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Directory of NYC Housing Programs

Taxable Mortgage Initiative (TMI)

The Taxable Mortgage Initiative (TMI) reduces the time, cost, and complexity of taxable, first mortgage debt financing by eliminating the need to issue taxable bonds to finance affordable housing. Instead of issuing bonds, New York State Housing Finance Agency (HFA) originates a mortgage and notes which are assigned to an acceptable construction lender. Upon construction completion and stabilization, the construction lender assigns the loan to a permanent lender acceptable to the HFA. The New York State Common Retirement System and the New York City Employee Retirement System have been the most active TMI permanent lenders to date. The State of New York Mortgage Agency (SONYMA) Mortgage Insurance Fund provides permanent mortgage insurance to participating TMI lenders.

The TMI is designed to provide affordable housing opportunities to persons of low-, moderate-, and middle-income. Therefore, income is restricted to 60 percent of Area Median Income (AMI) on projects receiving a nine percent Low-income Housing Tax Credit allocation (LIHTC). For TMI financings that do not receive a LIHTC allocation, the tenant income is restricted to 110 to 150 percent of AMI for moderate- and middle-income projects. Maximum rent restrictions associated with income limits apply.

Program Information Help Icon

  • Supply/Demand: Supply
  • Category: Land and Financing
  • Scale: Small Scale (between 1 and 999 units)
  • Occupancy tenure: Rental
  • Construction Type: New Construction, Rehabilitation
  • Building Type: Multi-family
  • Developers/Owners: Non-profit, For-profit
  • Income Restrictions: Restrictions Vary

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