HDC BOARD APPROVES FINANCING FOR TWO MAJOR PROJECTS

New York, NY, February 27, 2008

NEW YORK, N.Y., February 27th, 2008 – Today, The Members of the New York City Housing Development Corporation (HDC) approved $680 million in Liberty Bond and taxable bonds for the development and construction of Beekman Tower, a major new mixed-use residential building in Lower Manhattan, as well as $80 million in tax-exempt financing that will preserve 1,527 affordable apartments in Brooklyn.

The Liberty Bond issuance represents the last of HDC’s allocation. HDC’s board approved the remaining $190 million Liberty Bonds and $476.1 million in taxable bonds to finance 904 apartments in Lower Manhattan. The New York State Housing Finance Agency (HFA) also contributed $13.9 million from its Liberty Bond allocation to make this exciting development possible. At 76-stories, the Frank Gehry-designed tower is HDC’s largest financing to date and is destined to become a landmark. Beekman Tower will stand as a testament to Lower Manhattan’s ability to transform itself into a vibrant live-work neighborhood.

The site is located at 60 Beekman Street and 8 Spruce Street in Lower Manhattan. The Liberty and taxable bond proceeds will be utilized by FC Beekman Associates to construct 904 residential units and approximately 1,500 square feet of retail space. Beekman Tower will also include a separately financed ambulatory care center to be operated by the New York Downtown Hospital; a below grade 190-space parking garage; and a pre-K through 8th grade Public School to be owned and operated by the New York City Department of Education.

Not only did the residential Liberty Bond program help transform the financial district into a 24/7 community, it also generated funds for affordable housing. HDC was able to collect approximately $12 million in fees associated with the issuance of Liberty Bonds. These fees assisted with the financing of low-income developments throughout New York City. To date, HDC has constructed 467 affordable housing units using Liberty Bond fees.

HDC also approved $80 million in tax-exempt private activity bonds for the moderate rehabilitation of Linden Plaza, a Mitchell-Lama development in Brooklyn. Linden Plaza located at 675 Lincoln Avenue in the East New York, contains 1,527 low and moderate income apartments. This development consists of five mid-rise towers and six townhouse complexes; as well as courtyards, plazas, retail space, and parking garages. The refinancing will allow major renovations to take place. About 70% of the Project’s units will be reserved for low-income families earning less than 60% of the New York City area median income (AMI). The remaining units are currently rented to tenants with incomes that exceed 60% of AMI, but will be re-rented at incomes no greater than 80% of AMI.

HDC’s President, Marc Jahr, stated that, “The Linden Plaza refinancing will preserve over 1,500 invaluable affordable Mitchell-Lama apartments and contribute to the continued stability of the surrounding area.”