The New York City Housing Development Corp. plans to get out of the auction-rate securities market completely through a series of redemptions and remarketings that began last month. However, one bond issue presents an as yet unresolved hiccup.
The corporation plans to remarket auction-rate bonds on three HDC-financed projects next week as variable-rate demand obligations. The three projects are: 2 Gold, which has $162 million tax-exempt Liberty bonds and $53.9 million of taxable bonds outstanding; 90 Washington, which has $74.8 million of tax-exempt bonds; and Royal Charter, which is staff and student housing for the New York-Presbyterian Hospital and has $89.2 million of tax-exempt bonds and $6.3 million of taxable bonds. All of these series experienced failed auctions last month. The HDC issues tax-exempt and taxable financing for affordable housing projects in New York City.