MCLEAN, Va., Dec. 27, 2021 (GLOBE NEWSWIRE) – Freddie Mac (OTCQB: FMCC) today released a pair of white papers as part of Freddie Mac’s Duty to Serve plan, which aims to increase market liquidity historically underserved nationwide. The first paper discusses multi-family resilience efforts and identifies the importance of these measures for people disparately affected by disasters and climate change. The second paper builds on the 2018, 2019 and 2020 reports by revealing new data on energy and water efficiency improvements in workforce housing achieved under the the company’s green benefit.® program. This year’s report includes an in-depth analysis of the impact of green improvements on loans purchased through Green Up® and Green Up Plus® offerings.
“Green upgrades and resilience efforts are critical to preserving affordable housing, especially in communities and properties serving minority and low-to-moderate income tenants,” said Corey Aber, Senior Mission Director, multi-family policy and strategy at Freddie Mac. “By examining existing resilience efforts, we are working to identify resources that industry and multi-family operators can draw on and tap to improve preparedness and response to natural disasters. Our Green Improvements paper, on the other hand, builds on previous research and improves the overall transparency of our energy and water conservation efforts.
Resilience efforts in affordable multi-family housing
The first article, “Resilience Efforts in Affordable Multi-Family Housing,” revealed that comprehensive and proactive planning is particularly important for low-income and minority communities, which are geographically more vulnerable and at greater risk of suffering the financial impacts. and health caused by natural disasters. . Currently, there are several public and private market approaches to improve resilience, including government programs (e.g. Low Income Housing Tax Credit (LIHTC) incentives) on the public side and reductions in insurance premiums and specialized financing for resilience efforts through the private market. These programs and initiatives can lay the groundwork for new innovations and collaboration between public and private sector actors to maximize resilience.
2021 analysis of green improvements in workforce housing
The second paper, “2021 Analysis of Green Improvements in Workforce Housing,” examined the impact of Green Up and Green Up Plus, which aim to improve energy and water efficiency in the multi-family properties of the workforce. From the launch of the program until the third quarter of 2021, the Freddie Mac Multifamily Green Up and Green Up Plus offerings were used on loans totaling $ 64 billion, affecting nearly 630,000 units. Improvements to these properties save an average of $ 191 per unit per year and renters $ 129 per year based on reported property data.
Freddie Mac continues to be an industry leader in the assessment of utility data that provides critical transparency to property economies through green improvements. To aid in this effort, Freddie Mac created a resource page for borrowers and other stakeholders, including a Green Advantage Benchmarking Data Collection Guide and how-to videos for data collection and sharing. These efforts have contributed to a 25% increase in reported tenant data from 2020, allowing Freddie Mac to perform a more tenant-specific energy savings analysis.
Freddie Mac Multifamily is the national leader in multi-family housing finance. Historically, over 90% of the qualifying rental housing we fund is affordable for low to moderate income families earning up to 120% of the region’s median income. Freddie Mac securitizes around 90% of the multi-family loans he purchases, thereby shifting the majority of the credit risk expected from taxpayers to private investors.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our inception by Congress in 1970, we’ve made housing more accessible and affordable for buyers and renters in communities across the country. We are building a better housing finance system for buyers, tenants, lenders and taxpayers. Learn more on FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.