It’s a refrain we don’t tire of hearing: We’ve hit another record high in Targeted Affordable Housing 2018 volume. And once again, we financed the most rental homes for low-income families.
We reached these new heights thanks to all of you and a shared commitment to our business and affordable housing. Through our partnerships, we’ve strengthened our flagship offerings and created new initiatives—to house more families and make an even greater community impact. In places big and small, whether cities or rural towns, we’ve worked hard to better serve Borrowers and residents, with a strong focus on underserved communities.
We’re proud to announce our volume topped $8.1 billion1 in 2018. And, we financed more than 60,000 homes for renters who needed a decent, affordable place to live.
We’re making a difference in places like Caguas, Puerto Rico devastated by Hurricanes Irma and Maria. There, we’re helping build affordable housing that’s resilient to future storms—to support a community’s efforts to rebuild after disaster.
In Caguas and neighborhoods across the U.S., we make more affordable homes a reality—thanks in part to our Low-Income Housing Tax Credit (LIHTC) equity business. We’re delighted to reach an important LIHTC milestone in our first year reentering this market: $500 million in investments to build and create affordable housing.
With your support, our team continues to expand and improve offerings like our flagship tax-exempt loan (TEL). In the rent-burdened Washington, D.C. region, where finding affordable housing hits seniors with fixed incomes especially hard, I visited a beautiful new community for them, financed through our TEL program.
In 2018, we also made it easier and more cost-effective to finance smaller properties, an important part of the rental market, with our new TAH Express (TAH-X) offering. By the end of the first quarter, we project we’ll reach more than $100 million in TAH-X business.
Our innovation helped both renters and Borrowers alike – with new offerings like the Targeted Affordable Mezzanine Loan pilot. Through this offering, we provide favorable financing terms for Borrowers who commit to maintain affordable rents. We’ll continue to fine-tune this initiative to better suit your Borrower needs.
With our new Non-LIHTC Forwards, we’re creating workforce and affordable housing by meeting a special need in the market: financing for properties, with multiple subsidies, funded by public or mission-driven investment – while providing interest rate certainty in the face of volatility.
In Washington state we made our first workforce housing loan on Native American Tribal lands — yet another first that shows how we’ve branched out to serve every corner of the market.
We couldn’t do this without all of you: You're the foundation for our success and fuel our progress. A special shout out goes to our 2018 top lenders: Wells Fargo Multifamily Capital, Jones Lang LaSalle, and Citibank. We reached another milestone with Wells Fargo as our first lender ever to reach (or exceed!) $1 billion in annual TAH volume.
The housing challenges in our communities are great: There are only six affordable rentals for every 10 very low-income households. With creative collaboration and our commitment to innovate, we’re determined to make even more of a difference in 2019.
I’m proud of our shared accomplishments in 2018 and eager to scale even more new heights in the months ahead.
1 Freddie Mac Multifamily financing for properties that feature either some or all units with rent restrictions and/or other federal and state subsidies.
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