Tenant Advancement Commitment Financing Overview

This document is a guide detailing the Tenant Advancement Commitments offered by Freddie Mac, which aim to provide favorable financing options for borrowers who seek to maintain affordable rent levels for middle-income residents. The commitments are designed to address the rent affordability crisis by allowing borrowers to preserve rents at conventional properties through voluntary restrictions. The document outlines the structure of the Master Financing Commitment, which enables borrowers to negotiate terms for loans while ensuring a portion of units remain affordable. Key aspects include the evaluation of borrowers based on the affordability of set-aside units, the requirement for borrower-provided social services in certain markets, and the commitment size and term. Additionally, it specifies the loan terms, including fixed and floating-rate options, and the Preservation of Affordable Rent Covenant (PARC) that mandates compliance with affordability levels. The guide emphasizes the importance of annual monitoring to ensure continued affordability and outlines the consequences of noncompliance.