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HDC Press Releases
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New York City Housing Development Corporation
Closes Financing For the First Development
to Use Subsidy Generated Through the
Liberty Bond Program
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New York, NY, July 17, 2003
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The New York City Housing Development Corporation (HDC) announced today the closing of the first development utilizing the affordable housing subsidy generated through its Liberty Bond Program. The 72-unit deal, known as Beach 96th Street, is located in Far Rockaway, Queens at 95-01 Rockaway Beach Boulevard. HDC requires developers utilizing its Liberty Bond allocation to pay a three-percent origination fee. HDC then uses the proceeds of its fee to fund affordable housing development throughout the City.
Financing for Beach 96th Street is being made available through HDC's New Housing Opportunities Program (New HOP). Under this program, HDC provides a market rate first mortgage and a subsidized second mortgage which enables the rents to be affordable to moderate income New Yorkers and lower than market rents. Rents at Beach 96th average $1,100 for a two-bedroom apartment, representing a 15% discount to market.
HDC has provided a $5,380,000 construction loan that will be rolled over to a permanent first mortgage loan. In addition, HDC has provided a $2,880,000 second position construction and permanent mortgage loan. The funds for this second mortgage were generated by 90 Washington Street, the first HDC development that received financing through its Liberty Bond Program. 90 Washington Street closed on July 9, 2003. "By imposing this fee on developers using Liberty Bond financing through HDC, we are able to create more affordable housing for hardworking New Yorkers," stated William Traylor, Acting President, HDC.
"Financing through HDC's New HOP program is the reason why the development will be made so affordable to tenants." stated Sally Tayeb, a construction manager representing the developer. "We are pleased to be able to bring affordable housing to the Rockaways."
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