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Freddie Mac Optigo®
Employer-Enabled Permanent Supportive Housing
ADDRESSING HOMELESSNESS THROUGH EMPLOYMENT AT PROPERTIES WITH SUPPORTIVE HOUSING
According to the U.S. Department of Housing and Urban Development, there are over half a million people who experiencehomelessness throughout the United States.
Freddie Mac Multifamily has made addressing homelessness a priority. As part of this effort, Freddie Mac has paved the way to financeproperties with sponsors that offer Employer-Enabled Permanent Supportive Housing (EPSH).
Through this initiative, nonprofit organizations and multifamily borrowers are working together to train, employ and provide housing forunhoused individuals
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HOW EPSH WORKS
- Job Training: Borrowers engage external or affiliate nonprofits that train individuals at risk of homelessness for employment opportunities at multifamily properties.
- Employment: Borrowers select candidates via a standard interview process.
- Housing: Borrowers provide a discounted unit to hired individuals.
- GPR Consideration: Freddie Mac will underwrite up to two discounted employee units per property to average in-place gross potential rent (GPR) without an associated expense, mitigating any reduction in proceeds to the borrower.
- Eligible Products: EPSH can be applied across all Freddie Mac financing, except: <50-unit properties, Value-Add, Lease-Up, Seniors, MHC, Conventional Small and Non-LIHTC Preservation Rehab.
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BENEFITS FOR BORROWERS
- For eligible products, the relevant employee unit may be underwritten to average in-place GPR without an associated expense.
- Helps borrowers find well-trained and suitable employees, especially during property management labor shortages.
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BENEFITS FOR INDIVIDUALS
- Ability to earn market wages as well as a potentially discounted employee unit.
- The combination of stable employment and a 12-month lease can aid homeless individuals in their efforts to return to self-sufficiency.
- Nonprofits with EPSH programs offer professional development beyond the on-the-job experience selected candidates would gain.
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DOCUMENTATION REQUIREMENTS
Borrower must provide Partnership Agreement with nonprofit and EPSH Borrower Certification during origination underwriting to qualify.
