GSEs Release New Radon Standards

The Federal Housing Finance Agency (FHFA) recently announced changes to Fannie Mae and Freddie Mac’s (the Enterprises) multifamily radon standards. NAR commented on this proposal in 2021 to express concerns about the cost and regulatory burden of these requirements. The new standards will go into effect for loan applications received after June 30, 2023 with certain exemptions:

1. Requiring radon testing at multifamily Enterprise-backed properties, regardless of property location, subject to some exemptions and deferrals.​
2. Increasing required testing from 10 percent of ground floor units to 25 percent of ground floor units.
3. Requiring the environmental professional or property representative to provide tenant notifications for radon testing.

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