State to Rescue Low-Cost Rentals

The California Housing Finance Agency said Wednesday that it has purchased Fannie Mae’s mortgage portfolio for $274 million in an effort to preserve low-income rentals statewide.

The portfolio contains 23,300 units at risk of being converted into market-rate housing.

The sale covers loans on 279 properties statewide, including 87 buildings in Los Angeles County. It also covers four Orange County buildings containing a total of 363 units.

During the next few months, the state will determine the number of owners who are planning to sell their properties, said Theresa Parker, executive director of the finance agency.

Parker said the state will try to assist sales by offering low-rate financing to nonprofit housing or community groups, allowing them to make stronger bids for the properties.