DCHFA Issues Bond Funds to Jumpstart Projects
Approximately $193 million awarded to the District of Columbia Housing Finance Agency (DCHFA) through the Obama Administration’s New Issue Bond Program (NIBP) became available for use by the DCHFA for its intended projects. The proceeds are the result of the taxable revenue bonds issued by the DCHFA on December 30, 2009. The NIBP, a recently implemented initiative for state and local housing finance agencies (HFAs) and funded through the Housing and Economic Recovery Act of 2008 (HERA), was designed as an additional tool to help stabilize the U.S. housing market through the provision of market liquidity to the HFAs.
Of the $193 million awarded to the DCHFA, the agency has allocated $168 to advance its Multifamily Program and $25 million to replenish its single-family mortgage program. Like many HFAs around the country, in most of 2009 the agency was unable to issue new bonds at a competitive rate in the then-existing capital market structure.
While the DCHFA’s current multifamily pipeline includes eight development projects totaling $123 million already earmarked for NIBP bond proceeds, the agency also has over $40 million available to consider other projects yet to be identified. All projects must be funded before December 31, 2010.