Freddie Mac's newly unveiled loan program may provide a mechanism for higher education institutions to offer workforce or professional student housing through public-private partnerships. Institutions' long range real estate plans align well with Freddie Mac's goal of providing long term affordable housing with capped rental rate increases.
As more institutions seek to attract and retain talent by offering affordable housing options, A&M's dedicated P3 practice will be monitoring creative alternative financing methods.
Freddie Mac, the country’s largest backer of apartment loans, is rolling out a new program that will offer lower-cost financing to owners who agree to cap rent increases for the life of their loans. The initiative acts similar to rent control—which has been gaining traction in many parts of the country—by keeping units in private hands and controlling the rate of rent increases. But it comes with less political baggage because it is voluntary.