Freddie Refocuses on Preservation, Starts Green Refi Program - Affordable Housing via Multifamily Executive Magazine

Fannie Mae and Freddie Mac’s affordable housing divisions went their separate ways last year.

Fannie’s business model was to focus on a long-term horizon, particularly on preservation deals—what’s called “year-11” deals, in the low-income housing tax credit (LIHTC) world. A property financed through LIHTCs undergoes a 10-year credit period, then needs to refinance. And a giant wave of expiring LIHTC properties are expected to look for permanent debt over the next few years.

Freddie instead focused on bond deals, with a heavy emphasis on the New Issue Bond Program (NIBP), a limited-time stimulus program from the Treasury Department. The NIBP program expires at the end of this year, making it a short-term play.

Read more...Freddie Refocuses on Preservation, Starts Green Refi Program - Affordable Housing - Multifamily Executive Magazine