Freddie Mac Multifamily has launched a new pilot program to help preserve affordable housing and protect working families from rising rents across the nation, reports Christine Serlin in MultiFamily Executive (MFE), sister publication to Affordable Housing Finance.
In return for low-cost loans under the program, borrowers must voluntarily reduce or maintain the majority of a property’s rents at levels affordable to households earning 80% or less of the area median income (AMI) for the life of the loans, usually seven to 10 years.
Using its existing Multi-Asset Commitment structure, Freddie Mac Multifamily has partnered with Salt Lake City–based Bridge Multifamily Fund Manager, an affiliate of Bridge Investment Group, on this first-of-its-kind transaction in conjunction with Wells Fargo Multifamily Capital and KeyBank Real Estate Capital.
Under the pilot, Freddie Mac will aggregate up to $500 million worth of Capital Markets Execution program loans over a one-year period and then put all the social-impact loans into one securitization, for which Bridge will be required to purchase the subordinate bonds. Wells Fargo will originate $400 million of the commitment, with KeyBank originating the remainder.
The story is part of the Investing in What's Next series sponsored by Freddie Mac Multifamily.
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