Freddie Mac, which recently re-entered the Low-Income Housing Tax Credit market for the first time in nearly 10 years, is making another investment in affordable housing.
The government-sponsored enterprise announced this week that it closed its first LIHTC Fund with Boston Financial Investment Management and made its first investment in the fund.
The investment marks Freddie Mac’s third LIHTC investment in the last few months. Last month, Freddie Mac inked a similar deal with Hudson Housing Capital.
According to Freddie Mac, this latest investment will support the “creation and preservation of affordable homes across the country.” The fund will focus on areas that have been underserved in the last 10 years.
Freddie Mac said that the fund will provide as much as $100 million for affordable housing, with more investments possible as additional transactions are closed.
As part of the deal, Freddie Mac and Boston Financial announced the first affordable housing transaction through the new fund, a $5.5 million LIHTC equity investment for the rehabilitation of Riverwood Village Apartments — a Section 8 property in Russellville, Arkansas.
The apartment property consists of 72 units in eight, two-story walk-ups that were built in 1976. The money will be used for full exterior and interior renovations, including installation of energy efficient windows, HVAC system upgrades, new energy efficient lighting, new flooring, and kitchen and bathroom replacements.
“We are pleased to be joining with Boston Financial Investment Management on a LIHTC syndicator fund that will be instrumental in creating and preserving affordable rental housing across the country,” said David Leopold, vice president of Targeted Affordable Sales & Investments at Freddie Mac.
“The 72 affordable housing units at Riverwood Village were built more than 40 years ago and are in serious need of rehabilitation,” Leopold continued. “The investment we are making will substantially improve the quality of life for the families that call Riverwood Village home.”
Additionally, several community amenities will be upgraded or added as well, including a new playground, community rooms, a fitness center, a business center, a library, and laundry rooms. Six of the units will also be converted to be accessible to persons with disabilities.
“The preservation and rehabilitation of Riverwood Village will have a tremendous positive impact on the families that live there as well as the surrounding community of Russellville, Arkansas,” said Sarah Laubinger, executive vice president of Boston Financial. “We are honored to be one of Freddie Mac’s select LIHTC syndicator partners and look forward to working together to further our shared mission of bringing safe, quality and affordable housing to communities across the country.”