HDC BOARD APPROVES BOND AND SUBSIDY FINANCING FOR 13 AFFORDABLE DEVELOPMENTS ACROSS ALL FIVE BOROUGHS
HDC Board authorizes Financing for the New Construction and Preservation of 2,527 Units of Affordable Housing
June 3, 2016 – Following approval by its Board of Directors at a meeting on June 1, the New York City Housing Development Corporation (HDC) plans to issue more than $455 million in bonds and provide more than $115 million in additional financing to fund the new construction and preservation of 2,527 units of affordable housing in 13- developments across the five boroughs. This marks the latest issuance under the Corporation’s Sustainable Neighborhoods Bonds, which HDC successfully launched last year to align its missions of affordable housing and community development with the growing market interest in socially beneficial investments.
“These developments reflect the Mayor’s vision of reaching a broader range of New Yorkers struggling with rent burden; creating more mixed-income housing; meeting the special housing needs of our most vulnerable populations; and introducing the commercial, community, and retail space that – together with affordable housing – are essential to fostering thriving and diverse neighborhoods,” said HDC President Gary Rodney, “I thank the HDC Board, staff, and all of our many partners in the public and private sectors for joining us in taking these latest steps toward a more affordable and equitable New York.”
“The financing innovation and strategic vision of Gary and his staff continue HDC’s legacy as one of the nation’s premier housing finance agencies, and one of the city’s most powerful allies in confronting the affordable housing crisis we face,” said Vicki Been, HDC Board Chair and Commissioner of the New York City Department of Housing Preservation and Development (HPD). “I thank my fellow Board Members and the entire HDC team for their tireless efforts on behalf of all New Yorkers, the many private and non-profit developers who partnered with us on these projects, and our colleagues in good government at the city, state, and federal levels whose collaboration made them possible.”
The 13 developments will further advance Housing New York, Mayor de Blasio’s ambitious plan to create and preserve 200,000 affordable homes over ten years. Of note, Jamaica Estates in Queens with Artimus Development will expand an innovative program with The U.S. Treasury Department’s Federal Financing Bank (FFB) as it is the first new construction project in the nation to participate. The FFB program provides low-interest financing to projects that are being funded by state and local agencies through a risk-sharing structure with HUD. HDC had previously piloted this program for preservation projects with great success.
The new construction projects also include Melrose Commons Supportive Housing in The Bronx, a collaboration with HPD, HUD, NYCHA, and non-profit partner The Bridge, Inc. that will provide affordable housing and critical services to formerly homeless veterans. The latest preservation efforts include five aging Section 8 projects comprising 20 buildings in Harlem that will be reorganized into one new development (“Tahl Propp Section 8 Preservation Portfolio”) to ensure their physical rehabilitation and financial stability.
About the New York City Housing Development Corporation (HDC):
HDC is the nation's largest municipal Housing Finance Agency and is charged with helping to finance the creation or preservation of affordable housing under Mayor Bill de Blasio's Housing New York plan. Since 2003, HDC has financed more than 140,000 housing units using over $15 billion in bonds, and provided in excess of $1.9 billion in subsidy from corporate reserves. HDC ranks among the nation's top issuers of mortgage revenue bonds for affordable multi-family housing on Thomson Reuter's annual list of multi-family bond issuers. In each of the last four consecutive years, HDC's annual bond issuance has surpassed $1 billion. For additional information, visit: www.nychdc.com.