20 January 2023

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 “In a year marked by record rent inflation and a rental housing supply crisis, Freddie Mac Multifamily prioritized its affordable housing mission,” said Kevin Palmer, head of Freddie Mac Multifamily. “Not only did we exceed our aggressive affordable housing goals, but we also set a record for Targeted Affordable Housing, ramped up our LIHTC equity investments by 45%, and made nearly $2 billion in forward commitments designed to bolster future housing supply.”

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Freddie Mac Exceeds 2022 Affordable Housing Goals

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Article originally posted on Multifamily Executive on January 19, 2023

Year-End Multifamily Production Volume for the GSE Totaled $73.8 Billion.

Freddie Mac Multifamily’s production volume for 2022 totaled $73.8 billion, with the government-sponsored enterprise (GSE) meeting its affordable housing goals set by the Federal Housing Finance Agency (FHFA). As part of the total, the GSE had a record of nearly $1 billion in low-income housing tax credit (LIHTC) equity investments. It also saw a record for its targeted affordable loan purchases that have a regulatory rent restriction or subsidy, increasing 60% to $15.3 billion last year, up from 2021’s $9.6 billion.

“In a year marked by record rent inflation and a rental housing supply crisis, Freddie Mac Multifamily prioritized its affordable housing mission,” said Kevin Palmer, head of Freddie Mac Multifamily. “Not only did we exceed our aggressive affordable housing goals, but we also set a record for Targeted Affordable Housing, ramped up our LIHTC equity investments by 45%, and made nearly $2 billion in forward commitments designed to bolster future housing supply.”

Of the 693,000 rental units financed through loan purchases last year, over 420,000 were affordable to low-income households earning up to 80% of the area median income (AMI). This exceeds the 415,000-unit goal set by the FHFA. Nearly 128,000 units were affordable to very low-income households earning up to 50% of the AMI, which represents 145% of the 88,000-unit goal. The GSE also surpassed its low-income housing goal for properties with five to 50 units by 118% with 27,103 units.

According to Freddie Mac Multifamily, nearly 69% of its volume in 2022 qualified as mission-driven affordable housing, exceeding FHFA’s 50% goal. In terms of units, 96% of loan purchases supported units affordable at 120% of the AMI; 74.1% supported units at 80% of the AMI; 43.7% supported units at 60% of the AMI; and 22.5% supported units at 50% of the AMI.

Other highlights for Freddie Mac Multifamily in 2022 include:

  • A record $1.9 billion in forward commitments, which will support 20,000 new or rehabbed affordable housing units;
  • $4.4 billion in small-balance loans;
  • $2.7 billion in seniors housing loans; and
  • $1.6 billion in student housing loans.

“The Freddie Mac Multifamily team and our network of Optigo lenders worked tirelessly to deliver consistent liquidity to a turbulent market in 2022,” said Steve Johnson, senior vice president for production and sales at Freddie Mac Multifamily. “We brought our affordable housing A game, reaching new heights and hitting goals that few thought possible in a shrinking originations market. My sincere thanks and appreciation go out to our lender network and the Freddie Mac team.”

Berkadia topped the list of lenders by volume for 2022, followed by CBRE, Walker & Dunlop, Capital One, and JLL. PGIM Real Estate, Newmark, KeyBank, Greystone, and NewPoint Real Estate Capital rounded out the top 10.

For conventional, Berkadia came in at the top, followed by CBRE, Walker & Dunlop, Capital One, and JLL. Berkadia also ranked first for Targeted Affordable Housing, followed by CBRE, Citibank, Merchants Capital, and KeyBank. Wells Fargo was the top lender for student housing, CBRE for small-balance loans, and Newmark for seniors housing.

Freddie Mac Exceeds 2022 Affordable Housing Goals

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