Freddie Mac Targeted Affordable Housing Program
General Requirements for Targeted Affordable Housing Program Offerings
| Eligible Products | Bond Credit Enhancement – 4% LIHTC; Bond Credit Enhancement With Other Affordability Components; 9% LIHTC Mortgages; Cash Mortgages With Other Affordability Components |
| Eligible Properties | Affordable multifamily properties subject to low-income housing tax credits (LIHTC) or those properties with regulatory restrictions. |
| Eligible Transactions | Construction and permanent financing, conventional mortgages, credit enhancement facilities, acquisition/rehabilitation, moderate rehabilitation or LIHTC |
| Maximum Amortization | 35 years for loans with LIHTC; 30 years for loans without LIHTC |
| Loan Term | Up to 35 years |
| Minimum Occupancy | Generally 90% for 90 days prior to stabilization or conversion |
| Recourse Requirements | Non-recourse, except for standard carve-out provisions |
| Replacement Reserves | Required per Delegated Underwriting for Targeted Affordable HousingSM (TAH) Guide |
| Appraisal, Environmental Report, and Engineering Report | Required per TAH Guide (additional reports required for acquisition/rehabilitation, Moderate Rehabilitation and Forward Commitments) |
| Real Estate Tax Escrow | Required per TAH Guide |
| Property Insurance Escrow | Required per TAH Guide |
| Interest Rate Cap Escrow | Mark-to-market on a quarterly basis – escrowed at 125% |
| Application Fee (Non-refundable) | Standard is the greater of $3,000 or 0.1% of the maximum loan amount (liquidity facilities may have different fees) |
| Other Fees (Non-refundable) | Extension Fee |
| Forward Commitment Fees (Refundable) | Bond Credit Enhancements: Funded - forward commitment upon conversion: 1% of maximum loan amount Unfunded – forward commitment upon conversion: 2% of maximum loan amount; stand-by fee: 0.15% of maximum loan amount per annum, for each year until conversion Cash Purchases: Funded – forward commitment: 2%; delivery assurance: 5% Unfunded – forward commitment: 3%; delivery assurance: 5% |
| Loan Term for Forward Commitment | Up to 36 months for Forward Commitment with two six-month extensions available during construction 18-30 year term for permanent loan beyond the construction period |
PDF Version
- Download the Targeted Affordable Housing Program term sheet.
The information in this document is not a replacement or substitute for information found in the Delegated Underwriting for Targeted Affordable HousingSM Guide on AllRegs. Terms set forth herein are subject to change without notice.