The 501(c) 3 Bond Financing Program
Not-for-profit organizations play an important role in providing affordable housing in New York State. HFA's 501(c)(3) Bond Financing Program makes the proceeds of 501(c)(3) tax-exempt bonds available to such organizations for the rehabilitation and preservation of existing affordable multifamily rental housing projects, including projects serving populations with special needs. The 501(c)(3) program also provides financing for the new construction of projects serving those same populations. The special needs category includes senior rental housing, senior assisted living facilities, housing for the homeless and for the handicapped.
Eligible borrowers are those organizations that meet the requirements of Section 501(c)(3) of the Code. Such organizations are both organized and operated exclusively for charitable purposes which include relief of the poor and distressed, combating community deterioration, lessening the burdens of government, elimination of discrimination and prejudice, lessening neighborhood tensions and the relief of the distress of the elderly or physically handicapped. A determination letter from the Internal Revenue Service regarding a borrower's 501(c)(3) status must be provided for review and approval by HFA.
In considering financing requests HFA will rely on requirements of the Federal Tax Code as well as its own mandate to maximize benefits of its financing activities for the creation and preservation of affordable housing opportunities.
The 501(c)(3) Bond Financing Program may be used in conjunction with other programs to preserve affordable housing including, but not limited to, the U.S. Department of Housing and Urban Development’s Section 236 Interest Reduction Payments Program, Section 8 Mark to Market Program or projects developed under the Section 202 Program. Eligible properties include those acquired from a for-profit owner by a 501 (c)(3) organization or those acquired from a 501(c)(3) organization by another 501(c)(3) organization. Properties currently owned by a 501(c)(3) organization and financed by an entity other than HFA may be eligible for financing or refinancing provided that the transaction includes a rehabilitation component. Properties currently owned by a 501(c)(3) organization and financed by HFA may be refinanced. The latter transaction does not require a rehabilitation component.
|
Funding Category: |
Construction and Permanent Mortgage Loan Financing for the rehabilitation and preservation of existing or newly constructed affordable multifamily rental housing projects by 501(c) 3 organizations. |
|
Target Population: |
Low, moderate and middle-income persons, including populations with special needs. |
|
Funding Available: |
Minimum loan amount of $1,000,000. Loans greater than $20,000,000 will be considered on a case-by- case basis. |
|
Application Information: |
|
|
Contact: |
For further information and an application package please contact: Ronald W. Schulman, Vice President, Director of Development, tel. (212) 688-4000, ext.386; fax (212) 872-0386, email: rschulman@nyhomes.org; or Gary J. Carriero, Assistant Vice President, Development, tel. (212) 688-4000, ext.387; fax (212) 872-0387; email: garyc@nyhomes.org, New York State Housing Finance Agency, 641 Lexington Avenue, New York, New York 10022 |
|
Links to More Info: |
HFA homepage |
|
Administering Agency: |