New York City Housing Development Corporation Approves $106 Million
for Mitchell-Lama Preservation, New Cooperative and Rental Developments
Over 2,200 units preserved or created, including the
first units to recieve financing through the new cooperative homeownership
program
New York, NY, May 10, 2005
The New York City Housing Development Corporation (HDC), the nation's number one issuer of housing bonds for affordable housing, held a meeting of its Members today to approve financing for the creation and preservation of more than 2,200 apartments. As part of the Mayor's New Housing Marketplace Program, the Members approved $106 million in tax-exempt and taxable bond financing for low and middle-income units located throughout the City.
The first transaction approved by the Members includes the sale of $82 million of tax exempt and taxable bonds through HDC's open resolution, which will be used to fund two separate initiatives. Through HDC's Mitchell-Lama Preservation Program, $27 million will be used to restructure the mortgages of four developments with over 1,900 apartments. This action will maintain the affordability of these properties, located in Manhattan and Brooklyn, for a minimum of fifteen years. This is in addition to the 6,205 apartments preserved through this program during the first phase of financing provided at the end of 2004. The remaining $55 million will be used to replace corporate reserve financing previously used to make mortgages on other affordable developments. This action allows HDC to raise funds needed to provide low-interest second mortgage loans for new developments.
An 88-unit apartment building to be constructed at 2007 LaFontaine Avenue, in the East Tremont section of the Bronx, was approved to receive $9 million through HDC's Low-income Affordable Marketplace Program (LAMP). In accordance with the income guidelines of this program, this newly constructed, 7-story development will be income-restricted for households earning up to $26,400 for an individual and up to $37,680 for a family of four. Nine of the units will be reserved for the formerly homeless. Amenities include a laundry room and onsite parking.
The Members also approved $15 million in taxable bonds for the first bond issuance through HDCs new Cooperative Homeownership Program. In December 2004, this program was initiated in partnership with the Bank of America (BOA) as a way to encourage the construction of affordable homeownership developments. This first transaction includes $8 million of taxable bonds to be sold to BOA to make first mortgages for two newly constructed developments:
- The Sutton, an 11-story building with 135 apartments reserved for
middle-income tenants to be located at 102 Bradhurst Avenue in Central
Harlem. In addition to the $4.5 million in taxable bonds sold to make a
first mortgage, HDC is providing $6.1 million of its corporate reserves
to finance a 1% interest second mortgage.
- Bushwick Gardens, two 8-story buildings containing a total of 88 apartments reserved for middle-income tenants to be located at 80-88 Beaver Street in Brooklyn. A first mortgage is being made through the sale of $3.9 million in taxable bonds and a 1% interest second mortgage is being made through $3.9 million from HDC corporate reserves.
The New York City Housing Development Corporation (HDC) is the nation's number one issuer of bonds for multi-family affordable housing. Established in 1971 as a public benefit corporation, HDC facilitates the creation of affordable housing throughout the five boroughs by providing below- market financing. Most of HDC's loans are financed through the issuance of tax-exempt or taxable bonds, as well as through mortgages made directly from its Corporate reserves.
HDC has a seven-member governing body. Shaun Donovan, the Commissioner of the New York City Department of Housing Preservation and Development (HPD), is ex-officio Chairperson. Martha E. Stark, the Commissioner of the New York City Department of Finance (DOF), and Mark Page, the Director of the office of Management and Budget (OMB), also serve as ex-officio members. The Mayor and the Governor both appoint two members to HDC's governing body. Harry E. Gould, Jr. and Peter Madonia are Mayoral appointees, with Mr. Madonia serving as Vice Chairperson. Michael Kelly and Charles O. Moerdler were appointed by the Governor.