DCHFA First Agency to Close Multi-Deal Transaction Under NIBP
The D.C. Housing Finance Agency (DCHFA) was the first housing finance agency in the nation to close a multiple deal transaction under the Obama Administration’s New Issue Bond Program (NIBP). DCHFA issued a combination of NIBP bonds and market bonds purchased by private investors in the amounts of $19.5 million and $6.5 million, respectively. The transaction resulted in the funding of three multifamily rental projects for a total development cost of $55.8 million and created or preserved 232 units of affordable housing for District residents.
The NIBP, an initiative for state and local housing finance agencies is implemented through a partnership of the U.S. Treasury Department, Fannie Mae, and Freddie Mac, and funded through the Housing and Economic Recovery Act of 2008 (HERA). In December 2009, the DCHFA was awarded $193 million through the program, of which, the agency allocated $168 million to advance its Multifamily Program and $25 million replenish its Single Family Mortgage Program (the DC Bond Program).
The transactions required multiple layers of strategic financing. The DC Department of Housing and Community Development (DCHA) contributed funds from both its Tax Credit Assistance Program and Housing Production Trust Fund. Additionally, the transactions leveraged equity from LIHTC and rehabilitation tax credit investors in the amount of $8.2 million. DCHA funds along with other grant, loan, and equity dollars completed the projects’ financing.