Taxable 80/20 Program
New York City Housing Development Corporation (“HDC”) may issue taxable bonds to make
construction and/or permanent mortgage loans for projects where at least 20% of the units are
affordable to low and moderate-income households who earn up to 80% or 100% of the New
York City area median income. The remaining units may be set at market levels and rented to
households of any income. Most “80/20” developments constructed since 1984 have been
primarily financed with the proceeds of tax-exempt bonds. This program makes the
development of “80/20” housing feasible without the utilization of tax-exempt bonds.
To facilitate such developments, the Corporation would offer subsidies in the form of a second
mortgage of up to $85,000 per affordable unit in “80/20” developments financed with taxable
bonds issued by HDC. Subsidy funds would be advanced at a 1% interest rate and would be
repayable over not more than 30 years from the project’s completion. The Borrower will be
required to enter into an HDC Regulatory Agreement.
New construction, substantial rehabilitation and conversions of non-residential buildings on an
as-of-right-basis for developments containing a minimum of one hundred (100) residential units.
Moderate Income Units – a minimum of 20% of the units must be affordable to those earning at
or below 80 % or 100% AMI. Subsidy levels (see Second Mortgage section) differ based
on the rent levels of the Middle Income units.
2008 maximum rent levels¹ are outlined below:
Unit Type 80% AMI 100% AMI
Studio $873 $1,104
1 BR $1,099
2 BR $1,323
3 BR $1,529 $1,928
¹Rent levels are calculated as gross rents less an electricity allowance
Moderate Income Units - Tenants may pay up to 35% of their income toward net rents. Incomes
will be adjusted fo