Freddie Mac Multifamily Announces More Than $20 Billion in Impact Bonds Issued Since Program Inception

By klrw460 April 16, 2024

Freddie Mac’s Multifamily Impact Bonds program has surpassed $20 billion in issuances of Green, Social, and Sustainability bonds since its inception in 2019. This significant achievement was highlighted in the company’s latest annual Impact Bonds Report.

The program focuses on supporting multifamily properties that contribute solutions to enduring housing issues, particularly those related to environmental and social concerns, while ensuring enhanced transparency for investors.

Robert Koontz, Senior Vice President for Multifamily Capital Markets at Freddie Mac, expressed the company’s dedication, stating, “Reaching over $20 billion in issued Impact Bonds underscores our strong commitment to our mission and to addressing challenges that affect renters nationwide. Despite a tough market in 2023, our efforts made a noticeable difference, and we anticipate continued solid performance in 2024 with the backing of our investors. We are committed to continuously evolving and introducing innovative approaches to support both borrowers and tenants in line with market demands.”

In 2023 alone, the majority of the Impact Bond issuances were Social Bonds, with over $2.6 billion directed towards this cause. These funds supported Small Financial Institutions focused on affordable housing solutions, providing over $567 million to aid these institutions in making a meaningful impact, particularly critical during unstable market conditions.

Since the start of the program, the proceeds from these bonds have helped finance 183,384 housing units affordable for residents earning up to 80% of the area median income. Additionally, they have funded water conservation measures saving more than 570 million gallons of water annually—enough to fill Washington D.C.’s Lincoln Memorial Reflecting Pool 84 times over.

Freddie Mac Multifamily ensures that each Impact Bond targets specific environmental or social issues, adhering to rigorous selection criteria and thorough prescreening processes.

Details on the properties and impacts facilitated by these bonds across various categories are detailed in the Impact Bonds Report, available on Freddie Mac’s website.

For more information, read the original press release from: