Freddie Mac has closed a low-income housing tax credit (LIHTC) fund with CAHEC (Community Affordable Housing Equity Corp.) and initiated several investments within the fund.
The fund is Freddie Mac’s sixth since re-entering the LIHTC market in 2018 and its first fund that will be managed by CAHEC.
It will invest in the creation and preservation of affordable rental housing, with a focus on transactions in areas that have been underserved over the past decade, such as rural communities and developments that provide intensive supportive services for their residents.
The fund has thus far provided $50 million in targeted affordable housing investments across eight properties, including three in North Carolina, two in Tennessee, two in Kentucky, and one in West Virginia. The investments in total support 411 units of LIHTC housing in some of the most underserved communities in America. Four investments are in Duty to Serve rural areas, including Middle Appalachia.
“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.”
Investing in West Virginia
One such investment is for Jevue Club Apartments in New Martinsville, W.Va. Freddie Mac’s $4.6 million LIHTC equity investment will help modernize the rental community of 40 two-bedroom and one-bathroom apartments. Ten units will be restricted to households earning at or below 40% of the area median income (AMI), with the remaining restricted at 60% of the AMI. Of the 40 units, 31 receive rental assistance through the U.S. Department of Agriculture’s Rural Development Sec. 521 rental assistance program.
Columbus, Ohio-based Buckeye Community Hope Foundation, an experienced LIHTC developer, is working with Woda Construction to redevelop the apartments. Renovations totaling more than $70,000 per unit are providing much-needed modernization to the complex. Although well-maintained, the five single-story apartment buildings were constructed in 1977. Many fixtures and design elements, including orange countertops and globe light fixtures, are holdovers from that era, according to officials.
The property is in a scenic location with views of the Ohio River and mountains. It’s also within walking distance of stores and restaurants, providing a good quality of life for residents, the majority of whom are older than 55.
“CAHEC is thrilled to partner with Freddie Mac as a conduit for furthering their LIHTC equity investment goals,” said Dana Boole, president and CEO. “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.”
Created in 1992, CAHEC ranks as one of the largest nonprofit regional equity syndicators in the United States. Headquartered in Raleigh, N.C., it has raised and committed more than $2.2 billion toward the development of 678 properties and more than 31,000 units of affordable housing.
