Affordable Properties and the Freddie Mac SBL Program
Some affordable properties are eligible for Freddie Mac Small Balance Loans, while others are not. Affordable properties with non-profit borrowers, as well as early and mid-stage Low-Income Housing Tax Credit (LIHTC) deals are not permitted, however, rent-controlled properties, and properties with market-rate Section 8 vouchers are eligible. Below, we have provided a full list of affordable property types that are eligible and ineligible for the Optigo Small Balance Loan program.
SBL-Eligible Property Types
- Properties with income/rent restrictions occurring as a result of local laws/regulations, and not actually listed on the property title (ex. rent control)
- Properties with less than half of leases guaranteed by a legitimate non-profit with a minimum of 36 months of experience in low-income housing
- Properties with tax abatements (no rent or income restrictions may be on property title)
- Properties with market-level Section 8 tenant vouchers
SBL-Ineligible Property Types
- All properties owned by non-profit borrowers
- Housing Assistance Payment (HAP) contract properties
- Properties involving rental/income restrictions or a regulatory agreement on the property’s title
- LIHTC deals (both 4% or 9%) with a Land Use Regulatory Agreement (LURA) currently in place (generally including properties in their extended use period)