Directory of New York City Affordable Housing Programs

Program (?) Liberty Bond Program
Program Description

The Liberty Bond Program consisted of a finite amount of tax-exempt private activity bonds, authorized by the federal government, that were implemented in Lower Manhattan through a collaborative effort between New York City and New York State. In July 2002, the federal government authorized $1.6 billion in tax-exempt financing for multi-family rental projects within the Liberty Zone area, located south of Canal Street, East Broadway, and Grand Street. Eligible projects included new construction, conversion of commercial facilities, and substantial renovations. HDC and HFA split responsibility for issuing the bonds-each agency received $800 million to distribute for residential developments. Both agencies required developers to contribute to the creation of affordable housing units as part of participation in the program, though the requirements differed depending on which agency oversaw the project. HDC required developers who received Liberty Bond financing to pay a three-percent fee, which was then applied to the development of affordable housing elsewhere in New York City. HFA required that five percent of a project’s units be set aside for middle-income housing in order to qualify for the tax-exempt financing.

Benefit Classification (?)  
Supply or Demand Supply
One-Time or Ongoing One-Time
Benefit Type (?) Financing
Government Agency (?) NYS Department of Homes and Community Renewal
Program Information (?)  
Scale Medium Scale (between 1,000 and 4,999 units produced)
Timeframe 2002-2010
Developer/Owners (?) For-Profit, Non-Profit
Property Information (?)  
Property Occupancy Vacant
Property Type Land
Building Type Multi-family
Construction Type Rehabilitation, New Construction
Occupant Tenure (?) Rental
Occupant Income Restrictions (?) No Restrictions
Other Targeting Information (?) Geographic Restrictions
More Information NYC EDC

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