HDC Gets Volume Cap Boost

The New York City Housing Development Corp. received an additional private-activity bond volume cap allocation of $57.5 million from the state last week to allow it to issue debt for affordable housing developments this month.

The HDC plans to ask the state for another allocation under the volume cap by the end of the year, spokesman Aaron Eckerle said. Volume under the cap is allocated by the state by calendar year and unused amounts from the previous year can be carried forward into the next.

The corporation had exhausted its volume cap allocation in the summer but got a boost from the state in July with an additional allocation of $100 million and a $1.5 billion increase of its debt limit, raising it to $7.5 billion.

The agency has sold $422.1 million of bonds this year, according to Thomson Financial.

Scarcity of allocation under the volume cap, due in part to the city’s booming housing market, caused the HDC’s annual volume to drop dramatically this year compared to the previous four years, over which it issued a total of $5.11 billion of debt.

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