KG Bond Framework

The 2024 version represents a significant structural and scope expansion of Freddie Mac's green bonds framework. The most notable change is the explicit shift from single-family housing focus to a multifamily-focused program, with dedicated sections now covering Freddie Mac Multifamily's specific role as a capital provider for environmental improvements in affordable and workforce rental housing. The framework has been reorganized with new appendices addressing sustainability strategy and defined terms, and reporting requirements have been substantially expanded with detailed breakdowns of asset-level, portfolio-level, and investor-level reporting. The 2024 version also introduces explicit alignment with the Green Bond Principles (GBP) administered by the International Capital Markets Association, establishing a clearer standards-based framework for transparency and disclosure.

• modified Use of Proceeds — Shifted primary focus from single-family green mortgages to Freddie Mac Multifamily environmental improvements in affordable and workforce rental housing
• added Standards Alignment — Explicit reference to Green Bond Principles (GBP) as administered by the International Capital Markets Association added as the voluntary process guidelines framework
• expanded Eligibility Criteria — Added specific focus on affordable and workforce rental housing as eligible assets for environmental improvements financing
• expanded Reporting — Introduced detailed breakdown of reporting into three categories: asset-level reporting, portfolio-level reporting, and investor reporting, replacing the generic reporting section
• added Program Governance — Added Section VII on Second Opinion requirement, establishing third-party verification of green bond compliance
• expanded Program Documentation — Added three comprehensive appendices: Freddie Mac Overview, Freddie Mac's Sustainability Strategy, and Glossary of Defined Terms, providing enhanced transparency and clarity