NEW YORK, NY., October 31, 2008 – (RealEstateRama) – The New York City Housing Development Corporation (HDC) today announced it has approved the issuance of its Multi-Family Housing Revenue Bonds in an amount not to exceed $160,000,000. Interest on the 2008 Series I Bonds will be exempt from Federal, state and local income tax.
The HDC bond issuance will be the first “recycled” bond issuance in the nation since H.R.3221, the Housing and Economic Recovery Act of 2008 (“HERA”), was signed into law in July 2008. This new act allows for the refunding of tax-exempt multi-family housing bonds and forwarding such refunding income for the financing of additional projects without having to use new private activity bond volume cap. In order to make the recycling authorization of HERA possible, HDC must issue refunding bonds before redeeming bonds from prepayment proceeds. HDC has been currently pooling prepayment proceeds from approximately 15 projects in an amount expected to be about $120,000,000 and will cause the redemption of the related bonds shortly after the delivery of the 2008 Bonds.
The 2008 Series I Bonds will be issued as variable-rate Convertible Option Bonds (“COB”) but will be at a fixed term rate not expected to exceed 5.50% until May 13, 2009, unless redeemed earlier.
The bond issuance is expected to provide for the first phase of construction and permanent financing of new construction for several developments, which will reserve a minimum of 20% of the units for people earning no more than 50% of the AMI, or 25% of the units for people earning no more than 60% of the AMI.
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. HDC is implementing Mayor Bloomberg’s New Housing Marketplace Plan to build and preserve 165,000 units of affordable housing over ten years. The New Housing Marketplace Plan is the largest municipal affordable housing effort in the nation’s history. HDC’s programs are designed to meet the wide-range of affordable housing needs of the City’s economically diverse population.
Phone: (212) 227-2644