Preservation
This product can be used with:
■ Bond credit enhancements with
4% LIHTC
Rehabilitation Financing ■ Tax-exempt loans with 4% LIHTC
Funds to Renovate Affordable ■ 9% LIHTC cash loans
Housing Properties ■ Rehab funding with tenants in place
■ Eligible mixed-use properties
Is your borrower looking to renovate an affordable multifamily
property? We provide financing for the moderate rehabilitation
of affordable properties with new Low-Income Housing Tax
Credits (LIHTCs).
The Freddie Mac Difference
When it comes to multifamily finance, Freddie Mac gets it done.
We work closely with our Optigo® network of Seller/Servicers to
tackle complicated transactions, provide certainty of execution
and fund quickly.
Contact your Freddie Mac Multifamily representative
today — we’re here to help.
Borrowers Who Want to Know More
Contact one of our Optigo lenders at
mf.freddiemac.com/borrowers/
Our Freddie Mac Multifamily
Green Advantage® initiative rewards
Borrowers who improve their properties
to save energy or water.
mf.freddiemac.com/product/
Tax-Exempt Financing with 4% LIHTC 9% LIHTC Cash Loan
Eligible Garden, mid-rise, or high-rise multifamily Garden, mid-rise, or high-rise multifamily
Property Types properties with new 4% Low-Income properties with new 9% LIHTC that are
Housing Tax Credit (LIHTC) undergoing undergoing moderate rehabilitation with
moderate rehabilitation with tenants in place tenants in place
Terms Minimum term: Remaining LIHTC Minimum term: Lesser of 15 years or the
compliance period or 15 years, whichever is remaining LIHTC compliance period;
less; 15 years with HUD Risk Sharing 15 years with HUD Risk Sharing
Maximum term: 35 years Maximum term: 35 years
Rehabilitation/stabilization period Rehabilitation/stabilization period
(maximum of 24 months) will be included in (maximum of 24 months) will be included
loan term in loan term
Product Tax-exempt financing for the moderate Financing for the moderate rehabilitation
Description rehabilitation of affordable multifamily of affordable multifamily properties with a
properties with a new 4% LIHTC and new 9% LIHTC and tenants in place
tenants in place
Type of Tax-exempt financing for Financing for acquisition/rehabilitation
Funding acquisition/rehabilitation based on projected based on projected post-rehabilitation
post-rehabilitation net operating income NOI; cash or letter of credit collateral
(NOI); cash or letter of credit collateral required to fund gap between
required to fund gap between supportable supportable debt on current NOI and
debt on current NOI and bond mortgage loan amount (collateral held until
loan amount (collateral held until stabilization); interest-only during the
stabilization); interest-only during the rehabilitation/stabilization period
rehabilitation/stabilization period
Minimum ■ Variable rate with cap hedge: 1.20x New tax credits: 1.15x
Debt Coverage ■ Fixed rate: 1.15x
Ratio (DCR)1
Maximum ■ Variable rate with cap hedge: 80% of 90% of market value
Loan-to-Value adjusted value or 85% of market
(LTV) Ratio1 value
■ Fixed rate: 85% of adjusted value or
90% of market value
Maximum 35 years 35 years
Amortization
mf.freddiemac.com/product/
Prepayment Fee maintenance Yield maintenance
Provisions
mf.freddiemac.com/product/
Tax-Exempt Financing with 4% LIHTC 9% LIHTC Cash Loan
Subordinate Permitted Permitted
Financing
Tax and Required Required
Insurance
Escrows
Fees Application fee, commitment fee, Application fee, commitment fee,
plus other fees, as applicable plus other fees, as applicable
1
Adjustments may be made depending on the property, product and/or market.
For More Information
Contact your Targeted Affordable Housing representative.
mf.freddiemac.com/product/
January 2019
