July 08, 2019
Freddie Mac’s New Low-Income Housing Tax Credit Fund
In early March, Freddie Mac announced that it had begun a new Low-Income Housing Tax Credit (LIHTC) Fund, its fifth, to be managed for the first time by the National Equity Fund, which finances the United States’s majority of affordable rental housing. This Fund includes three investments that have been established in order to aid in the provision of housing for Americans who have become homeless, or who have been displaced by natural disasters.
While the National Equity Fund has been making and managing investments to aid these most underserved of American populations over the past 30 years, Freddie Mac’s LIHTC Fund is new to National Equity Fund’s particular project.
Some of the investments Freddie is making to this Fund are going toward aid for people displaced by Hurricane Harvey—in part by funding a project in Houston, Texas: the Dale Carnegie development being organized by New Hope Housing. There the $15 million investment made by the LIHTC will provide housing for 170 individuals and families.
Moreover, in Los Angeles, California, LIHTC equity investments will go toward reducing homelessness among civilians and veterans alike. The Skid Row Housing project will aid 100 homeless veterans and people with special needs, via a $19.6 million equity investment. Another such investment, in the amount of $26.5 million toward Hollywood Community Housing’s Florence Mill Apartments, aims to house the homeless in South Los Angeles, where the rate of homelessness is remarkably high. Of the seventy-four units, thirteen will be reserved specifically for homeless veterans.
Meanwhile, Freddie and National Equity Fund are doing what they can through the Low-Income Housing Tax Credit program to provide mortgage capital to lenders in order to offset the financial strain on the more than ten million Americans who pay over 50 percent of their income for housing.
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