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MCLEAN, Virginia, September 01, 2021 (GLOBE NEWSWIRE) – Freddie Mac (OTCQB: FMCC) will begin increasing his capital investments in the Low Income Housing Tax Credit (LIHTC), which supports affordable housing in all United States. The move comes in response to the Federal Housing Finance Agency’s (FHFA) announcement that it has raised the annual limit on Freddie Mac’s LIHTC stock investments from $ 500 million to $ 850 million. Freddie Mac has provided approximately $ 500 million in LIHTC Equity investments each year since re-entering the market in 2018.
“Freddie Mac has built a strong LIHTC equity investment program, with more than 120 investments in 26 states, Puerto Rico and Guam since 2018,” said Debby Jenkins, executive vice president and head of multi-family for Freddie Mac. “This work has supported the preservation or creation of thousands of rental housing units, meeting the needs of underserved communities across the country. Today’s announcement by FHFA will allow us to build on this work in the years to come and do much more to address the enormous need for additional safe and affordable housing.
Freddie Mac’s LIHTC Equity Investments are already supporting affordable housing in the United States. Here are some recent examples:
Tackling persistent poverty in Madison, FloridaFreddie Mac’s investment in Hilltop Apartments will support the occupied rehabilitation of an existing 72-unit multi-family building located in Madison, Florida. The property is made up of 15 one-story residential buildings and one community building. The 72 units will be reserved for households whose income is equal to or less than 40% and 60% of the zone’s median income (AMI). Four units are reserved for households with special needs targeting a homeless person, a survivor of domestic violence, a person with a disability and an aging youth outside the foster family. Support services will be provided by Royal American Management, Inc., the project sponsor.
Development of a supervised housing project in Philadelphia Freddie Mac’s investment in Mamie Nichols Townhomes supports new construction of a multi-family, scattered site development in the Point Breeze neighborhood of South Philadelphia. Eleven efficiency and one-bedroom units will be available for veterans with special needs, while 22 two- and three-bedroom units will be available for low-income families. The 33 units are rented to households limited or below 20 to 60% of the MAI. Support services will be provided by the project sponsor, the Women’s Community Revitalization Program, a nonprofit organization based in Philadelphia, Pennsylvania.
Building tribal housing in Arcata, California Freddie Mac’s investment in Yurok Homes # 3 supports the new construction of 36 multi-family housing units located 10 miles from Eureka, California on land owned by the Yurok Indian Housing Authority (YIHA). The development will include 12 two-story structures comprising of apartments, townhouses and rental housing. The property will target families earning no more than 30-50% of the MAI. The 36 units will receive a tribal grant allowing tenants to pay 25% of their income for rent. Social services will be provided free of charge to tenants.
Freddie Mac created a interactive map which details each of its LIHTC stock investments, including property names, locations, number of units funded and other key facts.
Freddie Mac Multifamily is the national leader in multi-family housing finance. Historically, over 90% of the eligible rental housing we fund is affordable for low to moderate income families earning up to 120% of the region’s median income. Freddie Mac securitizes around 90% of the multi-family loans he purchases, thereby shifting the majority of the credit risk expected from taxpayers to private investors.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our inception by Congress in 1970, we’ve made housing more accessible and affordable for buyers and renters in communities across the country. We are building a better housing finance system for buyers, tenants, lenders and taxpayers. Learn more about FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
MEDIA CONTACT: Mike Morosi(703) 918-5851[email protected]
Source: Freddie Mac