Freddie Mac Multifamily said it will soon be launched with social ties that support housing for people with intellectual and developmental disabilities. (Thinkstock)
Mortgage giant Freddie Mac plans to spend millions of dollars in “social bonds” to support housing for people with intellectual and developmental disabilities across the country.
Freddie Mac Multifamily, who finances home loans, said it will offer $ 230 million in social bonds to support 1,267 rental homes for people in that population in 39 states and Washington, DC
The company said the social bond revenue “will help address the significant community housing shortage that is critical to the ‘deinstitutionalization’ of care for people with disabilities”.
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The property will provide housing for 4,462 people with development disabilities in the community, officials said.
It is estimated that 90% of the beds provided will be affordable for people with incomes less than half the local median level.
“Freddie Mac Multifamily is incredibly proud to launch our first social bond transaction that provides housing for people with intellectual and developmental disabilities,” said Robert Koontz, Freddie Mac Multifamily’s senior vice president of capital markets. “This transaction represents our commitment to providing safe, affordable housing that meets the needs of the community it serves. Our Impact Bonds, and in particular the Social Bond Framework, drive innovation to offer solutions that meet the unique needs of underserved communities. “
Freddie Mac Multifamily said the social bond proceeds will be used to help social impact financial institutions finance affordable housing or fund affordable housing for underserved populations through the company’s Optigo lender network.