 The
New York City Housing
Development Corporation (HDC),
the nation's number one issuer
of bonds for multi-family
affordable housing, held a
meeting of its Members today to
approve over $317 million in
financing for the new
construction and preservation of
more than 6,000 apartments
throughout the City. Each
transaction is in conjunction
with Mayor Michael R.
Bloomberg's housing initiative
The New Housing Marketplace:
Creating Housing for the Next
Generation.
The Members approved the use of
$200 million in tax-exempt and
taxable bonds through HDC's
Mitchell-Lama Preservation
Program, which includes a
Mortgage Restructuring Program
and a Repair Loan Program.
Through these initiatives, in
exchange for low cost financing
and funds for capital
improvements, owners agree to
maintain the affordability of
their developments for a minimum
of 10 to 15 years. At the start
of the program, 27,000
apartments in HDC's
Mitchell-Lama portfolio were at
the point where owners were able
to pre-pay their mortgages and
take the developments out of the
affordable housing program.
Through this preservation
initiative more than half of the
units are expected to be
preserved. This round of
financing will be used to
preserve over 4,900 apartments,
bringing the program total to
more than 13,000 units. Another
round of financing is slated to
be approved at the end of the
year.Financing was also
approved for an eight-story,
88-unit development to be
constructed in the Bushwick
section of Brooklyn. This is the
second development to receive
financing through HDC's newly
created Affordable Co-operative
Housing Program, and the first
Brooklyn co-op to be financed
through the corporation. The
development, to be located at
80-88 Beaver Street, will
receive $3.5 million through
taxable bond proceeds for a
permanent mortgage and $3.9
million of HDC's corporate
reserves for a subordinate
construction and permanent
mortgage.
Over $38 million was approved to
finance the preservation of a
404-unit Section-8 development,
Phipps Plaza, located at 330
East 26th Street. This
development is in need of
significant capital
improvements, by funding a
low-cost mortgage the
non-profit-owner will be able to
replace the roof, renovate
kitchens and bathrooms, install
new elevators and make perform
other necessary rehabilitation
to the property.
Lastly, the Members approved
$15.2 million in tax-exempt
financing through HDC's
Low-income Affordable
Marketplace Program (LAMP),
which will be used to find the
construction of two developments
in the Bronx. Ogden Avenue
Apartments II, to be located at
1471 Ogden Avenue at Martin
Luther King Boulevard, will be a
mix of studio, one-bedroom and
two-bedroom apartments for a
total of 59 units. The second
development, White Plains
Courtyard Apartments, will be
located at 2060 White Plains
Road and will consist of a mix
of studio, one-, two-, and
three-bedroom apartments, with a
total of 100 units.
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 and preservation 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. |
