First Investment Through Fund Will Rehabilitate Low-Income Apartment Community in Russellville, Arkansas
MCLEAN, Va., Nov. 28, 2018 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) announced today it has closed a Low-Income Housing Tax Credit (LIHTC) Fund with Boston Financial Investment Management (Boston Financial) and initiated its first investment within the fund. The closing marks Freddie Mac’s third LIHTC fund since re-entering the market in September, and the first fund managed by Boston Financial. The LIHTC program is responsible for financing the vast majority of affordable rental housing across the United States.
The Freddie Mac-Boston Financial fund will invest in the creation and preservation of affordable homes across the country. It will focus on transactions in areas that have been underserved over the past decade, such as rural communities, 4 percent LIHTC financing and developments that provide intensive supportive services for their residents. The fund will provide as much as $100 million in targeted affordable housing investments, with more investments possible as additional transactions are closed.
Today Freddie Mac and Boston Financial also announced the first affordable housing transaction financed through that fund, a $5.5 million LIHTC equity investment for the rehabilitation of Riverwood Village Apartments — a Section 8 family property in Russellville, Arkansas. Riverwood consists of 72 units within eight, two-story walk-ups originally built in 1976. The scope of work includes full exterior and interior renovations, including but not limited to installation of energy efficient windows, HVAC system upgrades, new energy efficient lighting, new flooring, and kitchen and bathroom replacements. Several community amenities will be upgraded or added as well, including a new playground, community rooms, a fitness center, a business center, and library and laundry rooms. Six of the units will be converted to be handicap accessible.
“We are pleased to be joining with Boston Financial Investment Management on a LIHTC syndicator fund that will be instrumental in creating and preserving affordable rental housing across the country,” said David Leopold, vice president of Targeted Affordable Sales & Investments at Freddie Mac. “The first investment through the fund will provide for a full renovation of Riverwood Village in Russellville, Arkansas. The 72 affordable housing units at Riverwood Village were built more than 40 years ago and are in serious need of rehabilitation. The investment we are making will substantially improve the quality of life for the families that call Riverwood Village home.”
Freddie Mac partnered with Boston Financial because of its deep expertise with the LIHTC program and commitment to serving communities in need through proprietary LIHTC funds.
“The preservation and rehabilitation of Riverwood Village will have a tremendous positive impact on the families that live there as well as the surrounding community of Russellville, Arkansas,” said Sarah Laubinger, executive vice president of Boston Financial. “We are honored to be one of Freddie Mac’s select LIHTC syndicator partners and look forward to working together to further our shared mission of bringing safe, quality and affordable housing to communities across the country.”
More than 19 million households across the country are cost-burdened, meaning they pay more than 30 percent of their income for housing. Eleven million are severely cost-burdened, paying more than 50 percent of their income for housing. Freddie Mac and Boston Financial are proud to be working together to address this vast and growing need through the Low-Income Housing Tax Credit.
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, investors and taxpayers. Learn more at FreddieMac.com, @FreddieMac and Freddie Mac's blog.
Since 1969, Boston Financial has focused on providing exceptional client service to its partners and has built one of the most experienced management teams in the affordable housing industry. To date, Boston Financial has raised and managed over $11 billion of low‐income housing and historic tax credit equity investments, comprising 2,400 properties and 220,000 units, making it one of the largest and most successful firms in the industry. Boston Financial is a wholly owned subsidiary of ORIX Corporation USA, a diversified financial services company headquartered in Dallas, TX with more than 1000 employees in 30 offices across the U.S. and Brazil. Known for providing innovative capital solutions to clients, ORIX USA has over $10 billion of assets and manages an additional $63 billion on behalf of clients. Its parent company, ORIX Corporation, is a Tokyo‐based international financial services company which has operations in 38 countries and regions and over 32,000 employees. With a market capitalization of $18 billion, ORIX Corporation is traded on both the Tokyo and New York Stock Exchanges. For more information on the ORIX family of companies, please visit www.ORIX.com.