FreddieMac Announces new Affordable Housing Financing Commitment with The Promise Homes Company
Freddie Mac Initiative Brings Affordable Homes to Three Cities
Freddie Mac is financing an initiative that supports both affordable housing and the surrounding community. The Government Sponsored Enterprise (GSE) announced on Monday that it had provided $7.8 million in funding for the acquisition of 117 single-family rental (SFR) units by Promise Homes Company. The units are located in the Atlanta, Orlando, and Tallahassee markets.
According to a statement issued by Freddie Mac, Promise Homes offers affordable housing to families that choose to live in single-family homes but were unable to buy their home due to financial and credit history. The transaction is in partnership with CBRE, Freddie Mac said.
“This transaction represents a true win-win for the families renting these properties and the broader community,” said David Leopold, VP of Targeted Affordable Sales and Investments at Freddie Mac Multifamily. “Promise Homes does more than provide affordable housing to its residents–it brings financial literacy and economic growth in the form of sustainable employment. This is exactly the type of transaction we’re looking for with our single-family rental pilot, and we thank our friends at CBRE for helping to make this transaction happen.”
Freddie Mac's single-family rental pilot was introduced in 2017, and this transaction represents the latest in its $1.3 billion investment limits for the pilot. Of the 117 properties in the transaction, 96 percent qualify as "affordable housing," based on 80 percent of the area median income. Six percent will be rented to market-rate tenants or tenants with Section 8 vouchers.
“This portfolio addition will enhance the lives for more than 100 working middle-class families, both in terms of the quality of homes they live in as well as financial literacy and credit score resources through our partnership with Operation HOPE,” said John Hope Bryant, Founder, Chairman, & CEO of The Promise Homes Company. “The Promise Homes Company has a double bottom-line, and we appreciate the opportunity to work with two leading companies to help the strength of our communities and working or middle-class families.”