Skip to main content

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

Written by Customer Service on . Posted in Public Companies.

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

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.