September 12, 2019
We work hard to serve every corner of the U.S. rental housing market. So we’re proud to make our first affordable housing investment on the island of Guam, a U.S. organized territory in the western Pacific’s Micronesia, nearly 6,000 miles from San Francisco.
Ironwood Villas Phase II is a $30 million affordable housing development that will create 88 affordable homes for low-income families in the village of Mongmong-Toto-Maite.
Our partners include Boston Financial Investment Management for our low-income housing tax credit (LIHTC) equity investment, and Citibank as our lender on the debt side. The property is being developed by Ironwood Guam Development, which has six affordable properties already in Guam and one more in nearby Saipan.
We will invest just over $25 million in tax credit equity through Boston Financial, and committed to provide a $3.9 million permanent loan through Citibank Community Capital. Bank of Guam is also providing a $21.5 million construction loan.
“We’re making a difference in communities all over the U.S.,” said David Leopold, Freddie Mac vice president of Targeted Affordable Sales & Investments. “And we’re excited to make our first affordable housing investment in Guam: Our LIHTC equity is coupled with a permanent loan to support the construction and long-term viability of this affordable housing.”
The apartment homes are a mix of one-, two- and three-bedroom units in six garden-style buildings. Residents will also benefit from a community building and site-based services.
The nonprofit Micronesia Community Development Corporation will offer residents a variety of free social service programs known as IronKids. Planned services include a summer camp, parents’ night out, boy scouts/girl scouts troops, karate classes, homework tutoring, arts and crafts, a reading program, computer classes, English and citizenship classes, and referral services.
“We’re pleased to bring new investors Boston Financial and Freddie Mac to Guam to help us develop another safe, clean and affordable Ironwood Community for the families of Guam,” said Rick Inman, principal, Ironwood Guam Development.
"The need for more safe and affordable housing in Guam continues, and to that end we are proud to partner with Freddie Mac, Citibank, Bank of Guam and Ironwood to provide financing solutions that will allow for the creation of these new homes,” said Sarah Laubinger, executive vice president for Boston Financial Investment Management. “Guam is an example of the breadth of markets served by the Freddie Mac and Boston Financial LIHTC equity partnership."
As the top funder of affordable housing in the U.S., we innovate to serve the needs of the market — and work to tackle the nation’s most persistent housing challenges. Through our Duty to Serve commitment with the Federal Housing Finance Agency, we focus on rural and manufactured housing and preserving more affordable housing for renters nationwide.
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