Freddie Mac’s Targeted Affordable Housing Product Brings Flexible Financing to the Market for Affordable Housing Developers and Owners
Albany, New York – The Community Preservation Corporation (CPC), City of Albany Mayor Kathy M. Sheehan, and the Albany Housing Authority (AHA) announced $1.7 million in funding to refinance 142 units of affordable housing at the Capital Woods Apartments located at 200 Lark Drive in Albany, New York. The loan, which is being provided by CPC using Freddie Mac’s Targeted Affordable Housing (TAH) product, allows the Housing Authority to refinance at a more favorable rate, helping to preserve the property’s affordability by ensuring its financial and physical stability.
“In the Capital District, small buildings are the backbone of our housing stock. They are where most low- and moderate-income renters live, and are an essential and irreplaceable resource of affordability,” said Michael Skrebutenas, Senior Vice President & Regional Director at CPC. “When we started this partnership with the Albany Housing Authority, our shared mission was to put together a refinancing plan that would preserve affordability and stability of the Capital Woods Apartments. Freddie Mac’s Targeted Affordable Housing product gave us the perfect financing tool for the job, and will help ensure that the property will continue to serve the community for decades to come.”
“Affordable rental housing is an integral component of vibrant communities,” said City of Albany Mayor Kathy Sheehan. “Refinancing the Capital Woods Apartments will allow the Albany Housing Authority to continue to offer housing stability to low- and moderate-income renters for years to come. Thank you to the Community Preservation Corporation for their commitment to ensuring the viability of affordable housing in the City of Albany.”
“Albany’s public and affordable housing play a key role in providing safe, quality homes for thousands of low-income people throughout the city,” said Steven T. Longo, Executive Director of the Albany Housing Authority. “The preservation of the Capital Woods Apartments will ensure that its 142 units will remain as a resource of affordable housing and touchstone of stability for its current and future tenants. My thanks to The Community Preservation Corporation for their collaboration in our work to refinance and preserve this property.”
“Today’s announcement underscores Freddie Mac’s commitment to provide flexible financing solutions to organizations like The Community Preservation Corporation and Albany Housing Authority, which share our mission to preserve affordable rental housing in America’s communities,” said Shaun Smith, senior director of Targeted Affordable Housing at Freddie Mac.
The Capital Woods Apartments consists of 18 two-story buildings with a total of 142 units and one community building. The property serves the Albany area as a resource of deeply affordable housing for low-income families, with 135 units available to households at 60% of the Area Median Income (AMI) and 35 units available to households at or below 50% AMI. The development offers a mix of one-, two-, three-, four- and five-bedroom apartments.
CPC’s TAH loan allows the Albany Housing Authority to preserve this resource of affordable housing by refinancing its mortgage at a lower rate as the property is reaching the end of its initial tax credit compliance period and the equity partner has left the deal. As a nonprofit affordable housing and community revitalization company, CPC is committed to providing flexible lending products that serve the needs of owners of affordable housing; whether they are private developers, nonprofit organizations, or government entities.
The Freddie Mac TAH program helps CPC achieve its nonprofit mission by offering an array of loan products for financing in underserved areas that are affordable to families with low and very-low incomes including cash loans, bond credit enhancements, tax-exempt loans, and others.
When AHA took control of the Capital Woods Apartments in 1998, it was a 260-unit, privately-owned property that was failing and in significant physical and financial distress. AHA invested $13 million in tax-exempt bonds, U.S. Department of Housing and Urban Development Upfront grant tax credit equity, and Federal Home Loan Bank funds to de-densify and rehabilitate the development. The property was placed into use in 2001 after its extensive rehabilitation.
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About The Community Preservation Corporation (CPC)
Established in 1974, CPC is a nonprofit affordable housing and community revitalization finance company that believes housing is central to transforming underserved neighborhoods into thriving and vibrant communities. We provide innovative capital solutions, fresh thinking and a collaborative approach to the often complex challenges that owners and developers of multifamily housing face. To date, CPC has leveraged approximately $9.7 billion in private and public investment to finance more than 170,660 units of affordable housing. Our work with our partners has helped revitalize countless neighborhoods throughout New York, and provided quality housing for families, senior citizens, and individuals with disabilities. Follow us at communityp.com, and on Facebook, Twitter and LinkedIn.
About the Albany Housing Authority (AHA)
For over forty years, Albany Housing Authority has been providing rental housing for very low, low, and moderate income households in the city of Albany. The agency owns and operates 2,400 public housing units, administers an ongoing public housing rehabilitation program averaging $2.5 million annually, and administers a Section 8 program that provides assistance on behalf of 2,200 households in the city of Albany.
About Freddie Mac
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 and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.