Expanding Bridge Financing: Our Revamped ‘TAH Bridge Loan’
The nation’s renters can’t afford to lose more affordable rental housing.
To preserve quality, affordable housing over the long run — an ongoing team challenge and focus — we’ve broadened our bridge financing and renamed these offerings under one umbrella: the TAH Bridge Loan. We’re giving you and your borrowers more flexibility: Now, non-LIHTC properties qualify with a long-term affordability commitment, not just tax credit properties.
This short-term loan allows borrowers to quickly acquire a property and adequately address the scope of work and source of funds they need to begin rehab.
The Bridge Loan encompasses the:
- Former “Bridge to Resyndication” offering for properties with expired tax credits working to get new credits
- New “Bridge to Syndication” feature for properties that need tax credits (4% allocation) for the first time
- New “Non-LIHTC Bridge” feature, where tax credits are not involved: The two-year floating-rate loan gives sponsors time to get financing together to start Preservation Rehab or enter into a Non-LIHTC Forward commitment, bridging the gap between when they acquire the property and when they have to start rehab or construction
Preserving affordable housing is part of Freddie Mac’s Equitable Housing Finance Plan which highlights the creation, preservation and rehabilitation of affordable rental housing. This year, our goal is to preserve at least 3,000 affordable units that do not use a government subsidy — through Freddie Mac loan documents. Please see our Workforce Housing Preservation offering for more information.