Freddie Mac Closes Second LIHTC Fund Since Re-entering Market

Freddie Mac recently announced that it has closed its second LIHTC fund since re-entering the market earlier in September, and the first fund managed by Hudson Capital. The Hudson Housing Tax Credit Fund will invest nationwide to create and preserve affordable homes. It will focus on transactions in areas that have been underserved over the past decade, such as rural communities, 4 percent LIHTC financing, and developments that provide intensive supportive services to their residents. The fund will provide as much as $100 million in targeted affordable housing investments, with more investments possible as additional transactions are closed.

The fund has already begun to finance much-needed affordable housing. Freddie Mac and Hudson announced a $17.5 million LIHTC equity investment through the fund for Lord Road Apartments, which will provide 324 homes for residents of San Antonio, Texas—a growing city that’s experiencing a material shortage of affordable rental housing. Freddie Mac is also providing $26 million in permanent debt financing for the development. The property’s sponsor is NRP Enterprises, a full-service developer, general contractor, and property manager with a portfolio of more than 20,000 units.