$9.4 Million for Yavapai-Apache Nation Tribal Housing to Cut Lengthy Low-Income Housing Waitlist
MCLEAN, Va., July 22, 2019 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB:FMCC) announced today it has made its first Low-Income Housing Tax Credit (LIHTC) equity investment in tribal housing through its fund with RBC Capital Markets' (RBCCM) Tax Credit Equity Group. The $9.4 million investment in Yavapai-Apache Nation Tribal Housing (YANTH) will support 35 new units targeting members of the tribe with incomes of up to 40%, 50% and 60% of area median income. The three- and four-bedroom homes all benefit from a tribal Housing Assistance Payments (HAP) program, which will allow tenants to pay no more than 30% of their income toward rent.
"Affordable housing is desperately needed on tribal lands where poverty is high and sources of capital are limited," said David Leopold, vice president of Targeted Affordable Sales & Investments at Freddie Mac. "There are more than a hundred families on the Yavapai-Apache Nation Tribal Housing waitlist. Through our LIHTC equity investment with RBCCM, we'll be able to meet the housing needs of nearly a third of those in need of an affordable place to live."
"Freddie Mac's investment underscores their commitment to deliver capital to both geographic and demographic components of the housing market that have experienced challenges attracting LIHTC investment capital," said Eric Moody, managing director-underwriting for RBC Capital Markets' Tax Credit Equity Group. "RBCCM is pleased to be a part of this important investment in tribal housing."
Dubbed Yavapai VII, the newly constructed development will include 30 single-story, three-bedroom units and five four-bedroom homes. Each unit will include an attached two-car garage as well as two uncovered driveway parking spaces. All units will also feature roof-mounted solar panels intended to reduce tenant-paid utility expenses.
Residents of Yavapai VII and the broader community will benefit from a 7,800 square foot community building, where tutoring, supplemental lessons on Yavapai-Apache culture, financial literacy, job training, resume development, interview practice and networking, and nutrition classes/cooking demonstrations will be available at no cost.
"The Yavapai-Apache Nation is honored that Freddie Mac stepped forward to invest in this project, a project that will, in the end, provide much needed relief to the current housing shortage situation of our people and provide high quality, safe and affordable housing for the men, women, children and elders of our Nation," said Lawrence Jackson, Sr., vice chairman of the Yavapai-Apache Nation.
"Yavapai-Apache Homes VII is RBCCM's 25th investment with tribal housing partners across the country. We're excited to continue our partnership and work on our third project with YANTH," said John Galfione, vice president-investment manager for RBC Capital Markets' Tax Credit Equity Group.
Freddie Mac re-entered the LIHTC equity investment market in 2018 with six proprietary funds including one with RBCCM. The Freddie Mac-RBC Fund invests in the creation and preservation of affordable rental housing across the country, focusing on transactions in areas that have been underserved over the past decade, such as rural communities, 4% LIHTC financing and developments that provide intensive supportive services for their residents. It also invests in supportive housing for special needs populations and housing in disaster affected areas.
The fund has already provided more than $190 million in targeted affordable housing investments across 12 transactions, including two in Puerto Rico and 10 more across seven states, including Alabama, Arizona, New York, South Carolina, Tennessee, Texas and West Virginia.
More than 20 million households across the country are cost-burdened, meaning they pay more than 30% of their income for housing. Eleven million are severely cost-burdened, paying more than 50% of their income for housing. Freddie Mac and RBCCM are proud to be working together to address this vast and growing need through LIHTC.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, @FreddieMac and Freddie Mac's blog.
RBC Capital Markets' Tax Credit Equity Group provides equity capital by utilizing the Federal Low Income Housing Tax Credit, State Low Income Housing Tax Credit, Historic Tax Credit, New Markets Tax Credit and Renewable Energy Tax Credit programs. Since its inception, RBCCM has raised over $10 billion of equity for affordable multi-family and senior housing, historic and renewable energy tax credit programs, and has 972 assets located in 47 states, the District of Columbia, Puerto Rico and represents 85,278 affordable homes under administration. Learn more at https://www.rbccm.com/tceg.
Source: Freddie Mac