NEW YORK STATE HOUSING FINANCE AGENCY’S
80/20 NEW CONSTRUCTION HOUSING PROGRAM
ELIGIBILE PROJECTS New construction of multifamily rental housing properties.
Generally, HFA expects that applications for project loans
under this program will be for at least $50,000,000.
BORROWING ENTITIES Borrowers must be created as single purpose entities which
include general or limited partnerships, trusts, corporations,
limited liability companies. All principals must submit
information for and successfully complete a background
review process conducted by HFA.
Transfers of the Project and/or interests in the Borrower will
be limited to entities approved by HFA in its sole discretion.
HFA reserves the right to impose certain fees with respect to
Mortgage loans may be financed with HFA tax-exempt
Private Activity Bonds and/or taxable bonds. Bonds may be
issued in either a fixed or variable rate mode.
All financings must provide credit enhancement acceptable
to HFA during the construction and permanent terms of the
bond financed loan sufficient to achieve an investment grade
rating on HFA’s bonds. Acceptable credit enhancement
must have credit ratings sufficient to allow fixed rate bonds
to have a long term rating of at least “A” and variable rate
bonds to have a short term rating in the highest short term
rating category from an acceptable national rating agency.
Acceptable credit enhancement may include, but is not
limited to: letters of credit from an institution with appropriate
credit rating, or Fannie Mae or Freddie Mac credit
Borrowers must meet all credit enhancer requirements
regarding loan terms, guarantees, debt coverage and
income to expense ratios. Additionally, HFA may require
where appropriate environmental guaranties, completion
costs guaranties and a latent defects guaranty.
Projects for which at least 50% of the costs of development