Freddie Mac Multifamily’s Targeted Affordable Housing Loans Increased by Nearly 60% in 2022
January 18, 2023
Source: Freddie Mac
Freddie Mac Multifamily’s 2022 production volume totaled $73.8 billion, including a record of nearly $1 billion in Low-Income Housing Tax Credit (LIHTC) equity investments. The agency also increased its targeted affordable loan purchases for properties that have a regulatory rent restriction or subsidy by close to 60% to a record $15.3 billion in 2022, up from $9.6 billion in 2021.
“In a year marked by record rent inflation and a rental housing supply crisis, Freddie Mac Multifamily prioritized its affordable housing mission,” said Kevin Palmer, head of Freddie Mac Multifamily. “Not only did we exceed our aggressive affordable housing goals, but we also set a record for Targeted Affordable Housing, ramped up our LIHTC equity investments by 45% and made nearly $2 billion in forward commitments designed to bolster future housing supply.”
Freddie Mac exceeded all its FHFA-set affordable housing goals. Of the 693,000 rental units financed through loan purchases, more than 420,000 were affordable to low-income households earning up to 80% of Area Median Income (AMI), surpassing the 415,000-unit goal. Units affordable to very low-income households earning up to 50% of AMI totaled nearly 128,000, representing 145% of the 88,000 unit goal. Freddie Mac also met 118% of its low-income housing goal for properties with 5 to 50 units with 27,103 units.
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