FREDDIE MAC PROVIDES NEARLY $74 MILLION IN MAJOR NEW YORK CITY AFFORDABLE HOUSING DEAL

McLean, VA – Freddie Mac (NYSE: FRE) provided $73.9 million in bond credit enhancements for borrower, The DeMatteis Organization, as part of a credit facility with Wachovia Multifamily Capital and Red Stone Partners. The DeMatteis Organization will use the funds to help preserve Linden Plaza, a 1,527-unit affordable housing complex in Brooklyn, New York. The transaction brings New York City's $7.5 billion New Housing Marketplace Plan for the development and preservation of 165,000 affordable housing residences closer to fruition.

Red Stone Partners provided the first-loss mezzanine credit enhancement for the credit facility and arranged for the direct placement of $35 million in tax credit equity with a single investor. The borrower utilized the Freddie Mac Low-Income Housing Tax Credit Moderate Rehabilitation 4% Tax Credit Tax-Exempt Bond execution.

Developed in 1971, the Linden Plaza complex encompasses five 17-story and 18-story towers, six townhouse complexes, and four parking facilities. It is situated on an elevated concrete deck over the city's Metropolitan Transit Authority Pitkin Subway yard.

"We are very pleased to complete this transaction with Wachovia Multifamily Capital and Red Stone Partners," said Kim Griffith, Freddie Mac vice president of Affordable Sales and Investments. "Linden Plaza is a great preservation deal, which is helping to revitalize the community. We worked with various public and private entities on this complex deal. We are proud to provide highly-structured financing for much-needed affordable housing."

Daniel Cunningham, Wachovia's head of Affordable Housing, added, "We needed an efficient and elegant solution to a complex set of challenges. Freddie Mac proved its mettle as a consistent source of credit and liquidity in multifamily housing, and being a fully approved Freddie Mac delegated underwriter plays a huge role in allowing us to bring these deals over the finish line."

Ray Savino, chief financial officer for Development at the DeMatteis Organization, said, "We knew Freddie Mac would understand the challenges to Linden's financing plan and focus immediately on finding solutions. Freddie Mac made important contributions to a demanding process that resulted in financing for the revitalization of this important affordable housing resource."

Since the introduction of the Freddie Mac Program Plus® network of multifamily loan originators and servicers in 1993, Freddie Mac has provided financing for approximately 55,000 multifamily properties totaling more than $194 billion.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac raises capital on Wall Street and throughout the world's capital markets to finance mortgages for families across America. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

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