McLEAN, VA—Freddie Mac has launched atax-exempt loan program for affordable housing development that isa variation on the 4% Low-Income Housing TaxCredit execution.
Essentially this is how it will work: a Freddie MacTargeted Affordable Housing seller or servicer,typically a lender, will make a direct loan to a government entitysuch as a city, county or state housing authority in exchange for atax-exempt note.
Freddie Mac will then purchase the tax-exempt loan from theseller. The city, county or state housing authority that issued thenote then lends the loan proceeds to a borrower to finance amultifamily housing community that has affordable rents.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
