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A STATE HOUSING finance program is being cut back, which could jeopardize a number of affordable housing developments in New York City.
This year, only two or three of the approximately 30 projects seeking state tax-exempt financing under the 80/20 Program - buildings in which 80% of the apartments are rented at the market rate and 20% are leased to low-income households - are likely to receive it. Potentially worse is that no other projects may get funded in 2009 and 2010.
The New York State Housing Finance Agency, which is sues bonds for the 80/20 Program, says there will be only $689 million available over the next three year for new proj efts. All of that money will be allocated for this year's projects. Last year, the HFA issued $722.1 million worth of bonds for 80/20 projects.
The 80/20 Program is an important part of the city's affordable housing program because it brings down the cost of financing for developers. HFA financing is typically 1.5 to 2 percentage points below market rates. Several of the pending projects depending on...