Mae, Freddie Mac and the Federal Home Loan Banks. Part of this legislation tasked the FHFA with the ability to establish housing mission goals with an emphasis on affordable housing.

As part of their oversight, the FHFA establishes a yearly volume of mortgages that both Fannie Mae and Freddie Mac are allowed to purchase from a limited number of licensed lenders who have approvals to underwrite, originate and sell multifamily mortgages to Fannie and Freddie. These amounts, known as "volume caps," have historically prioritized the affordable housing mission of both entities. Since their inception, these volume caps have gradually increased and the transactions that qualify as mission driven affordable housing have evolved.