does freddie mac allow a limited condo review for attached projects

“There is a little flexibility about that.” “The 25% is not an absolute hard and fast rule,” agreed Mitchell Kiffe, vice president of multifamily flow-sourcing at Freddie Mac. will do deals like that, but the predominant percentage has to be housing.” “We did a downtown deal that’s got a grocery store serving the residential tenants above it. “They do make exceptions to that for public-purpose projects, but they won’t go way above that,” said Todd Rodenberg, senior vice president and chief operating officer for KeyBank Real Estate Capital. Freddie Mac does not have a square footage restriction, but it limits the commercial income to no more than 25% of the property’s gross income.ĭevelopers might be able to get slightly larger commercial presences. “There’s a lot of very lendable properties that have mixed-use Freddie will buy the mortgages.”įannie Mae requires that no more than 20% of the effective gross income come from the commercial space and no more than 20% of the net rental space of the building be commercial space. There’s “a good percentage” of mixed-use properties that the GSEs can finance, he said. How the GSEs see mixed-useįannie and Freddie have similar guidelines for mixed-use projects, noted Trent Brooks, CEO of Freddie lender Sierra Capital Partners. They’re paying a premium to live in an urban form – and now Fannie Mae and Freddie Mac need to change.”īut both GSEs are active in the mixed-use market, and their lenders said developers who can show need for the housing and potential market support for the commercial elements can successfully do some mixed-use business with the companies. … Mixed-use is one of the best ways to provide affordable housing.

“This restriction basically segments the housing market toward separate use, which is anti-urban. “They really skew the real estate market against mixed-use housing and affordable housing,” Norquist told Affordable Housing Finance in December. Norquist, speaking in October at AHF Live: The 2005 Tax Credit Developers’ Summit in Chicago, said that mixed-use was even being adopted in urban locations by big-box retailers, which had long resisted the form, but more involvement by Fannie and Freddie would be a big help. The two government-sponsored enterprises (GSEs) have been reluctant to back housing-and-retail mixtures, according to John Norquist, president of the Congress for the New Urbanism and former mayor of Milwaukee. Fannie Mae and Freddie Mac both finance mixed-use projects, but one important critic wants them to do even more. The growing trend toward urban infill development is helping increase the popularity of mixed-use projects, in which residential and commercial elements coexist in the same development.

Does freddie mac allow a limited condo review for attached projects