The New York City Housing Development Corp. last week approved $547.5 million of tax-exempt bonds. That includes the rollout of $130 million of escrowed proceeds from bonds issued under the federal new-issue bond program approved by the board.
Proceeds will be used to finance new construction, acquisitions and rehabilitation of 11 projects. They will also fund the preservation of a 360-unit housing development in the state’s Mitchell-Lama affordable housing program.
Under the NIBP program created last year, the Treasury Department agreed to purchase securities issued by Freddie Mac and Fannie Mae backed with bonds issued through housing finance agencies.
The bonds were sold last year as short-term securities to meet a deadline and the proceeds were escrowed. Issuers have until the end of 2011 to refinance the bonds as long-term debt. The HDC sold $500 million of the bonds in 2009.
