Praxis bond purchase supports Green Advantage program
Freddie Mac program improves affordable housing and sustainability efforts
Continuing its commitment to environmental and social impact, Praxis Mutual Funds® recently purchased $3 million of FHLMC Multifamily Structured Pass Throughs Certificates. This will lead to a reduction in carbon emissions and water usage in thousands of multifamily units across the United States.
Federal Home Loan Mortgage Corp (FHLMC), also known as Freddie Mac, is a government-sponsored enterprise that supports homeownership and rental housing for low-and middle-income buyers through purchasing, guaranteeing and securitizing mortgages.
Recognizing the need for improved and affordable rental housing, Freddie Mac announced its first KG-Deal – an environmental and social impact series. This securitizes workforce housing loans made through the Green Advantage program.
Freddie Mac’s Green Advantage program, first launched in 2016, addresses both the issue of environmental sustainability and affordable housing. The program requires multifamily housing borrowers to reduce energy and water consumption by a total of 30% through improvements to existing properties. A minimum of 15% must be reduced through energy improvements.
More than 1,600 properties have already been financed through the Green Advantage program, leading to projected savings of 4.7 billion gallons of water per year and 1.8 billion kBtu per year in energy. The savings from these projects will also reduce utility costs by an estimated $138 per year for tenants, many of whom are low income. Nearly 86% of financed units are affordable to tenants with incomes equal or less than area median income.
The Freddie Mac Multifamily Green Bond Framework aligns with the core components of the Green Bond Principles (GBP) and demonstrates the enterprise’s work towards providing environmentally friendly and cost-effective housing. Since launching the Green Advantage program, Freddie Mac has purchased more than $44.7 billion of green loans and offered improved pricing and financing to over 1,100 borrowers.
About Praxis Mutual Funds
Praxis Mutual Funds, advised by Everence Capital Management, is a leading faith-based, socially responsible family of mutual funds designed to help people and groups integrate their finances with values.