NEW YORK, NY – February 18, 2009 – (RealEstateRama) — The New York State Housing Finance Agency (HFA) today issued its revised 2009 allocation criteria for developers seeking private activity tax-exempt bond financing for so-called 80/20 multifamily rental projects in New York City.
“Despite the economic slowdown, there continues to be great demand for private activity bonds,” said Priscilla Almodovar, HFA President and Chief Executive Officer. “We have established a fair and equitable process for allocating this scarce resource, which recognizes the continued need for new affordable housing as well as for economic activity in New York City. Our 2009 criteria reinforce the Paterson administration’s goal of creating affordable housing for all New Yorkers.”
To qualify for an allocation of private activity bonds, or volume cap, developers of 80/20 multifamily rental projects must agree to set aside 20% of the units for low-income households with incomes at or below 50% of the Area Median Income, or 25% of units for households with incomes at or below 60% of AMI. The current AMI in New York City for a family of four is $59,700.
HFA created the guidelines because demand for volume cap exceeds the amount available to New York State. Under Federal law, $1.75 billion in bonding authority has been allocated to the state for 2009 for all statewide economic development activity funded with private activity bonds, including housing.
As it did last year, HFA anticipates allocating up to $1 billion in volume cap over the next three years for New York City 80/20 multifamily rental projects. About $400 million has already been committed, leaving $600 million available for new commitments.
To maximize use of volume cap, HFA views $1.5 million per low-income unit as an efficient use of its bonding authority. The agency will also review applications to determine which projects can close by September 30, 2009.
HFA will accept applications from owners of three types of developments: new 80/20 projects; market-rate projects under construction or nearing completion willing to convert to 80/20 status; and existing 80/20 projects willing to increase their share of affordable units.
The criteria HFA will use to determine volume cap eligibility include:
• Project-readiness based on: construction readiness and progress obtaining building permits;
finance readiness as evidenced by an executed term sheet or commitment letter; and each
applicant’s performance history completing government-funded projects.
• Compliance with New York City planning and development goals, such as projects designed to
spark nearby high-priority development or projects on city-owned land.
• Increasing the duration of affordability of low-income units beyond HFA’s standard requirements
or setting aside more than 20% of the units for low-income tenants.
• Inclusion of units for special needs tenants who are hard to house.
• Participation in the New York State Energy Research and Development Authority’s Multifamily
Performance Program for energy efficiency, adoption of certain green building measures, and
proximity to mass transit, retail services and other public infrastructure.
The 80/20 term sheet is available here. The deadline to submit 2009 applications is March 31, 2009.
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The NYS Housing Finance Agency was created in 1960 to sell bonds to finance the construction and rehabilitation of multi-family affordable rental housing in New York State.
Contact: Philip Lentz
Director of Communications
212-872-0679
plentz (at) nyhomes (dot) org
