Freddie Mac’s Next Social Bond Offering Supports Affordable Seniors Housing
Freddie Mac (OTCQB: FMCC) plans to issue $92.8 million in Social Bonds to finance 1,500 affordable senior housing units across four properties in Arizona. These units are targeted toward seniors with incomes at or below 50% of the area median income, reinforcing Freddie Mac's commitment to affordable multifamily housing. The loans are facilitated by Berkadia Seniors Housing & Healthcare for properties owned by Christian Care, Arizona's largest nonprofit provider of seniors housing. This issuance aims to provide socioeconomic opportunities and improve affordable housing accessibility.
- Issuance of $92.8 million in Social Bonds to finance 1,500 affordable senior housing units.
- More than half of the units are affordable to seniors with incomes at or below 50% of area median income.
- Partnership with Christian Care, enhancing the provision of essential services to low- and moderate-income seniors.
- None.
MCLEAN, Va., April 18, 2022 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) Multifamily today announced that it will soon go to market with the issuance of
“Freddie Mac is committed to supporting affordable multifamily seniors housing through this social bond issuance,” said Robert Koontz, senior vice president of Freddie Mac Multifamily Capital Markets. “We continue to use our innovative execution paths to support our affordable housing mission and provide investors the opportunity to do so as well.”
The loans originated by Berkadia Seniors Housing & Healthcare are for properties owned by Christian Care, which is the largest provider of non-profit seniors housing and healthcare services in Arizona. Christian Care focuses on providing housing for low- and moderate-income seniors.
This Social Bonds structured transaction is a REMIC – FHMR 2022-P013 – issuance backed by a pool of Multifamily PCs.
“Freddie Mac is thrilled to provide financing that supports affordable housing for more than 1,500 Arizona seniors,” said Kathy Ryser, senior director of Underwriting for Freddie Mac’s Multifamily Seniors Housing Team. “This work aligns directly with our mission and helps meet a tremendous need in the market.”
According to the company’s Social Bonds Framework, the proceeds of Freddie Mac’s Social Bonds are used either to provide liquidity to social impact financial institutions for financing of affordable housing or to finance multifamily properties originated by the Freddie Mac Multifamily Optigo® network that are affordable to an underserved population. Institutions receiving liquidity and properties financed from Social Bonds proceeds are expected to foster various socioeconomic opportunities for residents and their communities, in addition to providing affordable housing to low- to moderate-income families.
Read more about Freddie Mac Multifamily’s Social Bonds here.
Freddie Mac Multifamily is the nation's multifamily housing finance leader. Historically, more than
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.
MEDIA CONTACT: Erin Mancini
(703) 903-1530
Erin_Mancini@FreddieMac.com
FAQ
What is the purpose of Freddie Mac's $92.8 million Social Bonds issuance?
How many units are being financed for seniors in Arizona?
Who is the largest provider of non-profit seniors housing involved in this initiative?
What income level qualifies seniors for these affordable housing units?
What impact does this Social Bonds issuance have on the community?
