Freddie Mac Closes LIHTC Fund with Hudson Housing Capital
The fund's first investment comes in the form of a $17.5 million LIHTC equity for Lord Road Apartments, which will provide 324 low-income units in San Antonio.
Freddie Mac has closed its first Low-Income Housing Tax Credit Fund with Hudson Housing Capital LLC and its first investment within that fund. This marks Freddie Mac’s second LIHTC fund since re-entering the market in September, and the first fund managed by Hudson.
The Hudson Housing Tax Credit Fund will focus on transactions in areas that have been underserved over the past 10 years, such as rural communities, developments that provide intensive supportive services to residents, and 4 percent LIHTC financing. The fund will provide a maximum of $100 million in targeted affordable housing investments, with more possible as additional deals are closed.
The Fund’s first investment comes in the form of a $17.5 million LIHTC equity for Lord Road Apartments, which will provide 324 units in San Antonio. Freddie Mac is also providing $26 million in permanent debt financing for the development. The project is sponsored by NRP Enterprises. The apartments will range from one- to four-bedroom floorplans, serving low-income families earning between 50 and 60 percent of the area median income.
“With the formation of this new fund and the Lord Road investment, our LIHTC equity program is truly hitting stride. Our investments will create and preserve affordable rental housing in a diversity of areas, including rural markets that historically have been overlooked, and fast growing regions suffering from dramatic shortages of housing supply,” David Leopold, vice president for Targeted Affordable Sales & Investments at Freddie Mac, told Multi-Housing News. “These are the first of many LIHTC equity investments and funds we will announce in the months to come. Each will incentivize private investment in affordable housing, deliver much-needed cash equity to owners of affordable properties and help ensure quality, affordable housing is available for low-income renters who need it.”
Image courtesy of Freddie Mac