Freddie Mac Provides $548M for Affordable Housing Units, Proves Conservator’s Commitment to Multifamily

By Anuradha Kher, Online News EditorMcLean, Va.–With the collaboration of Citi Community Capital and Municipal Capital Markets, Citi recently closed $548 million in its first Tax-Exempt Bonds Securitization (TEBS) with Freddie Mac. This is the second largest TEBS transaction in Freddie Mac’s history and one that will support more than 8,800 affordable housing units.The collateral to be securitized consists of a pool of predominantly fixed-rate, tax-exempt and taxable multifamily housing revenue bonds and is comprised of 79 tax-exempt bonds and nine taxable “tail” bonds.“The transaction is secured by 51 multifamily properties, all Low-Income Housing Tax Credit (LIHTC) properties,” says Mike May, multifamily senior vice president at Freddie Mac. “Citicorp Funding Inc. will act as Servicer and Capmark Finance Inc. as subservicer. This transaction demonstrates how Freddie Mac continues to provide much-needed liquidity to the multifamily mortgage market. When it comes to running our business, we are not missing a beat.”Hartley Hall, director of Citi Community Capital, adds, “The fact that we could close a $548 million transaction with Freddie Mac three days after the appointment of a conservator is a testament to Freddie Mac’s and the conservator’s commitment to remain active in the multifamily space despite��� these challenging times. It also demonstrates the depth of Citi’s relationship with Freddie Mac and the quality, velocity and liquidity of the portfolio originated at Citi on behalf of its valued client.”