The affordable housing industry can breathe a little easier: The New Issue Bond Program (NIBP) is being extended through 2012, the Treasury Department recently announced.
Throughout 2011, there were rumblings that the program would be extended. Many housing finance agencies (HFAs) found themselves with a surplus of unused single-family NIBP money, and the multifamily industry had been pining to put those funds to work. The recent announcement allows HFAs to do just that.
“This will enable worthy affordable projects to be financed that may otherwise have stalled because of sourcing gaps," said Steven Fayne, managing director of Citi Community Capital. “We are delighted that the NIBP will be revitalized by the carryover of the unused single-family allocation to multifamily and the extension of the program to 2012.”
The program provided a huge shot in the arm for the industry, offering rates as low as 1.8 percent and breathing new life into the bond market. With those kinds of rates, NIBP allowed many deals in high-cost areas such as California and New York to pencil out over the last two years.
Read more...NIBP Extended Through 2012 - Affordable Housing Finance - News
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