This story was originally published in Affordable Housing Finance.

Freddie Mac announced it has closed a low-income housing tax credit (LIHTC) fund with Hudson Housing Capital and its first investment within that fund.

The closing marks the company’s second LIHTC fund since re-entering the market earlier in September and the first fund managed by Hudson.

The Hudson Housing Tax Credit Fund will invest nationwide to create and preserve affordable homes. It will focus on transactions in areas that have been underserved over the past decade, such as rural communities, 4% LIHTC financing, and developments that provide intensive supportive services to their residents. The fund will provide as much as $100 million in targeted affordable housing investments, with more investments possible as additional transactions are closed.

Freddie Mac and Hudson announced a $17.5 million LIHTC equity investment through the fund for Lord Road Apartments, which will provide 324 homes for residents of San Antonio, a growing city that is experiencing a material shortage of affordable rental housing. Freddie Mac is also providing $26 million in permanent debt financing for the development. The property’s sponsor is NRP Enterprises, a full-service developer, general contractor, and property manager with a portfolio of more than 20,000 units.

Lord Road Apartments will range from one- to four-bedroom units and offer homes to families earning between 50% and 60% of the area median income.

“We are excited to partner with Hudson Housing Capital on this fund, which will invest in affordable housing projects across the country,” said David Leopold, vice president for Targeted Affordable Sales and Investments at Freddie Mac. “Lord Road Apartments, the first transaction within this fund, will provide 324 quality, affordable housing units for very low-income families in the growing San Antonio community. We look forward to future investments that will provide needed capital for developers that are working to provide housing in similar areas across the country.”

Since 1998, Hudson Housing Capital has invested $5 billion in tax credit equity to finance homes. Founded in 1998, the firm has syndicated over 500 LIHTC investments preserving or creating over 50,000 multifamily rental units.

“Our partnership with Freddie Mac will help us fund attractive and affordable housing for diverse communities throughout the nation,” said Sam Ganeshan, managing director at Hudson Housing Capital. “The Lord Road Apartments development in San Antonio is the first of many such investments that will make affordable housing more available to low- and moderate-income families.”

Earlier, Freddie Mac announced closing a LIHTC fund with Enterprise Community Investment, now Enterprise Housing Credit Investments, since re-entering the housing tax credit market.

This story was originally published in Affordable Housing Finance.