Enhanced radon standards for Fannie Mae and Freddie Mac Properties 

Mar 28, 2024

Ensuring tenant safety through mandatory testing and expert guidance 

After June 30, 2023, multifamily properties with loan applications will require additional radon testing due to new regulations. 

The Federal Housing Finance Agency (FHFA) has recently implemented enhanced radon standards for Fannie Mae and Freddie Mac properties. These new regulations necessitate additional radon testing for multifamily properties with loan applications received after June 30, 2023. Radon, an invisible and odorless gas resulting from uranium decay, can infiltrate breathing air through cracks and gaps in buildings, posing health risks, including an increased chance of lung cancer. Ensuring tenant safety remains a top priority for the FHFA and the Enterprises, driving the implementation of robust radon testing requirements.  

Key regulatory updates: 

Mandatory testing: Regardless of location, radon testing is required for every multifamily mortgage loan unless an exemption or deferral is applicable. Multifamily properties generally comprise five or more units.  

Increased testing percentage: The required testing has been raised from 10 percent to 25 percent of ground contact units. Compliance with state and local regulations is essential. In case of conflicting requirements, the Lender should adhere to the most stringent standard while maintaining compliance with state and local regulations. 

Environmental professional management: Environmental professionals are authorized to oversee the radon testing process. They can conduct the 25 percent radon sampling when state-compliant testing is not mandatory.  

Tenant notifications: Environmental professionals or property representatives are required to provide tenant notifications regarding radon testing.  

Why choose EBI Consulting? 

For over 30 years, EBI Consulting has been a trusted provider of industry-leading radon services. We serve multifamily lenders, property managers, and real estate investors engaged in HUD, Fannie Mae, Freddie Mac, and non-agency transactions. Our expertise offers you the following advantages:  

  • Nationwide mobilization: We swiftly deploy local assessors and testers across the country to meet your radon testing needs.  
  • Assured compliance: Our services ensure lender or agency compliance, enabling you to navigate the regulatory landscape seamlessly.  
  • Guidance and education: Throughout the testing period, we provide comprehensive support, guiding and educating your property management staff and tenants. 

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