Letter to the Community
As our invaluable community partners, we want to update you on the future direction of the Freddie Mac Foundation – and outline the Foundation's financial commitment to, and thought leadership in, the community in the years ahead.
Freddie Mac, as you know, has been in conservatorship since 2008, regulated by the Federal Housing Finance Agency (FHFA). During conservatorship, the Freddie Mac Foundation, which is self-funded, has continued to invest in nonprofit organizations through its endowment, which was created and funded by an irrevocable trust in 2003. The endowment allows us to continue the Foundation's important work without Freddie Mac (corporate) or taxpayer funding.
Recently, the FHFA directed that the Foundation implement a three-year wind down plan beginning in 2012. As a result of the FHFA's instructions, we have decided to proceed as follows:
The Foundation will continue to make grants and actively fund nonprofit programs that address critical community needs through 2014. During this period, our annual community investments will substantially exceed our CY 2010 spending levels.
We will continue to invest in nonprofits and high impact programs that achieve measurable results and demonstrably improve outcomes and the quality of life of vulnerable children and families, especially those in traditionally under-served communities.
- In early 2015, we anticipate distributing the remaining Foundation assets, if any, by providing grants to especially effective grantees and highly successful programs and models. Our goal is to help high performing nonprofits leverage our existing resources to sustain essential programs, services, and funding streams well into the future, and beyond the probable life-span of the Foundation.
A recent partnership with the Local Initiatives Support Corporation (LISC) is just one example of how we're responding to specific community needs in sustainable ways. This particular collaboration creates a structured evergreen fund that would be used to help cover the predevelopment costs associated with the development of affordable, low-income housing. This predevelopment funding pool addresses an often hard-to-fill funding gap in the financing of affordable housing. We fully expect these funds to be leveraged to facilitate construction lending and permanent financing so that affordable homes with resident and supportive services can be built or renovated and brought, or brought back, on line.
The Foundation's core mission is as important as ever and our key focus remains the same: making home a place where children and families thrive. Most of our investments will continue to be housing-related through our Stable Homes, Stable Families portfolio. These investments will help move homeless families to permanent housing with comprehensive supportive services. As always, we will continue to work with our public, private, and nonprofit partners together to move children and families from dependency to self-sufficiency and eventual prosperity – and to sustain them in stable and safe housing along the way.
Equally vital are our partnerships to find permanent homes for foster children nationwide, and our investments to improve the academic preparation and performance of, and career opportunities for, vulnerable young people.
The Freddie Mac Foundation is proud of our 20-year legacy of investing wisely in our communities, and our propensity for working collaboratively with our many partners. We are privileged to work with people, organizations, and agencies like you, who along with us are making a real, measurable difference in the lives of children and their families for generations to come.