Fannie Mae Institutes Tenant Protections for Manufactured Housing

Fannie Mae, the government-sponsored enterprise (GSE), announced that it is expanding Tenant Site Lease Protections (TSLPs) for manufactured housing communities (MHCs) that are acquired or refinanced through Fannie Mae-backed loans. Prior to this policy change, the GSE incentivized borrowers to adopt TSLPs in at least 50 percent of a MHC’s sites leased to tenants, who either own or rent their manufactured homes while leasing the land on which these homes sit, through its loan pricing structure. This action expands TSLPs coverage to 100 percent of leased sites for all Fannie Mae-backed MHC loans issued on or after December 31, 2021.

The required TSLPs, which are defined by the Federal Housing Finance Agency’s (FHFA) Duty to Serve regulation, include the provision of one-year renewable lease terms, unless there is good cause for non-renewal; 30-day written notice of rent increases; a five-day grace period for rent payments; the right to cure defaults on rent payments; and at least 60-days’ notice of planned sale or closure of the community.

Freddie Mac made a similar announcement in Fall 2021, moving from incentivizing borrowers to adopt TSLPs in 100 percent of their MHCs’ sites towards requiring all future borrowers who use Freddie-Mac lending to acquire or refinance MHCs to implement TSLPs on 100 percent of site leases. Enterprise applauds the GSEs for taking this action. In August 2021, Enterprise’s CEO and President Priscilla Almodovar sent a letter to FHFA’s Acting Director Sandra Thompson, urging the agency to make minimum standards for tenant protections mandatory – instead of only voluntary – in any MHC product offered by Fannie Mae and Freddie Mac.

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