Freddie Mac Multifamily recently announced that it will soon go to market with the issuance of $230 million in Social Bonds supporting 1,267 rental homes across 39 states and the District of Columbia for individuals with intellectual and developmental disabilities.
The company said proceeds from the social bonds will “help address the significant shortage of community-based homes critical to the ‘deinstitutionalization’ of care for individuals with disabilities.”
The properties will offer housing in the community for 4,462 people with developmental disabilities, officials indicated. An estimated 90% of the beds provided will be affordable to people with incomes lower than half of the local median level.
“Freddie Mac Multifamily is incredibly proud to bring our first Social Bonds transaction to market providing housing for individuals with intellectual and developmental disabilities,” said Robert Koontz, senior vice president of Capital Markets for Freddie Mac Multifamily. “This transaction represents our commitment to ensuring safe, affordable housing that meets the needs of the community it serves. Our Impact Bonds, and specifically the Social Bonds framework, encourage innovation to provide solutions that meet the unique needs of underserved communities.”
According to the company’s Social Bonds Framework, the proceeds of Freddie Mac’s Social Bonds are used to help social impact financial institutions fund affordable housing or to finance affordable housing properties for underserved populations through the company’s Optigo network of lenders.
Sources: United Needs and Abilities, Inc. and Globe Newswire