The 80/20 Program

The 80/20 Program is the practical application of the Federal Tax Code to projects that are financed with the proceeds of federally tax-exempt private activity bonds. The program derives its name from the Tax Code requirement that no more than 80% of the units in a project financed with tax-exempt private activity bonds are to be occupied by individuals or families at market-rate rents, while the other 20% must be rented to low-income households. The Tax Code provides specific definitions of low income and also provides some options for the market/low income proportions of projects. 


HFA’s use of the proceeds of federally tax-exempt private activity bonds to make mortgage loans enables us to offer favorable mortgage rates. This form of bond financing also enables developers to 

The maximum rent on all units that are set aside for low income households cannot exceed 30% of the applicable income limits. The 80/20 Program is one of the most popular financing programs for projects located in New York City and other high cost areas in New York State. Where economically possible, HFA also uses federally tax-exempt private activity bonds to provide mortgages for the development of projects that are 100% affordable.



Funding Category:

Financing program that requires multifamily housing projects financed with tax-exempt bonds to have a proportion of 80% market-rate rents and 20% rents for low-income households. 

Target Population:

Low-income households

Funding Available:

Loans for permanent financing funded with the proceeds of bonds issued by HFA may not be less than $1,000,000 or greater than $10,000,000.

Application Information:

Application Process for Developers


For further information and an application package please contact: Ronald W. Schulman, Vice President, Director of Development, New York State Housing Finance Agency, 641 Lexington Avenue
New York, New York 10022; tel. (212) 688-4000, Ext. 386; fax: (212) 872-0386; email:

Links to More Info:

HFA homepage

HFA Multifamily Financing Programs

The 80/20 Program website

Administering Agency:

New York State Housing Finance Agency (HFA)


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