Freddie Mac Sets LIHTC Equity Record with $675 Million in Affordable Multifamily Housing Investments

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported a record $675 million in Low-Income Housing Tax Credit (LIHTC) equity investments for 2021, supporting over 4,800 affordable rental units in underserved U.S. markets. The investment portfolio includes units for various special needs households, such as those impacted by homelessness and domestic violence. The Federal Housing Finance Agency raised the annual LIHTC cap to $850 million, enabling Freddie Mac to quickly scale its program, adding an additional $175 million to its investments. This funding enhances affordable housing supply in crucial communities.

Positive

• Closed a record $675 million in LIHTC equity investments in 2021.
• Supported over 4,800 affordable units in diverse and underserved markets.
• Scaled LIHTC equity program rapidly following FHFA cap increase to $850 million.
• Additional $175 million from 2021 investments will roll over into 2022.

Negative

• None.

Program Supported Over 4,800 Affordable Rental Units in Diverse and Underserved Markets in 2021

MCLEAN, Va., Feb. 08, 2022 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) closed a record $675 million in Low-Income Housing Tax Credit (LIHTC) equity investments in 2021, funding over 4,800 affordable units in diverse and underserved markets across the United States. The investments include a new 162-apartment community near areas devastated by fires in Central California, affordable rental homes for farmworkers in rural Washington and the Yurok Indian Tribe in Northern California, and other affordable housing units in urban areas like Tulsa, Oklahoma and Los Angeles.

Beyond affordability, several of the financed properties include units designated for special needs households, including youth and families experiencing homelessness, young people aging out of foster care, survivors of domestic violence, people with disabilities, or people with HIV or AIDS.  

“Freddie Mac’s LIHTC equity investment program benefits those impacted the most by the affordable housing crisis in America,” said Steve Johnson, vice president of Small Balance Loan and Targeted Affordable Sales & Investments at Freddie Mac. “Together with our LIHTC syndicators we are preserving and creating affordable housing supply in the most underserved communities in America.”

In September, the Federal Housing Finance Agency (FHFA) raised the annual LIHTC equity investment cap from $500 million to $850 million. Freddie Mac rapidly scaled its LIHTC Equity program, adding an additional $175 million to its 2021 investments at lightning speed. The unused balance of $175 million from 2021 will roll over into 2022, allowing Freddie Mac to further grow its LIHTC equity investments in the year ahead.

“We snapped into action the day we got the green light to ramp up our LIHTC equity investments, and I could not be prouder of how quickly we were able to add volume,” said Steve Gildersleeve, the Freddie Mac production director who leads the LIHTC Equity Team.

“This work is incredibly impactful, and we’re thrilled by the opportunity to continue growing the LIHTC Equity program to serve more underserved communities across the country,” added Nikki Harvey, director of Multifamily Underwriting at Freddie Mac.

Freddie Mac Multifamily is the nation's multifamily housing finance leader. Historically, more than 90% of the eligible rental units we fund are affordable to families with low-to-moderate incomes earning up to 120% of area median income. Freddie Mac securitizes about 90% of the multifamily loans it purchases, thus transferring the majority of the expected credit risk from taxpayers to private investors.

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: Mike Morosi
(703) 918-5851
Michael_Morosi@FreddieMac.com
Erin Mancini
(703) 903-1530
Erin_Mancini@FreddieMac.com

FAQ

What was Freddie Mac's total investment in LIHTC equity in 2021?

Freddie Mac closed a record $675 million in Low-Income Housing Tax Credit (LIHTC) equity investments in 2021.

How many affordable rental units did FMCC support in 2021?

FMCC supported over 4,800 affordable rental units in 2021.

What new cap did the FHFA set for LIHTC equity investments?

The Federal Housing Finance Agency raised the annual LIHTC equity investment cap from $500 million to $850 million.

What types of households were included in Freddie Mac's affordable housing units?

The financed properties include units for special needs households, including youth experiencing homelessness and families affected by domestic violence.

What will happen to Freddie Mac's unused LIHTC funds from 2021?

The unused balance of $175 million from 2021 will roll over into 2022, allowing further growth in LIHTC equity investments.