MCLEAN, Va., April 21, 2021 (GLOBE NEWSWIRE) – Freddie Mac (OTCQB: FMCC) Multifamily has one today report The Impact Bond range offers investors the opportunity to support apartment buildings that are dealing with ongoing housing and environmental issues. In total, as of December 31, Freddie Mac Multifamily has issued green bonds valued at $ 3.3 billion, social bonds valued at $ 874 million and sustainability bonds valued at $ 971 millionst, 2020.
“Freddie Mac’s Impact Bond Series is a great example of our ongoing commitment to improving and maintaining affordable housing while reducing ancillary costs for tenants through water and energy efficiency that also benefits the environment,” said Robert Koontz, Head of Capital Markets at Freddie Mac Apartment Building. “These bonds provide investors with the opportunity to support the safe, high-quality workforce and affordable housing that are fundamental to creating sustainable communities.”
Below you will find important highlights from the three bond areas:
- Green bonds: Green bonds focus on improving the efficiency of housing for workers and preserving the housing stock by implementing updates that have an impact on the environment and bring about cost savings. Tenants in these properties are expected to save an average of $ 261 per unit per year through lower utility costs. In addition, water improvements are expected to save over 370 million gallons of water annually, the equivalent of over 4,000 households’ annual water consumption, and energy savings are expected to save enough energy to power 7,200 households (264 million kBtu).
- Social Bonds: Social Bonds focus on supporting affordable housing by providing liquidity to financial institutions that are clearly addressing the challenge of affordable housing or providing funding to underserved populations. 73 of the loans supported real estate for underserved populations, including the disabled, senior citizens, farm workers, homeless, veterans and transitional workers. Additionally, 79% of the units are affordable for families earning 60% AMI or less.
- Sustainability bonds: Sustainability bonds are designed to attract capital to support the economic mobility of residents as well as economic growth and sustainability in the communities. 73 percent of the units are affordable for families earning 60 percent AMI or less. 67% of financed mixed income real estate is in areas of concentrated poverty, which can help improve the economic diversity of residential areas, leading to greater economic and social mobility within the community.
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Freddie Mac Apartment Building is the leading provider of multi-family home finance in the nation. Historically, more than 90% of the eligible rental units we funded are affordable for low to middle income families who earn up to 120% of the area median income. Freddie Mac securitizes around 90% of the multi-family loans he acquires, thus transferring most of the expected credit risk from taxpayers to private investors.
Freddie Mac makes the home possible for millions of families and individuals by providing mortgage capital to lenders. Since our inception by Congress in 1970, we’ve made housing construction more accessible and affordable for buyers and renters in communities across the country. We’re building a better real estate finance system for buyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.