Professional Documents
Culture Documents
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Developing Affordable
Housing: A Three Part Series
Overview
1. The 411 on Community Development Corporations
New Affordable
Housing
Is Different
Than Old Rent
Stabilized
Subsidies For
New Construction
• NYS Homes and Community Renewal (HCR) - Low Income
Housing Tax Credit (LIHTC), Low Income Housing Trust Fund
(HTF), Housing Finance Agency (HFA) subsidized mortgages
2. Although non profits do not pay taxes they are able to raise initial
funds for development by selling tax credits to banks or private
developers.
Term Sheets in our city are created by HPD and HDC and outline not
only loan requirements but also expected rents
• Loan to Value: A percentage set to determine the maximum mortgage that can
be offered based on the property’s assessed worth
Term Sheet
Rent and Marketing Bands
Different components of
actual HPD Term Sheet
Loan Terms
What is a pro forma?
• Pro forma is a term you will hear often used by developers
when referring to their ability to meet term sheet
requirements.
- HDC first mortgage (taxable bonds, floated during construction with a JP Morgan Chase line of credit, at 7.7 percent 33,690,000 4,370,000
fixed interest rate)
LIHTC equity (Federal at $0.82, state at $0.49; equity investment from Chase) 3,122,165 32,083,651