Freddie Mac, which recently re-entered the Low-Income Housing Tax Credit market for the first time in nearly 10 years, is continuing its push back into LIHTC investing.
The government-sponsored enterprise announced Monday that it closed its first LIHTC Fund with Hudson Housing Capital and its first investment in that fund.
This is Freddie Mac’s second investment in an LIHTC Fund in less than a month.
According to the GSE, the Hudson Housing Tax Credit Fund will invest all over the country to “create and preserve affordable homes.”
The fund will provide as much as $100 million in targeted affordable housing investments, with more investments possible as additional transactions are closed.
The fund also plans to focus on underserved areas, such as rural communities, as well as developments that provide intensive supportive services to their residents.
Freddie Mac said that it chose to partner with Hudson Housing Capital because its “deep expertise” with the LIHTC program and its “commitment to serving communities in need.” According to the GSE, in the last 20 years, Hudson has invested $5 billion in tax credit equity to finance homes.
And the new fund has already begun to finance affordable housing developments.
According to Freddie Mac, the Hudson Housing Tax Credit Fund is making a $17.5 million LIHTC equity investment for Lord Road Apartments, which will provide 324 homes in San Antonio, Texas.
The apartment development will range from one- to four-bedrooms and offer homes to very low-income families that earn between 50% and 60% of the area’s median income.
“We are excited to partner with Hudson Housing Capital on this fund, which will invest in affordable housing projects across the country,” said David Leopold, vice president for targeted affordable sales investments.
“Lord Road Apartments, the first transaction within this fund, will provide 324 quality, affordable housing units for very low-income families in the growing San Antonio community,” Leopold added. “We look forward to future investments that will provide needed capital for developers that are working to provide housing in similar areas across the country.”
Freddie Mac is also providing $26 million in permanent debt financing for the development.
“Our partnership with Freddie Mac will help us fund attractive and affordable housing for diverse communities throughout the nation,” Sam Ganeshan, managing director, Hudson Housing Capital, said. “The Lord Road Apartment development in San Antonio is the first of many such investments that will make affordable housing more available to low and moderate income families.”