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.