New York City Housing Development Corporation Approves $300 Million In Bond Financing And Corporate Funds For 11 Affordable Housing Transactions Total Funding Includes $102 Million in New Issue Volume Cap Allocated by The State of New York 

July 5, 2012 - New York City Housing Development Corporation (HDC) President Marc Jahr announced today the issuance of nearly $250 million in housing bonds — including an allocation of $102 million from the State of New York — and the commitment of up to $50 million in HDC corporate funds to provide financing for three new developments with 482 rent-restricted units and the preservation and renovation of eight affordable developments with 2,174 units in The Bronx, Brooklyn and Manhattan.

The financing, which includes an allocation of $148 million in bonding authority from the City’s Industrial Development Agency (IDA), is undertaken in conjunction with the City’s Department of Housing Preservation and Development (HPD), and other private and not-for-profit partners, supports Mayor Michael R. Bloomberg’s New Housing Marketplace Plan (NHMP), a multi-billion dollar initiative to finance the creation or preservation of 165,000 units of affordable housing by the end of the 2014 fiscal year. To date, the plan is responsible for financing the creation or preservation of more than 131,360 units across the five boroughs, with HDC providing more than $6.6 billion in bonds and cash to assist these transactions.  

 “Key to meeting the goals of the Mayor’s New Housing Marketplace Plan is HDC’s ability to issue tax-exempt housing revenue bonds,” said HDC President Jahr. “Proceeds from the sale of these bonds to investors are then used by HDC to finance affordable housing throughout New York City’s five boroughs.  We couldn’t do that without the great support of the State of New York.  Their allocation of more than $102 million of bonds to HDC, in tandem with the IDA’s $148 million bond allocation will allow us to create and preserve more than 2,650 units of affordable housing, strengthen the neighborhoods surrounding these developments, and generate jobs, while stimulating the local economy.”  

New York State Homes and Community Renewal (HCR) plays a central role, along with the State’s Division of Budget and the Empire State Development Corporation, in the allocation of the State’s annual allotment of federally issued bond Volume Cap. The $102 million bond volume cap allocation via HCR will directly fund the new construction and preservation of four developments with 1,051 affordable units under the NHMP.  

“Under Governor Andrew Cuomo, New York State is proud to provide the leadership that will allow New York City to finance and build thousands more units of affordable housing,” said HCR Commissioner/CEO Darryl C. Towns.   “Working with our partners at HDC, this financing is a win-win: it will both put New Yorkers to work and put needed roofs over people’s heads.” 

In total, tax-exempt bonds in the amount of $248.8 million will be issued to provide financing for the new construction and rehabilitation of 11 developments located in the Bronx, Brooklyn and Manhattan. These financings will leverage total development costs of $439.1 million and create 1,912 construction jobs.  

“Thanks to the timely allocation from HCR, HPD and HDC were able to close some large, complex transactions that would otherwise have been delayed for many months,” said HPD Commissioner and HDC Board Chair Mathew M. Wambua. “For those in need of affordable housing or who are waiting for their homes to be renovated any delay is too long. We have great partners in this effort and together we are making the dream of a secure, safe and healthy home a reality for a great many New Yorkers.”

Developments to be financed with the Corporation’s 2012 Series D bonds include:  
• LMLD City Wide Preservation: rehabilitation of a 33-building portfolio- with properties in Brooklyn, Upper Manhattan and The Bronx; 662-units; affordable to tenants earning no more 60% of the Area Median Income (AMI); Developer: L+M Development Partners; HDC Investment: $41.5 million in tax-exempt bonds for construction financing;  Total development cost: $81.2 million 

• St. Lucy’s Apartments: 313 East 103rd Street and 330 East 104th Street; rehabilitation of 100 units for low-income tenants who earn between 60% to 100% AMI; Developer: East 103rd Associates, LLC; HDC Investment: $3 million for permanent financing; Total development cost: $17 million 

 • Hoewood Point: 1023 Longwood Avenue; 932-940 Hoe Avenue in the Bronx; rehabilitation of 80 units for tenants earning up to 60% AMI; Developer: joint venture between Lemle & Wolff and South Bronx Community Management (SBCM); HDC Investment: $2.5 million for permanent financing; Total development cost: $18.8 million 

• MBD Silva Taylor: A cluster of 19 buildings located in the Bronx; rehabilitation of 361 units affordable to tenants earning no more 60% AMI; Developer: MBD Community Housing Corporation; HDC Investment: $32 million in tax-exempt bonds for construction financing; Total development cost: $62 million 

• Lebanon West Farms: 1160 Lebanon Street, 1175 East Tremont Avenue, 1172 East Tremont Avenue; new construction of a three-building complex with 7,444-square-feet of retail space; 141 units affordable to tenants earning no more 60% AMI; Developer: Phipps Houses, Inc.; HDC Investment: $23.8 million in tax-exempt bonds for construction financing; Total development cost: $47.2 million 

• Harlem River Point South: 200 East 131st Street; new construction of a multi-family building; 140 units affordable to tenants earning no more 60% AMI; Developer: Artimus Construction and L+M Development Partners; HDC Investment: $20.6 million in tax-exempt bonds for construction financing; Total development cost: $ 40.7 million 

• Morris Court: 247, 253, 261, 267 East 142nd Street; 400 Rider Avenue; 262 East 143rd Street; new construction of a multi-family building; 201 units affordable to tenants earning between 58% AMI and 80% AMI; Developer: Azimuth Development Group and Best Development Group; HDC Investment: $34.7 million in tax-exempt bonds for construction financing; Total development cost: $69.7 million 

• PRC Westchester: 975 Simpson Street, 985 Simpson Street, 995 Simpson Street, 1000 Simpson Street, 1083 Longfellow Avenue, 1075 Longfellow Avenue, 1240 Westchester Avenue and 1076 Faile Street; rehabilitation of 409 units affordable to tenants earning no more 60% AMI; Developer: Property Resource Corporation; HDC Investment: $35.5 million in tax-exempt bonds for construction financing; Total development cost: $ 71 million 

• Southern Boulevard: 772-774 and 784 Fox Street, 751-753, 766, 775 Fox Street and 737 Southern Boulevard, 655-663 and 712 Fox Street; rehabilitation of 370 units affordable to tenants earning up to 60% AMI; Developer: Omni New York LLC; HDC Investment: $36.9 million in permanent financing; Total development cost: $ 60.9 million 

• Crotona V: 1712 and 1715 Longfellow Avenue; rehabilitation of 87 units affordable to tenants earning below to 80% AMI; Developer: 1712 + 1715 HDFC: HDC Investment: $5.8 million in permanent financing; Total development cost: $7.8 million 

• B&L Grand Concourse: 1290 and 1326 Grand Concourse; rehabilitation of 105 units affordable to tenants earning up to 60% AMI; Developer: B&L Concourse Housing Associates L.P.;HDC Investment: $1.7 million in permanent financing; Total development cost: $ 9.1 million 

The New York City Housing Development Corporation is rated AA by S&P and Aa2 by Moody’s.  Both rating agencies recently reaffirmed the Corporation’s AA rating and stable outlook status due to its strong financial performance, low-risk asset base and effective asset management. 

About the NYC Housing Development Corporation (HDC):HDC provides financing that builds and strengthens neighborhoods. Since 2000, the corporation has issued roughly 10% of all the multifamily housing revenue bonds in the U.S. and since 2003, when Mayor Bloomberg’s New Housing Marketplace Plan was launched, HDC has raised more than $6.7 billion in financing for affordable housing developments, including in excess of $1 billion in subsidy from corporate reserves. In Affordable Housing Finance magazine’s annual listing of the nation’s top ten funders of multifamily housing, HDC is the only municipal entity included on the list, and consistently bests many of the largest commercial banks and most statewide Housing Finance Agencies (HFA). This past year, HDC was the fourth largest affordable housing lender in the U.S. after Citi, Wells Fargo and Bank of America, beating out JPMorgan Chase and Capital One. To date, under the Mayor’s plan, HDC has financed the creation or preservation of more than 60,000 affordable units in multifamily buildings that also include 1.7 million square feet of commercial space. For additional information, visit: www.nychdc.com 

About Mayor Michael R. Bloomberg’s New Housing Marketplace Plan: New York City’s affordable housing program to build or preserve 165,000 units of housing — enough to house half a million New Yorkers — is the most ambitious and productive in the nation—creating housing as well as jobs for New Yorkers. Since the plan’s inception, HPD and HDC have financed the creation or preservation of more than 131,360 affordable homes. To read more about the NHMP, please visit: http://www.nyc.gov/html/hpd/html/about/plan.html 

About New York State Homes and Community Renewal (HCR):New York State Homes and Community Renewal (HCR) consists of all the State's major housing and community renewal agencies, including, The Affordable Housing Corporation, The Division of Housing and Community Renewal, Housing Finance Agency, State of New York Mortgage Agency, Housing Trust Fund Corporation and others.