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2010 LIHTC Development that Best Demonstrates Financial Innovation



Mixed-Use Financing Project

Developer: New York City Housing Authority
Location: New York, N.Y.

Mixed-Use Financing Project 2The New York City Housing Authority executed a unique, highly structured transaction in March 2010 that was meant to generate funding for the renovation of as many city and state projects in its portfolio as possible; and, most importantly, to secure ongoing operating subsidies from the federal government in the form of new annual contribution contracts. Under a labyrinthine deal, NYCHA will receive about $230 million for rehabilitating 21 developments that have received no federal subsidies for the past seven years.

Transaction Team: The New York City Housing Authority, NYC Department of Housing Preservations, NYC Housing Development Corporation, CSG Advisors, Ballard Spahr, Hawkins Delafield & Wood, Citigroup, Jones Day, Nixon Peabody, Citigroup, Sidley Austin Brown & Wood, JP Morgan Securities, Goldman Sachs and Orrick Herrington

Honorable Mention

Compass Veterans Center - Renton

Developer: Shelter Resources, Inc., Compass Housing Alliance
Location: Renton, Wash.

Compass Veterans Center – Renton 2Compass Veterans Center –Renton converted LIHTCs to 1601 Treasury Exchange funds, one of the first 1601 ARRA Exchange project to close in the State of Washington. Furthermore, the project was able to keep in place its hard bank permanent financing commitments at the original favorable terms of 4.875 percent with a fully amortized 40-year term. The project also received the largest VA Capitol Grant award in the nation in 2008. VA Capital Grant financing inherently conflicts with LIHTC financing with its requisite LP or LLC ownership structure — VA Capital Grant funds cannot specifically benefit “for profit” entities. Working with National Equity Fund, the project was able to overcome these impediments and became the first in the nation to successfully combine LIHTC financing with VA Capital Grant Financing.

Development Team: Compass Housing Alliance, Shelter Resources, Baylis Architects, Synergy Construction, Veterans Administration, King County Community Development, CTED Washington State Housing Trust Fund, Federal Home Loan Bank, Washington Community Reinvestment Association and NW Lutheran Synod.

Return to 2010 Developments of Distinction Award Recipients

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