Archive for Private Activity Bond Financing
New Report: Pump Up the Volume
PUMP UP THE VOLUME: Recommendations to Improve the Allocation of Private Activity Bonds to Better Support Housing in New York State
Over 49,000 units of affordable housing have been created in New York City using tax-exempt private activity bonds (PABs) in the past nine years, and this resource will continue to be an important component for Mayor De Blasio’s Housing Plan to be a success.
However, while information on other City, State and Federal housing resources is readily available, there has been limited publicly available information on the allocation, demand and use of PABs in New York State.
The …Read more
80/20 program restructuring
In January 2014 the State Housing Finance Agency (HFA) announced a significant change in its 80/20 program, which offers developers low-cost financing for market-rate projects where 20% of the units are set aside as affordable housing.
Until recently, 80/20 housing developments could benefit from tax-exempt private activity bond financing for the full development costs as long as they set aside 20% of the units for households earning up to 50% of AMI. Under the new policy, HFA will only issue bonds to provide low-cost financing for 20% of the development costs. In other words, low-cost financing will only be available …Read more