The New York City Housing Development Corp. hopes to market $79.4 million of tax-exempt fixed-rate bonds this week to finance the construction of affordable housing and refinance outstanding debt. But given turbulent market conditions, the bonds may not be fixed rate - and with volume cap scarce, the amount offered may be only around $27 million.

The HDC has used up its allocation of private-activity bond volume cap and has applied for $52 million more, but as of last week that request had not been approved by the state's budget division. Last month, the agency received an additional $93.6 million allocation of private-activity bond volume cap that was made available under the federal housing bill that passed in July, but it needs more to get several deals done by the end of the year.

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