Freddie Mac Multifamily Announces Social Bonds Deal Supporting Housing for the Intellectually and Developmentally Disabled

Freddie Mac (FMCC) has issued $230 million in Social Bonds aimed at supporting 1,267 rental homes across 39 states and the District of Columbia for individuals with intellectual and developmental disabilities.

Rhea-AI Summary

Freddie Mac (FMCC) has issued $230 million in Social Bonds aimed at supporting 1,267 rental homes across 39 states and the District of Columbia for individuals with intellectual and developmental disabilities. This transaction addresses the pressing need for community-based housing, providing approximately 90% of the units to individuals earning 50% of the area median income. The issuance is backed by a pool of Multifamily PCs and aligns with the company's commitment to social impact, fostering affordable housing and socioeconomic opportunities for underserved communities.

Positive

• Issuance of $230 million in Social Bonds supports 1,267 rental homes for individuals with disabilities.
• Approximately 90% of the provided units are affordable to those earning 50% of area median income.
• Social Bonds transaction enhances Freddie Mac's commitment to innovative housing solutions for underserved communities.

Negative

• None.

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MCLEAN, Va., June 08, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) Multifamily today announced the issuance of $230 million in Social Bonds supporting 1,267 rental homes across 39 states and the District of Columbia for individuals with intellectual and developmental disabilities. The proceeds from these Social Bonds help address the significant shortage of community-based homes critical to the “deinstitutionalization” of care for individuals with disabilities. The properties provide 4,462 beds, approximately 90% being affordable to people with very low incomes making 50% of the area median income and allow individuals with disabilities to live and work in their communities.

“Freddie Mac Multifamily is incredibly proud to announce our first Social Bonds transaction to provide housing for individuals with intellectual and developmental disabilities,” said Robert Koontz, senior vice president of Capital Markets for Freddie Mac Multifamily. “This transaction represents our commitment to ensuring safe, affordable housing that meets the needs of the community it serves. Our Impact Bonds, and specifically the Social Bonds framework, encourage innovation to provide solutions that meet the unique needs of underserved communities.” 

This Social Bonds structured transaction is a REMIC – FHMR 2021-P009- issuance backed by a pool of Multifamily PCs.

According to the company’s Social Bonds Framework, the proceeds of Freddie Mac’s Social Bonds are used either to provide liquidity to social impact financial institutions for financing of affordable housing or to finance multifamily properties originated by the Freddie Mac Multifamily Optigo^® network that are affordable to an underserved population. Institutions receiving liquidity and properties financed from Social Bonds proceeds are expected to foster various socioeconomic opportunities for residents and their communities, in addition to providing affordable housing to low- to moderate-income families.

Read more about Freddie Mac Multifamily’s Social Bonds here.

Freddie Mac Multifamily is the nation's multifamily housing finance leader. Historically, more than 90% of the eligible rental units we fund are affordable to families with low-to-moderate incomes earning up to 120% of area median income. Freddie Mac securitizes about 90% of the multifamily loans it purchases, thus transferring the majority of the expected credit risk from taxpayers to private investors.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.

MEDIA CONTACT: Erin Mancini
(703) 903-1530
Erin_Mancini@FreddieMac.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the recent Freddie Mac (FMCC) Social Bonds issuance?

Freddie Mac issued $230 million in Social Bonds to support 1,267 rental homes for individuals with intellectual and developmental disabilities.

How many states benefit from Freddie Mac's Social Bonds?

The Social Bonds benefit individuals across 39 states and the District of Columbia.

What percentage of the units from Freddie Mac's Social Bonds is affordable?

Approximately 90% of the units are affordable to individuals earning 50% of the area median income.

What is the purpose of the funds from Freddie Mac's Social Bonds?

The funds aim to address the housing shortage for individuals with disabilities and provide socioeconomic opportunities.