FREDDIE MAC AND AMERICAN PROPERTY FINANCING ANNOUNCE A TRIO OF COMPLETED TRANSACTIONS

All Are Credit Enhancements of Tax-Exempt Bonds Issued by New York State Housing Finance Agency

McLean, VA – Freddie Mac and American Property Financing (APF) announced a recently completed trio of transactions totaling $169 million, all involving Freddie Mac's credit enhancement of tax-exempt bonds issued by the New York State Housing Finance Agency (HFA). These transactions are considered to be contributing to the revitalization of several neighborhoods in the greater New York City metropolitan area.

Hampton Court
Freddie Mac provided a $55 million permanent bond credit enhancement to take out a construction letter of credit for a repeat borrower, a prominent New York City developer affiliated with Glenwood Management. The variable-rate, tax-exempt bonds are secured by Hampton Court, a newly constructed 229-unit building, located in the East Harlem section of Manhattan.

"Freddie Mac came up with attractive pricing and terms for enhancements, which enabled us to offer a structure that appealed to the borrower," said Erik Levy, deputy chief underwriter, APF.

Parkledge
Freddie Mac enhanced $39 million worth of tax-exempt bonds using its affordable forward commitment, which enabled another repeat borrower, the Wishcamper Group, to substantially rehabilitate Parkledge Apartments in Yonkers, N.Y. A majority of the tenants in this 311-unit building receive Section 8 assistance.

The rehabilitation included improvements to the property's major building components, security, and exterior, along with significant upgrades to tenants' apartments.

"Rehabilitation was completed and the bonds were easily converted to a permanent bond credit enhancement. Once again, Freddie Mac's terms and pricing created a winning package for the borrower," said Levy.

West 42nd Street
Freddie Mac also provided a credit enhancement of $75 million in variable-rate, tax-exempt bonds to the borrower on this property. The bonds are secured by a four year-old, 264-unit building located just west of Times Square on West 42nd Street in Manhattan.

"Freddie Mac is always pleased to play a role in the revitalization of communities. We were especially happy that, with the help of our partner, American Property Financing, we were able to use our basic tax-exempt credit enhancement program to meet the needs of these three developers in very diverse situations," said Paula Levine, Freddie Mac's Northeast regional office managing director.

Since the introduction of the Freddie Mac Program Plus network of multifamily loan originators and servicers in 1993, Freddie Mac has provided financing for over 40,000 multifamily properties totaling more than $100 billion.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage passthrough securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and nearly four million renters.

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