Freddie Mac has closed a Low-Income Housing Tax Credit (LIHTC) fund with CAHEC, a nonprofit regional equity syndicator, to invest in the development and preservation of affordable rental housing.
According to Freddie Mac, over 20 million households across the US are “cost-burdened,” paying more than 30% of their income for housing. Eleven million of these households are spending more than 50% of their income on housing.
The LIHTC program has been financing affordable rental housing nationwide to address this issue. The closing is the GSE’s sixth LIHTC fund since re-entering the market in 2018.
The Freddie Mac-CAHEC fund will give priority to transactions in areas that have been underserved over the past 10 years, including rural communities and developments that give “intensive, supportive” services for their residents.
The fund has already provided $50 million in selected affordable housing investment across eight properties – in North Carolina (three properties), Kentucky (two), Tennessee (two), and in West Virginia (one). Overall, the investments support 441 units of LIHTC housing in some of the most underserved communities in the country.
“Freddie Mac is proud to partner with CAHEC as a LIHTC syndicator, and our fund is already supporting affordable housing in rural and underserved markets,” said David Leopold, vice president of targeted affordable sales and investments at Freddie Mac. “From Middle Appalachia to rural North Carolina, the investments we are making will help upgrade housing stock while preserving affordability for low-income individuals and families in need of decent places to live.”
“CAHEC is thrilled to partner with Freddie Mac as a conduit for furthering their LIHTC equity investment goals,” said CAHEC President and CEO Dana Boole. “Synergy with our respective missions, outlooks on affordable housing, commitment toward 'duty to serve' communities and our vibrant corporate cultures, were all drivers to creating, and now furthering, this thriving relationship.”