NEW YORK -- The Federal National Mortgage Association, the AFL-CIO, and the Department of Housing and Urban Development have announced an investment package to finance the construction of 12,000 housing units for people with low incomes.
The plan would use money from the union organization's housing investment trust to help finance the construction. The union investors would receive a Fannie Mae security in return.
The income from the rental units will be guaranteed by so-called Section 8 money from HUD.
Officials stressed that while the approach was unique, it poses no unusual risks for either Fannie Mae or AFL-CIO pension holders.