FREDDIE MAC AIDS IN THE ACQUISITION AND REHABILITATION OF HOUSING IN SOUTHERN CALIFORNIA WITH NEW MOD REHAB EXECUTION

McLean, VA – In conjunction with MMA Financial, Freddie Mac (NYSE:FRE) closed a credit enhancement commitment for $22.2 million in bond financing enabling repeat borrower, Vaughn Bay Construction/Cambridge Management to acquire and rehabilitate the Vizcaya Apartments in Santa Maria, Calif. MMA also provided approximately $11.5 million in tax credit equity for this transaction, which benefited from a modified version of the Mod Rehab product. Approximately 50 percent of the property's tenants receive Section 8 tenant vouchers benefits.

"This is one of our first immediate-funding Mod Rehab bond executions to close in California," said Kim Griffith, Freddie Mac vice president, Multifamily Affordable Sales and Investments. "We're pleased that our team was able to work creatively with MMA to come up with a financing solution that worked for this development. We're also proud to provide financing for affordable housing in a part of the country where a tremendous need for such housing exists."

"Freddie Mac showed an enormous amount of flexibility and creativity in structuring this transaction," said Tim Leonard, managing director, MMA Financial. "We were able to structure a modified version of the Mod Rehab program by utilizing a repair agreement in lieu of a repair escrow, which eliminated the need to escrow the rehab monies up front. Freddie Mac additionally made accommodations to several other aspects of the execution, accommodations that helped mitigate risk during the rehab period."

"Vizcaya was my sixth transaction with Freddie Mac and their loan structure, terms, and flexibility were an integral component of making this a very successful development," said J. David Page, principal of Vaughn Bay Construction and Cambridge Management. "I look forward to offering many more investment opportunities to Freddie Mac and to continuing to grow our relationship."

Vizcaya Apartments were constructed in 1992 on 13 acres. It is made up of 44 buildings for a total of 236 units. Those units are broken down into 24 one-bedroom units, 112 two-bedroom units, 80 three-bedroom units and 20 four-bedroom units. Amenities include walk-in closets, well-equipped kitchens, extra storage and private patio or balcony. The property boasts a swimming pool, playground, laundry facilities, picnic area and gated access.

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-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters.

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