Charlotte is one of three cities where Fannie Mae will offer lower financing to developers and rental property owners who agree to take on people using vouchers.

Charlotte, Dallas and Austin, Texas are cities where rents are rising sharply and there is no protection to prevent landlords from discriminating against tenants using vouchers.

The government-backed mortgage institution chose these three cities for its one-year pilot program.

“It’s a way to foster greater acceptance of Housing Choice vouchers…and, with that, greater equity and opportunity,” said Fannie Mae CEO Hugh Frater.

In Charlotte, one in five Housing Choice Vouchers, also known as Section 8, expire before holders can use them, according to Inlivian, formerly the Charlotte Housing Authority.

To be eligible, developments cannot already receive funding from other groups like Charlotte’s Housing Trust Fund, which require landlords to accept vouchers as a condition of funding. Fannie Mae will use Fair Housing Tests to monitor borrower compliance.

Fannie Mae will work more closely with Charlotte, Austin and Dallas on strategies, but the pilot spans across North Carolina and Texas.