The new cap structure will allow each firm to invest up to $100 billion in multifamily projects over the next five quarters. At least 37.5% of that investment must be for affordable housing.
The GSE is trying to gather all the stakeholders of the affordable housing “ecosystem,” including lenders, counselors, local housing agencies, and real estate professionals, under a single umbrella.
The new transaction will offer LIHTC lenders an additional source of liquidity in a tight market. A San Francisco transaction tests the waters to see if the new security floats.
Fannie Mae stepped up its efforts to increase the supply of affordable housing, announcing earlier this week that it was increasing the loan limit for multifamily small mortgage loans from $3 million to $6 million.
Freddie Mac announced late last month that it had closed a deal with RBC Capital Markets to create a $180 million low-income housing tax credit fund. The fund, Freddie’s fourth LIHTC deal since re-entering the market last year after a decade’s absence, has already made several investments.
Merchant Capital, an affordable housing lender based in Carmel, IN, announced in late December that it used Freddie Mac’s first official non-LIHTC forward commitment to secure financing for a $19.7 million workforce housing development in Rochester, MN.