Green Communities Initiative Makes Affordable, Environmentally Friendly Homes Possible

Freddie Mac, the Enterprise Foundation and the Natural Resources Defense Council (NRDC) are working together on the Green Communities initiative to build affordable housing that is also environmentally friendly. The initiative is a five-year, $550 million commitment to build more than 8,500 environmentally friendly and affordable multifamily and single-family homes across the country. The initiative will offer financing, grants and technical assistance to developers to build affordable housing that promotes health, conserves energy and natural resources and provides easy access to schools, jobs and services.

Freddie Mac is participating in the Green Communities initiative by committing to buy low-income housing tax credits that will provide funding for green rental housing development. This is one of many commitments to purchase tax credits that Freddie Mac has made since the Low-Income Housing Tax Credit (LIHTC) program was introduced by the federal government in 1986. Freddie Mac is one of the most active investors in the tax credit market and has a portfolio of over $4 billion in closed LIHTC investments, which has resulted in the creation of over 250,000 affordable apartments to date.

Green Communities homes are apartments or single-family houses that are built according to key healthy homes principles, ensuring healthier and more comfortable living environments. Specifically, these homes are built using practices and materials that minimize moisture, provide proper ventilation, prevent pest infestations and avoid chemical and biological contaminants. Green Communities homes also will be built in neighborhoods with sidewalks or other suitable pathways to facilitate a healthy lifestyle that incorporates physical activity.

Homes sponsored by Green Communities will also save money and enhance opportunities for low-income families. For example, energy efficiency will be boosted by at least 30 percent by providing Energy Star systems, appliances and fixtures and by increasing individual control of electricity. The result will cut utility bills by hundreds of dollars a year at a time when energy costs for poor families are increasing much faster than their incomes. And, Green Communities homes will be built near mass transit systems or within walking distance to schools, jobs and services, increasing opportunities while saving individuals the high costs of car-dependency. These developments also will help combat the sprawl and traffic congestion in growing communities.

Training and technical assistance will be offered through the initiative to help housing developers “go green” by meeting the Green Communities criteria. Many of the Green Communities homes will be developed by community-based groups that build apartments and single-family houses for low-income families, such as the Low Income Housing Institute in Seattle. Socially motivated, for-profit developers will participate as well.

Additionally, Green Communities will encourage government agencies at the local, state and federal level to “green” their affordable housing programs. For example, Enterprise, NRDC and other partners will work with state agencies to dedicate a significant portion of their federal housing tax credits to healthy, energy-efficient affordable housing sited near public transportation or vital services.

The Enterprise Foundation helps America’s low-income families with their struggle out of poverty by providing decent homes, access to steady employment, quality childcare and safer streets. The Natural Resources Defense Council is a national, nonprofit organization of scientists, lawyers and environmental specialists dedicated to protecting public health and the environment.