WASHINGTON–From the Irony Dept: Fannie Mae is being chastised for attempting to purchase more home than it can afford.
The Inspector General of the Federal Housing Finance Agency, which oversees both Fannie Mae and Freddie Mac under federal conservatorship, has released a highly critical report on Fannie’s plans to build a new headquarters in downtown Washington. The report casts doubts on plans for the so-called Midtown Center, which include spiral staircases, rooftop decks and three glass-enclosed walkways, as being “appropriate for an agency in conservatorship.”
The report, from IG Laura Wertheimer, says that the cost to build the new 679,0000-square-foot Fannie Mae headquarters had risen since January of 2015 to $151 million up from $115 million. All told, the 15-year cost of relocation of Fannie Mae’s headquarters, the construction of the new building and the lease will top $770 million, according to the OIG. The OIG report focused in particular on the three glass-enclosed bridges at the property, of which Fannie Mae will bear about 70% of the costs to construct, totaling about $15 million.
A Fannie Mae spokesperson suggested that despite the rising construction costs identified in the OIG report, the move to Midtown Center will still save taxpayers about $330 million over the next 15 years as the agency consolidates its offices in the Washington area into the more energy-efficient space.