June 17, 1971:
The New York City Housing Development Corporation is created by the New York State Legislature, which authorizes the corporation to sell bonds of up to $800 million. HDC is financially independent from inception having received initial funding solely from private sources.

May 1972:
HDC becomes fully operational following passage of Local Law 34 by the New York City Council as required by the HDC Act.

FY 1972:
HDC becomes the only revenue bond housing finance agency in the nation funding its mortgages with up to fifty-year financing.

HDC conducts its first bond sale for $133 million in August. The proceeds are used to finance the development of more than 3,000 units in three developments in Manhattan and Queens.

Washington Plaza Towers (1,330 units, Manhattan)
Ocean Park (598 units, Queens)
Waterside (1,100 units, Manhattan)

FY 1973:
HDC assists the Housing & Development Administration (HAD) in the administrative overhaul of the Mitchell-Lama Program.

After issuing Series B and C bonds, HDC finances the development of 2,785 units in three housing developments.

Linden Plaza (1,527 units, Brooklyn)
Ruppert Towers (549 units, Manhattan)
Yorkville Towers (709 units, Manhattan)

The U.S. Department of Housing and Urban Development (HUD) approves HDC as an FHA-insured mortgagee on October 18, 1973.

FY 1974:
Fiscal Year 1974 signals the beginning of the city's fiscal crisis, marked by a sharp and continuous rise in construction and financing costs.

Though HDC stops financing new developments through the sale of bonds because of market conditions, the corporation does finance two new developments containing 948 units through the sale of notes.

North Waterside (370 units, Manhattan)
Knickerbocker Plaza (578 units, Manhattan)

Knickerbocker Plaza, part of the Ruppert Brewery Urban Renewal Area on the Upper East Side, contains 394 units especially designed for the elderly.

FY 1975:
The city continues to suffer from the ongoing fiscal crisis. The financial world questions New York City's ability to meet its bond and note obligations.

Nevertheless, HDC is able to issue notes in February 1975 and both notes and bonds in August 1975.

Due to the cooperation and confidence of private banks, HDC is able to issue Series D and E bonds.

HDC institutes a policy of periodic and stringent review of its mortgagors' financial affairs in order to monitor the financial viability of development financed with funds from HDC.

FY 1976:
While the state's financial status begins to improve, the city's recovery is slower.

To assist the city, HDC establishes two core goals:

• To aid the city's cash position through the use of the asset value of HDC's mortgage portfolio, and
• To devise a way to help the city implement its new policy of concentrating its housing efforts on conserving its existing housing stock through rehabilitation.

HDC creates a new financial mechanism due to market conditions in which HDC would enter into a participatory mortgage loan agreement with a financial institution already holding the mortgage of a project in need of rehabilitation. The institution and HDC would share the cost of rehabilitating the project, and as part of the agreement, the institution would purchase HDC housing bonds issued for that purpose.

Bowery Savings Bank is the first to utilize this new mechanism for Kew Gardens Hills (three complexes in Kew Gardens, Queens).

Carlton Gardens (504 units)
Ambassador Gardens (357 units)
Regal Apartments (408 units)

On October 7, 1976, HDC issues Series F General Housing Bonds which are bought by Bowery Savings Bank.

HDC seeks and obtains State legislative approval of the power to issue bonds taxable by the Federal government.

FY 1977:
The fiscal crisis continues.

HDC oversees a bond sale that represents the first time that tax-exempt, modified pass-through bonds backed by Federally insured mortgages are sold to purchasers under an agreement that embodies a forward commitment at a fixed interest rate.

HDC also pursues the goal of maintaining the financial viability of the eight projects it has previously financed; negotiations between HDC, project owners and tenants succeed in this goal.

HDC receives a set-aside of Federal housing assistance payments under Section 8 of the U.S. Housing Act. The set-aside involves 16 projects containing 300 units of new construction and 1400 units of substantial rehabilitation.

FY 1978:
The fiscal crisis continues.

HDC completes a $300 million mortgage refinancing plan, started the previous year, which will ultimately put $240 million in the City's coffers.

The rehabilitation of Kew Gardens Hills is completed.

The State legislature increases HDC's bonding authority to $950 million.

HDC seeks and obtains State legislation that allows HDC to make loans directly to developers of new construction projects where the mortgage is either insured or co-insured by the Federal government.

FY 1979:
Since inception, HDC has financed the construction or rehabilitation of over 8,000 units of housing (including building eight new multi-family projects and rehabilitating Kew Gardens Hills).

In October of 1979, HDC issues $49,620,000 in multi-family mortgage revenue bonds, providing funds for the rehabilitation of eight existing projects containing 1,024 units (to be occupied by tenants qualifying for the Section 8 Housing Assistance Payments program).