NEW YORK, NY – June 9, 2009 – (RealEstateRama) – The New York City Housing Development Corporation (HDC) approved $378 million in Multi-Family Revenue tax-exempt bonds for the permanent financing and first position of construction for developments located in Manhattan, Brooklyn, and the Bronx. Approximately $115 million will be recycled bonds. The recycled bonds were issued in accordance with the Federal Housing and Economic Recovery Act of 2008 (“HERA”), which allows for the refunding of tax-exempt multifamily housing bonds and using the refunding proceeds to finance new development activity without having to use new private activity bond cap. Under the law, housing agencies such as HDC have six months to make a loan from recycled bonds. Over the course of the next several years, HDC anticipates benefitting from as much as $600 million in recycled bond capacity.
The 2009 Series C Bonds will not exceed $285 million, which will consist of $245 million subject to the Private Activity Bond Volume Cap and a recycled bond issuance of $40 million. The 2009 Series D Bonds will not exceed $18 million and will also be subject to the Private Activity Bond Volume Cap and will be issued on a fixed rate basis. These bonds together will provide first position construction and permanent financing for the new construction or rehabilitation of up to 12 developments with a total of 2,070 units located in Manhattan, Brooklyn and the Bronx. Up to 10 projects will be financed under HDC’s Low-Income Affordable Marketplace Program (“LAMP”) and 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. Two projects are to be developed under the New Housing Opportunities Program (“New HOP”) and will be rented to households earning no more than 80%of the AMI, which is currently $61,440 for a family of four. Two of the proposed projects to be financed with 2009 Series C, St, Ann’s ABH and St. Ann’s CDE.
The 2009 Series E Bonds will not exceed $75 million and will be a recycled bond issuance in accordance with the Federal Housing and Economic Recovery Act of 2008 (“HERA”). These bonds will be issued as Convertible Option Bonds (“COB”) and will provide first position construction and permanent financing for the new construction of certain development, all of which will reserve a minimum of 20% of the units for low-income tenants earning no more than 50% of the AMI or 25% of the units for households earning no more than 60% of the AMI.
About HDC
The New York City Housing Development Corporation (HDC) provides a variety of financing programs for the creation and preservation of multi-family housing that meets the wide range of affordable housing needs of the City’s economically diverse population.
In 2008, HDC issued more than $1.3 billion worth of bonds in the calendar year, including approximately $500 million in tax-exempt housing revenue bonds, enabling HDC to finance the construction and/or preservation of 7,371 apartments and making it the nation’s #1 issuer of affordable housing bonds. For more information visit www.nychdc.com
Contacts:
Christina Sanchez (HDC), (212)-227-2644, csanchez (at) nychdc (dot) com
