Freddie Mac Reaches $1 Billion in LIHTC Equity Investments
Freddie Mac recently announced it has topped the $1 billion mark in LIHTC equity investments after reentering the market in 2018. Freddie Mac has created an interactive map that details each of its LIHTC equity investments, including property names, locations, the number of units financed, and other key facts.
The Federal Housing Finance Agency (FHFA) allowed Freddie Mac and Fannie Mae to re-enter the LIHTC market as investors in late 2017. Each government-sponsored enterprise (GSE) was given an annual investment limit of $500 million. The GSEs were two of the nation’s largest LIHTC investors, representing an estimated 35 percent to 40 percent of the market, before being placed into conservatorship by FHFA in 2008.
Within the $500 million cap, any investments above $300 million in a given year are required to be in areas that have been identified by FHFA as markets that have difficulty attracting investors. These investments are designed to preserve affordable housing, support mixed-income housing, provide supportive housing, or meet other affordable housing objectives.