Freddie Mac has closed its first Low-Income Housing Tax Credit (LIHTC) Fund with Hudson Housing Capital and its first investment within that fund.
“Our partnership with Freddie Mac will help us fund attractive and affordable housing for diverse communities throughout the nation,” said Sam Ganeshan, managing director, Hudson Housing Capital.
The closing marks Freddie Mac’s second LIHTC fund since re-entering the market earlier in September, and the first fund managed by Hudson. The LIHTC program finances the overwhelming majority of the country’s affordable rental housing.
The Hudson Housing Tax Credit Fund will invest nationwide to create and preserve affordable homes. It will focus on transactions in areas that have been underserved over the past decade, such as rural communities, 4 percent LIHTC financing, and developments that provide intensive supportive services to their residents. 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 has already begun to finance much-needed affordable housing. Today Freddie Mac and Hudson announced a $17.5 million LIHTC equity investment through the fund for Lord Road Apartments, which will provide 324 homes for residents of San Antonio, a growing city that is experiencing a material shortage of affordable rental housing. Freddie Mac is also providing $26 million in permanent debt financing for the development. The property’s sponsor is NRP Enterprises, a full-service developer, general contractor, and property manager with a portfolio of more than 20,000 units.
“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,” said Ganeshan.
Lord Road Apartments will range from one- to four-bedrooms and offer homes to very low-income families earning between 50 and 60 percent of the area median income. Currently, it is difficult for low- and moderate-income residents to find affordable homes in the area.
More than 19 million households across the country are cost-burdened, meaning they pay more than 30 percent of their income for housing. Eleven million are severely cost-burdened, paying more than 50 percent of their income for housing. Freddie Mac and Hudson are proud to be working together to address this vast and growing need through the Low-Income Housing Tax Credit.
