Forrest Pointe, located near Albany in Rensselaer County, is a 104 unit garden style apartment complex with a clubhouse and a fitness center that was financed under HFA's Taxable Mortgage Initiative. All of its apartments are affordable to families with household incomes at or below 150% of the area median income.
The Taxable Mortgage Initiative or 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, HFA originates a mortgage and note 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 Agency. 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 SONYMA Mortgage Insurance Fund provides permanent mortgage insurance to TMI participating lenders.
The TMI is designed to provide affordable housing opportunities to persons of low, moderate and middle income. Therefore, income is restricted to 60% of Area Median Income (AMI) on projects receiving a 9% Low Income Housing Tax Credit (LIHTC) allocation. For TMI financings that do not receive a LIHTC allocation the tenant income is restricted to 110%-150% of AMI for moderate and middle income projects. (Moderate income transactions are restricted to 110% of AMI in the following counties: Westchester, Rockland, Nassau and Suffolk.) Maximum rent restrictions associated with income limits apply.
Subsidy financing, which may take the form of a subordinate loan or grant, may be available from federal, state and local sources
Applications for financing under the Taxable Mortgage Initiative Program are accepted on a continuous basis. Click here for application forms.
Last updated: 11/14/2008 6:13:36 PM