Tax-exempt Private Activity Bonds and 4% as-of-right tax credits play a critical role in creating and preserving affordable housing. They help to build thriving communities across New York State by reducing costs so HCR can do more for New Yorkers.
Since 2011, HCR has invested over $10.9 billion in low-cost tax exempt bonds and leveraged another $13 billion in private capital to create and preserve more than 33,000 affordable multifamily units and finance affordable mortgages for more than 10,000 homeowners. New York State's FY 2018 budget has $2.5 billion earmarked for affordable housing programs. We are on our way to funding Governor Cuomo's $20 billion, 100,000 unit five-year plan that reflects his inborn passion for creating affordable opportunities for those experiencing housing insecurity or outright homelessness.
New York State also uses Private Activity Bonds to subsidize competitive SONYMA program loans for first-time low- and moderate-income buyers with down payment assistance loans, low-interest mortgages for veterans, and new programs that help homebuyers purchase and renovate zombie homes to fight blight across the state.
Without the ability to draw on tax-exempt bonds as a source of capital to finance affordable housing, the ability of municipalities and the State to drive growth and renewal would be severely impacted.