Tenant Notice Rules That Come With a Fannie Mae or Freddie Mac Apartment Loan
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If your apartment building has a federally backed multifamily loan (from Fannie Mae, Freddie Mac or a HUD-insured lender), it is a "covered property" under the CARES Act, and the Act's notice provision, 15 U.S.C. 9058(c), says the landlord may not require a tenant to vacate before 30 days after giving a notice to vacate. The Act's 2020 eviction moratorium ended long ago, but that notice provision remains in the statute, and courts have applied it in eviction cases, with some disagreement about which evictions it covers. Separately, the Federal Housing Finance Agency announced in 2024 that new Fannie Mae and Freddie Mac multifamily loans would require 30-day notice of rent increases and lease expirations and a 5-day grace period for late rent, but it rescinded that policy in March 2025. State and local landlord-tenant law applies on top of all of this.
This guide explains what the financing changes for your operations and underwriting. For loan choice itself, see bridge vs. agency loans.
What is a covered property?
Under 15 U.S.C. 9058(a), a covered property is one that participates in certain federal housing programs (such as programs covered by the Violence Against Women Act's housing provisions, which include the Housing Choice Voucher program) or the rural housing voucher program, or that has a federally backed mortgage loan or a federally backed multifamily mortgage loan. A multifamily loan made, insured or guaranteed by a federal agency, or purchased or securitized by Fannie Mae or Freddie Mac, qualifies. Most agency-financed apartment buildings are therefore covered.
What does the 30-day notice rule say?
Subsection (c) says the lessor of a covered dwelling unit may not require the tenant to vacate before 30 days after the lessor gives a notice to vacate, and may not issue that notice until after the 2020 moratorium period. Since the moratorium is long over, the practical effect is the 30-day minimum notice. Some courts have applied it to evictions for nonpayment of rent; others have read it more broadly. Ask your eviction attorney how courts where the property is apply it, and use notice forms that comply.
If the building also has Housing Choice Voucher tenants, program rules add their own notice requirements.
What happened to the FHFA tenant protections?
In July 2024, FHFA announced that, for new multifamily loans backed by Fannie Mae or Freddie Mac, borrowers would have to give tenants 30 days' written notice of rent increases and lease expirations and a 5-day grace period for rent, with the requirement applying to loan applications signed on or after February 28, 2025. In March 2025, FHFA rescinded the policy. Read your actual loan documents, because a loan closed while the requirement was in effect may contain lease covenants, and check whether your lender's forms changed.
How should a sponsor plan for this?
- Eviction timelines. Add the 30-day federal notice to the state's own process when you estimate how long a nonpayment eviction takes, and use that in your bad debt and economic occupancy assumptions.
- Property manager forms. Confirm the manager's notices to vacate and lease templates comply with federal, state and local rules for an agency-financed building. See property management companies.
- Rent increase notices. Follow state and local notice periods. Many already require 30 days or more for some increases. See rent control laws.
- Lender requirements. Read the loan agreement's covenants on leases and compliance with laws, and keep records of notices in case the servicer asks.
What should investors see?
Investors evaluating an agency-financed deal should see eviction timelines in the underwriting that reflect federal and local notice rules, not a best case. Say in the offering documents if the loan carries tenant-related covenants.
How DoorRaise fits in
DoorRaise helps sponsors raise equity for apartment buildings with 5+ units from their friends and followers under Rule 506(b) or 506(c). It prepares the standard offering documents, forms the LLC, files Form D and state notices, and verifies accredited investors for 506(c) deals. Escrow is at Enterprise Bank & Trust, an FDIC-insured bank, and investors fund by wire only. See pricing. DoorRaise is not a law firm, broker-dealer, investment adviser, funding portal or bank.
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FAQ
Is the CARES Act eviction moratorium still in effect?
No. The 2020 moratorium period ended, but the separate 30-day notice to vacate provision for covered dwellings remains in the statute.
Does a bridge loan from a private lender make a building a covered property?
Generally not, unless the loan is made, insured, guaranteed or purchased by a federal agency or Fannie Mae or Freddie Mac, or the property participates in a covered federal housing program.
Do I need a 5-day grace period on a Fannie Mae loan?
Not under FHFA policy since the March 2025 rescission, unless your loan documents or state or local law require one. Check both.
Does the 30-day notice apply to lease non-renewals?
Courts differ on the scope. Ask a local eviction attorney.
Next step: see how loan terms affect your deal in syndication loan terms investors should check.
Sources
- 15 U.S.C. 9058, temporary moratorium on eviction filings (CARES Act section 4024)
- Multifamily Dive: FHFA reverses part of the renter protections tied to Fannie Mae and Freddie Mac loans (March 2025)
This article is general information, not legal advice. Landlord-tenant law varies by state and city. Talk to a local eviction attorney about your property. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.