Newmark Group, Inc. secured a $400 million Tenant Advancement Commitment (TAC) on behalf of borrower Comunidad Partners, a vertically integrated real estate investment firm specializing in workforce and affordable housing in culturally diverse communities throughout the U.S. Newmark Vice Chairman and Head of Workforce Housing Anthony Tarter represented the borrower in the transaction. TACs are a contemporary form of competitive financing offered by Freddie Mac to private-sector operators who agree to self-impose rent restrictions, helping to preserve or create affordability at properties that do not have regulatory rent or income restrictions. As part of this innovative program, multifamily borrowers also provide resident social impact services at each property.

Comunidad Partners has agreed to self-restrict rent prices for a portion of homes in communities across its portfolio in exchange for advantageous loan terms and favorable pricing. The rent protections in place support FHFA's mission of preserving affordability for its newly defined category of workforce housing, with units set aside for those earning at or below 80% of the Area Median Income (AMI), at or below 60% of the AMI or a mixed-income combination of the two. These rent protections will be preserved throughout the loan term.

Additionally, resident social impact services will be provided for each community, including virtual healthcare services, afterschool tutoring, access to jobs and economic advancement opportunities that can lead to improved household income and other equity/wealth-building programs for residents. Comunidad Partners expects to create and preserve affordability in 4,000 to 5,000 units in 20 to 25 communities through this new TAC. Newmark and Comunidad Partners have arranged for the first transaction under the TAC to be a $21 million loan to finance and renovate Villas at Shadow Oaks in Austin, Texas. The 176-unit community is 100% rented at or below 80% AMI, and 50% of the units are rented at or below 60% AMI. Veritas Impact Partners, a tenant-focused non-profit, will implement resident social impact programs around economic advancement, health and wellness, education, equity and inclusion.

In 2021, Comunidad Partners was named Freddie Mac's Inaugural Impact Sponsor of the Year after partnering with the lender for a $300 million Master Financing Commitment (MFC) that year.