Fannie Freddie requiring radon testing multifamily properties indoor air

Fannie Mae and Freddie Mac are requiring more and more radon testing on multifamily properties.

What is Radon?

Radon, as described by the Federal Housing Finance Agency (FHFA), is an “invisible, odorless, and tasteless gas that comes from the breakdown of uranium inside the earth.

Radon is a carcinogen, and extended exposure may be linked with an increased risk of lung cancer. Where present in soils, radon exposure can occur by breathing air entering buildings through cracks and gaps in walls and floors.” It is an indoor air quality issue and a health hazard.

Updated Requirements

On January 19, 2023, the FHFA announced an update to Fannie Mae and Freddie Mac’s multifamily radon requirements and standards. Radon is of particular importance to multifamily entities due to the typical accumulation of radon on ground level dwellings. Director Sandra L. Thompson said these updated requirements “will help ensure that multifamily properties with hazardous levels of radon are more accurately identified and properly mitigated.”

Here are the updated standards:

– Enterprise-backed multifamily properties will require radon testing, regardless of where the property is located (subject to some exceptions and deferrals).

– The amount of required testing from 10% to 25% of ground floor units.

– An environmental professional is required to oversee radon testing. Some states (Including California) require an additional radon certification.
– The environmental professional or property representative is required to notify tenants of radon testing.

– Additional guidance for lenders and environmental consultants to be provided on the Enterprises’ radon standards. As part of such guidance, the Enterprises will reinforce the need for compliance with state and local radon laws.