NEW YORK, NY – December 3, 2009 – (RealEstateRama) — The New York City Housing Development Corporation (HDC) Board of Directors voted today to approve $850 million in tax-exempt and taxable Multi-Family Housing Revenue Bonds for the construction and permanent financing for affordable housing developments in New York City.
Approximately $500 million, from 2009 Series N and O Bonds will be issued to the Multifamily New Issue Bond Program (NIBP), a new federal program recently announced by the United States Department of the Treasury, Fannie Mae and Freddie Mac to provide financing for HFAs to issue new housing bonds to fund new mortgage loans.
The 2009 Series K Bonds approved today will not exceed $150 million and will be used to provide first position construction and permanent financing at a fixed rate not to exceed 7%. $115 million will be used under HDC’s Low-Income Affordable Marketplace Program (“LAMP”) for the development or rehabilitation of six developments, with a total unit count of 800 apartments located in Manhattan, Brooklyn and the Bronx. All of the units in the LAMP developments will be rented to households earning no more than 60% of the Area Median Income (“AMI”), which is currently $46,080 for a family of four. Additionally, $20 million will be utilized for the acquisition and rehabilitation of two developments with a total of 230 units located in the Bronx, under the New Housing Opportunity Program (“New HOP”). The proceeds used to finance these developments will be obtained from recycled private activity volume cap.
Five of the LAMP and New HOP developments will also receive subordinate financing totaling $30.4 million from HDC’s corporate reserves. The funds will be advanced during construction and remain in each project as a permanent loan.
Finally, $15 million from the 2009 Series K Bonds will provide additional construction and permanent financing, under the LAMP program, for the rehabilitation of two developments with a total of 475 units located in Brooklyn. Initially financed in 2003 they now require additional funds from a combination of new and recycled private activity bond volume cap.
The 2009 Series L, N and O Bonds will not exceed $650 million and will provide first position construction and permanent financing for new construction and rehabilitation in the developments in Manhattan, Brooklyn and the Bronx. A minimum of 20% of the units will either be set aside for households earning no more than 50% of the AMI or 25% of the units for households earning no more than 60% of the AMI. A portion of the 2009 Series O Bonds will be used eventually to redeem a portion of the Multi-Family Housing Revenue Bonds, 2008 Series A and Series H bonds from floating rate to a fixed rate. Those bonds were initially were issued to finance mortgage loans for the new construction of five developments.
$50 million from the 2009 Series M Bonds will be used to refund a portion of the Multi-Family Housing Revenue Bonds, 2008 Series A-1-B, and convert such bonds to fixed rate from floating rate. The 2008 Series A-1-B Bonds were issued to finance nine construction mortgage loans for the rehabilitation of three existing developments and the new construction of six developments.
In separate actions today, the HDC board also approved the issuance of $43 million in taxable Multi-Family Revenue Bonds and Cooperative Housing Mortgage Revenue Bonds for the Via Verde project in the Bronx and $30 million in tax-exempt Multi-Family Rental Housing Revenue Bonds, for the rehabilitation of nine housing developments in the East Harlem neighborhood of Manhattan.
About the New York City Housing Development Corporation (HDC):
The New York City Housing Development Corporation (HDC) provides a variety of financing programs for the creation and preservation of multi-family affordable housing throughout the five boroughs of New York City. Our programs are designed to meet the wide-range of affordable housing needs of the City’s economically diverse population. In partnership with the NYC Department of Housing Preservation & Development, HDC works to implement out Mayor Michael R. Bloomberg’s New Housing Marketplace plan to create of preserve 165,000 affordable housing units by 2014. Since the plan launched in 2004, HDC financed more than 43,000 homes for low- , moderate- and middle-income New Yorkers. The New York City Housing Development Corporation is rated AA by S&P and Aa2 by Moody’s.
Christina Sanchez, HDC (212) 227-2644