City approves $70m finance package for housing plan

Real Estate Weekly, June 9, 2004

New York City Housing Development Corporation last week approved the use of $71.8 million of tax-exempt and taxable bond financing as well as $26.68 million of the Corporation's reserves for the for the construction of 724 units of low- and middle-income housing in five developments.

The developments to be located in the Bronx and Manhattan will reserve 123 of the units for formerly homeless tenants.

Four of the developments that received approval will be financed through HDC's Low-Income Affordable Marketplace Program. This program provides financing for the creation of apartments made affordable to individuals and households making no more than 60% of Area Median Income or $37,680 for a family of four.

Loans are made possible to the developers through a combination of tax-exempt bonds for construction and permanent financing as well as monies through HDC's corporate reserves to make 1% second mortgage loans. The four developments will be constructed in the Bronx and will create 601 apartments with 123 reserved for formerly homeless tenants. In total, the Members approved the sale of $54.3 million in tax exempt bonds and the use of $22.44 million of the Corporations reserves for these developments.

* 962 Aldus St., Bronx, NY--An 8-story, 164-unit building with 41 apartments reserved for formerly homeless tenants.

* 941 Hoe Ave., Bronx--An 8-story, 136-unit building with 41 apartments reserved for formerly homeless tenants

* 415 East 157th St. and 404 East 158th St.--Two 9-story buildings containing 165 units.

* 1011 Washington Ave. at East 165th St.--An 8-story, 136-unit building containing 41 units for homeless tenants.

HDC's Members approved the use of $17.5 million of taxable bonds and $4.2 million of corporate reserves for the Corporation's second development to be financed through its new mixed-income program.