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HDC Press Releases
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October
31, 2008
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HDC Announces $160,000,000 For Nations First “Recycled” Bond Issuance
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NEW YORK, NY., October
31, 2008 – The New York
City Housing Development
Corporation (HDC) today
announced it has
approved the issuance of
its Multi-Family Housing
Revenue Bonds in an
amount not to exceed
$160,000,000. Interest
on the 2008 Series I
Bonds will be exempt
from Federal, state and
local income tax.
The HDC bond issuance
will be the first
“recycled” bond issuance
in the nation since
H.R.3221, the Housing
and Economic Recovery
Act of 2008 (“HERA”),
was signed into law in
July 2008. This new act
allows for the refunding
of tax-exempt
multi-family housing
bonds and forwarding
such refunding income
for the financing of
additional projects
without having to use
new private activity
bond volume cap. In
order to make the
recycling authorization
of HERA possible, HDC
must issue refunding
bonds before redeeming
bonds from prepayment
proceeds. HDC has been
currently pooling
prepayment proceeds from
approximately 15
projects in an amount
expected to be about
$120,000,000 and will
cause the redemption of
the related bonds
shortly after the
delivery of the 2008
Bonds.
The 2008 Series I Bonds
will be issued as
variable-rate
Convertible Option Bonds
(“COB”) but will be at a
fixed term rate not
expected to exceed 5.50%
until May 13, 2009,
unless redeemed earlier.
The bond issuance is
expected to provide for
the first phase of
construction and
permanent financing of
new construction for
several developments,
which will reserve a
minimum of 20% of the
units for people earning
no more than 50% of the
AMI, or 25% of the units
for people earning no
more than 60% of the
AMI.
The New York City
Housing Development
Corporation (“HDC”)
provides a variety of
financing programs for
the creation and
preservation of
multi-family affordable
housing throughout the
five boroughs of New
York City. HDC is
implementing Mayor
Bloomberg’s New Housing
Marketplace Plan to
build and preserve
165,000 units of
affordable housing over
ten years. The New
Housing Marketplace Plan
is the largest municipal
affordable housing
effort in the nation’s
history. HDC’s programs
are designed to meet the
wide-range of affordable
housing needs of the
City's economically
diverse population.
Contacts:
Christina Sanchez (HDC)
(212) 227-2644
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