On Monday, Freddie Mac announced a new Low-Income Housing Tax Credit (LIHTC) Fund with National Equity Fund (NEF), which is responsible for financing the vast majority of affordable rental housing across the United States. Within the fund, three investments have been initiated to help provide supportive housing for individuals experiencing homelessness and populations displaced by natural disasters.
David Leopold, VP of Targeted Affordable Sales & Investments at Freddie Mac, said that the “National Equity Fund has a more than 30-year track record of making investments that help the most underserved communities, and Freddie Mac is very proud to aid that mission through one of our LIHTC Equity funds.” The investments we have made through the fund thus far are making home possible for those displaced by Hurricane Harvey and individuals experiencing homelessness in some of the most housing-challenged communities in the country.”
A $15 million LIHTC equity investment in Houston’s New Hope Housing’s Dale Carnegie development will provide housing and supportive services to 170 individuals and families displaced by Hurricane Harvey. The other two are aimed at helping the homeless and Veterans in the Los Angeles area. One is for Skid Row Housing in Los Angeles for an estimated 100 homeless veterans and special needs individuals. A $19.6 million LIHTC equity investment in Skid Row Housing Trust’s Flor 401 Lofts development will provide both housing and supportive services. The other, A $26.5 million LIHTC equity investment in Hollywood Community Housing’s Florence Mills Apartments, will help provide supportive housing South Los Angeles, an area with a very high homeless rate. Thirteen of the 74 units will be designated for homeless veterans.
More than 20 million households across the country pay more than 30 percent of their income for housing. Eleven million are paying more than 50 percent of their income for housing. Freddie Mac and NEF are working together to address this vast and growing need through the Low-Income Housing Tax Credit program. This effort is designed to make homes possible for millions of families and individuals by providing mortgage capital to lenders.
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