Freddie Mac today announced its re-entry into the Low-Income Housing Tax Credit (LIHTC) market as part of the newly launched Duty To Serve program, an initiative geared toward addressing persistent affordable housing problems by preventing foreclosures, responsibly expanding credit, educating future borrowers, counseling current borrowers and supporting affordable rental housing.

Freddie Mac’s first investment is expected to close in January 2018, with a $500 million annual investment cap. Freddie Mac will partner with and invest through experienced LIHTC syndicates, focusing mainly on markets that are often overlooked of underserved by most investors.

David Leopold

The LIHTC program provides incentives to multifamily property owners and investors to build and maintain quality affordable housing for low and very low-income households across the United States.

Property owners with qualifying properties will be given federal tax credits, and investors will have an opportunity to buy into those properties in order to take advantage of the tax credit as well.

The program puts cash equity into low-income housing properties, which reduces the debt burden for the development of new properties or the rehabilitation of existing affordable properties.

“Our LIHTC investment initiative will focus on affordable housing preservation, rural housing, markets with uneven or unpredictable liquidity, and other underserved areas that have been identified in our Duty to Serve plan,” said David Leopold, vice president of targeted affordable sales and investments at Freddie Mac Multifamily, in a statement.

“Doing so will have a significant positive impact on communities with some of the most serious affordable housing needs.

“Ultimately, we seek to provide better access to investment capital for developers, particularly those operating in underserved areas that are overlooked by other investors,” he added.

Email Marian McPherson.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×