The Freddie Mac SBL Product Fills Unique Financing Needs of Small Multifamily Buildings
The Community Preservation Corporation (CPC), a leading nonprofit affordable housing and community revitalization finance company, recently announced the closing of two permanent loans under the Freddie Mac Small Balance Loan (SBL) Program. The loans, totaling $2.34 million were used for the acquisition of two small multifamily buildings in Philadelphia, Pennsylvania.
CPC delivered a $1.37 million permanent loan with Haverford Square Properties LLC for the 3-story, 18-unit residential building at 3838-3842 Haverford Ave in Philadelphia. CPC also closed a $969,000 permanent loan with the same borrower for the 3-story, 12-unit building at 3856-3860 Haverford Ave., also located in Philadelphia.
“For a company that specializes in small building finance, Freddie Mac’s SBL plays a big role in our suite of lending products,” said Michael Staton, Vice President & Mortgage Officer at CPC. “Not only does it offer the flexible terms that our borrowers are looking for, but in an environment of rising interest rates, SBL is extremely competitive.”
“These transactions are right in our sweet spot—and we’re thrilled to be bringing more workforce housing to major markets like Philadelphia,” said Stephen Johnson, Freddie Mac vice president, small balance loan business. “Our Small Business Loan program continues to accelerate – offering unique financing solutions to lenders like CPC who play a vital role in keeping housing available – and more importantly – affordable.”
CPC is focused on its core mission of addressing the gap in the market for flexible lending products for small multifamily buildings—a segment of the housing stock that plays a critical role in providing housing for low- and moderate-income families. Freddie Mac’s SBL program is designed to address the need for cost-effective financing solutions for the acquisition and refinancing of small multifamily buildings and offers a streamlined process for permanent loans between $1 million and $7.5 million.
The SBL product can be used for the acquisition and refinancing of properties with five or more units that may have tax abatements and Section 8 housing choice vouchers, senior housing without services, extended-use agreements for properties that are no-longer in the investor compliance period for Low-Income Housing Tax Credit properties, and properties with space for commercial use.
CPC is dedicated to bringing stable permanent lending capital to multifamily projects in underserved and growing communities throughout the Mid-Atlantic region. Whether providing Conventional Financing products or capital to address the needs of small buildings through the SBL program, the decades-long partnership between CPC and Freddie Mac offers borrowers reliable loan products tailored to multifamily developments of all sizes. Though Fiscal Year 2018, CPC has originated more than $436 million in Freddie Mac multifamily loans.
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. The company provides a full suite of capital products through its construction lending, permanent lending, and equity investing platforms. Since inception, CPC has leveraged approximately $10 billion in private and public investment to finance more than 185,000 units of multifamily housing. CPC’s work with its partners has helped revitalize countless neighborhoods and provided quality housing for families, senior citizens, and individuals with disabilities. Visit CPC at communityp.com, and on Facebook, Twitter and LinkedIn.