Freddie Mac Multifamily said that it will soon go to market with the issuance of $92.8 million in social bonds supporting 1,500 units across four senior housing properties in Arizona. Freddie Mac said more than half the units are affordable to seniors with incomes at or below 50 percent of area median income according to its.

“Freddie Mac is committed to supporting affordable multifamily senior housing through this social bond issuance,” Robert Koontz, senior vice president of Freddie Mac Multifamily Capital Markets, said in a release. “We continue to use our innovative execution paths to support our affordable housing mission and provide investors the opportunity to do so as well.”

The loans originated by Berkadia Seniors Housing & Healthcare are for properties owned by Christian Care, which is the largest provider of non-profit senior housing and healthcare services in Arizona. Christian Care focuses on providing housing for low- and moderate-income seniors.

The social bonds structured transaction is a REMIC – FHMR 2022-P013 – issuance backed by a pool of multifamily PCs.

“Freddie Mac is thrilled to provide financing that supports affordable housing for more than 1,500 Arizona seniors,” Kathy Ryser, senior director of Underwriting for Freddie Mac’s Multifamily Seniors Housing team, said. “This work aligns directly with our mission and helps meet a tremendous need in the market.”

According to the company’s social bonds framework, the proceeds of Freddie Mac’s social bonds are used either to provide liquidity to social impact financial institutions for financing of affordable housing or to finance multifamily properties originated by the Freddie Mac Multifamily Optigo network that are affordable to an underserved population.  

Institutions receiving liquidity and properties financed from social bonds proceeds are expected to foster various socioeconomic opportunities for residents and their communities, in addition to providing affordable housing to low- to moderate-income families, Freddie Mac said.