Editor's Note: This story was revised Sept. 19, 2022.

Freddie Mac Multifamily announced the creation of a low-income housing tax credit (LIHTC) fund with Berkadia Affordable Tax Credit Solutions aiding the agency’s effort to invest up to $850 million in equity annually to create and preserve affordable housing across the country.

The new fund will make investments in underserved communities, including those in rural areas, and will prioritize housing that provides intensive supportive services for residents.

“We are thrilled to announce Berkadia as a LIHTC syndicator and look forward to working together to create and preserve affordable housing in underserved communities,” said Steve Johnson, interim vice president of production and sales for Freddie Mac Multifamily. “These investments benefit those who are hit hardest by the affordable housing crisis and reflect our commitment to helping Americans access safe and affordable housing.”

With more than $10.5 billion in loan volume with Freddie Mac in 2021, Berkadia was ranked Freddie Mac's No. 1 Targeted Affordable Housing lender and No. 1 conventional lender, said the firms.

"Freddie Mac has been a valued partner to Berkadia for years, and we are thrilled to be at the forefront of their growing LIHTC equity investment platform," said David Leopold, senior vice president and head of Berkadia Affordable Housing. "Given our strong relationship and ongoing collaboration, we are confident in our ability to successfully deploy capital that will help residents across the country access quality affordable housing."

Freddie Mac set a record pace for LIHTC equity in 2021 with $675 million in investments that supported over 4,800 affordable rental units. The Federal Housing Finance Agency raised the annual LIHTC equity investment cap from $500 million to $850 million in September 2021, prompting Freddie Mac to scale its program. The unused balance of $175 million from 2021 rolled over into 2022, allowing Freddie Mac to further grow its LIHTC equity investments this year, according to officials.