Freddie Mac To Support Housing For Those With IDD
Mortgage giant Freddie Mac is planning to issue millions of dollars in “social bonds” to support housing for people with intellectual and developmental disabilities across the country.
Freddie Mac Multifamily, which funds apartment loans, said it will offer $230 million in social bonds supporting 1,267 rental homes for people in this population across 39 states and Washington, D.C.
The company said proceeds from the social bonds will “help address the significant shortage of community-based homes critical to the ‘deinstitutionalization’ of care for individuals with disabilities.”
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The properties will offer housing in the community for 4,462 people with developmental disabilities, officials indicated.
An estimated 90% of the beds provided will be affordable to people with incomes lower than half of the local median level.
“Freddie Mac Multifamily is incredibly proud to bring our first social bonds transaction to market providing housing for individuals with intellectual and developmental disabilities,” said Robert Koontz, senior vice president of capital markets for Freddie Mac Multifamily. “This transaction represents our commitment to ensuring safe, affordable housing that meets the needs of the community it serves. Our impact bonds, and specifically the social bonds framework, encourage innovation to provide solutions that meet the unique needs of underserved communities.”
Freddie Mac Multifamily said that proceeds from social bonds are used to help social impact financial institutions fund affordable housing or to finance affordable housing properties for underserved populations through the company’s Optigo network of lenders.
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