NEW YORK, NY – December 10, 2008 – (RealEstateRama) – Today, The New York City Housing Development Corporation (“HDC”) issued $228,000,000 of tax-exempt and taxable Multi-Family Housing Revenue Bonds to refinance, preserve, and provide construction loan financing for a total of 1019 units of affordable housing in the Bronx, Manhattan, and Brooklyn. A portion of the bonds will be utilized for replenishment of the unrestricted corporate reserves; which can then be re-lent to new developments in the furtherance of the Corporations commitment to the Mayor’s New Housing Marketplace Plan.
The Corporation will issue an amount not to exceed $12,000,000 in taxable bonds . Approximately $7,500,000 of the proceeds will be utilized in order to refinance and restructure the first and second mortgages of “Tanya Towers” under the Mitchell Lama Restructuring Program (“MLRP”). The refinancing the affordability of Tanya Towers, a 138-unit rental located at 620 East 13th Street in Manhattan. HDC has successfully refinanced over 32 Mitchell Lama developments with over 18,000 units under its Mitchell-Lama Restructuring and Preservation programs. $4,500,000 of the proceeds will be used to refund certain of the Corporation’s outstanding Mutli-Family Housing Limited Obligation Bonds (“MFHLOB”) that were previously issued to acquire the First Mortgage on Tivoli Towers.
$71,000,000 of the Corporation’s tax-exempt bonds will be used to provide first position and construction and permanent financing under HDC’s Low-Income Affordable Housing Marketplace Program (“LAMP”) for the new construction or rehabilitation of up to five developments with a total of approximately 900 units located in the Bronx and Brooklyn. All of the units in the LAMP Developments are anticipated to be rented to households earning no more than 60% of the AMI, which is currently $46,080 for a family of four, with the exception of 18 units in one LAMP development that will be affordable to households earning up to 80% of the AMI, which is currently $61,440 for a family of four.
Each of the LAMP developments will also receive subordinate financing from the Corporation. The LAMP Subordinate Loans will receive an interest rate of 1% and will be funded from the Corporation’s unrestricted reserves. HDC anticipates on utilizing $21,000,000 of unrestricted corporate reserves to finance subordinate mortgages. The funds will be advanced during construction and remain in each project as permanent loan. In order to qualify for this subsidy, a portion of each development’s units (20%) must be reserved for those individuals determined to be homeless by The City of New York or for households earning no more than 40% AMI. As a result, about 21 units are expected to be reserved for formerly homeless tenants and approximately 50 units are expected to be set aside for households at 40% AMI.
Lastly, about $35,000,000 in taxable bond proceeds will be issued to refund or refinance certain of the Corporation’s outstanding 2008 Series C and Series G Housing Revenue Bonds that were originally issued to the Corporation’s Mitchell Lama Restructuring Program (“MLRP”) with a standby bond purchase agreement provided by Dexia Credit Local.
In connection with the Corporation’ s AHPLP, LAMP, ModRehab, New HOP, Section 8 and other miscellaneous programs, the Members have previously approved the utilization of the Corporation’s reserves to fund both senior and subordinate loans. In order to raise funds to meet the Corporation’s goals under the Mayor’s New Housing Marketplace Plan, recommendations have been made to the Members to approve the issuance of the 2008 Series K Bonds to: 1) acquire approximately 59 of these previously funded loans, 2) redeem the Corporation’s Mutli-Family Housing Revenue Bonds, 2008 Series B, issued under the General Resolution, and 3) reimburse the Corporation for the amounts advanced to redeem all or a portion of the Corporation’s Multi-Family Housing Revenue Bonds, 1994 Series A, 1995 Series A, 1997 Series A, 1997 Series B, and 2000 Series A, issued under the General Resolution. The issuance of the 2008 Series K Bonds will allow for replenishment of the Corporation’s reserves, which can then be re-lent to new developments in furtherance of the Corporation’s commitment to the Mayor’s New Housing Marketplace Plan.
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. Our programs are designed to meet the wide-range of affordable housing needs of the City’s economically diverse population.
Christina Sanchez (HDC)
csanchez (at) nychdc (dot) com