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. New York City Housing Development Corporation (HDC) and New York State Housing Finance Agency (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.