50 Years

of Financing Affordable Homes for New Yorkers

2021 Annual Report

Richard Froehlich

Richard M. Froehlich
(1963 – 2021)

First Executive Vice President
& Chief Operating Officer, HDC

In Memory of Richard M. Froehlich

“I believe we live in two Cities. The visible city, and the invisible city. The visible city is the brick and mortar, the glass and steel, the concrete and macadam. The invisible city is the relationships and the intricate financial webs, the true mortar that holds things together. Rich left his indelible imprint throughout our visible and invisible city. Through an elegant calculus, he helped build our neighborhoods; and through a crazy, complex, confounding, loving way he built a crazy, complex, confounding, loving set of relationships, which we have all benefited immensely from. Rich was a quilter, a weaver, a knitter of all these complex filaments and we all, and this city, incalculably benefited from his efforts.

We will all miss Rich dearly.”

Marc Jahr
Former HDC President

Eric Enderlin

Message from HDC President Eric Enderlin

Dear Partners,

I am pleased to present to you HDC’s 2021 Annual Report as we celebrate 50 years of financing affordable homes for New Yorkers.

Since 1971, HDC has been at the forefront of engineering new and innovative financing solutions to tackle the city’s ever-evolving housing crisis, shaping not just the landscape of New York City, but of affordable housing finance nationwide. This year’s report highlights some of the key milestones over the past five decades, from our early investments in Mitchell-Lama housing at the height of the City’s fiscal crisis to our pioneering role in securing and leveraging multi-family bond recycling to the creation of the Housing Impact Bond Resolution to help preserve the quality and affordability of our city’s public housing stock.

More recently, in the wake of the COVID-19 pandemic, we have been confronted with unprecedented social, health, and economic crises. Despite the many obstacles, we took action, along with our many partners to ensure the continued creation of much-needed affordable housing and combat displacement at a time of great instability.

In 2021, we came through on our commitments to serve those New Yorkers in greatest need, creating more housing for our lowest-income families, seniors, and the formerly homeless. Together with the incredible team at the New York City Department of Housing Preservation and Development (HPD) and our dedicated partners in City and State government as well as the entire affordable housing community, we helped to bring the Housing New York plan across the finish line with a record 200,000 affordable homes created or preserved in eight years.

HDC also continued to support our city’s public housing residents through our partnership with the New York City Housing Authority (NYCHA) under Permanent Affordability Commitment Together (PACT). At year-end, we had either closed on financing or designated development teams to rehabilitate 22,450 NYCHA homes — significant progress towards our goal of bringing critical capital improvements, tenant protections and guaranteed affordability to more than 62,000 NYCHA households. This year, we were honored to have our Impact Resolution and PACT preservation efforts recognized by the prestigious National Council of State Housing Agencies’ Awards for Program Excellence.

We were also extremely proud to be recognized as the top multifamily housing bond issuer and among the top 10 overall municipal bond issuers this year, coming in 8th in national rankings. In 2021, HDC contributed over $2.9 billion in bond financing and more than $185 million in subsidy loans — a testament to the creativity and dedication of the entire HDC team who work tirelessly every day to create a more affordable city for New Yorkers.

As we work to address the evolving economic challenges in New York City, it is critical that as an industry we continue to advocate for more resources at the federal, state, and local levels. After years of advocacy, the affordable housing industry is now benefiting from a permanent floor for the 4% housing tax credit that went into effect for affordable housing deals this year. We also celebrated the relaunch of the Federal Financing Bank Risk Sharing program, after the program lapsed in 2018, and are once again reaping the benefits of lower cost financing and conservation of volume cap that come with this valuable tool.

While our achievements in recent years have made a substantial impact on the lives of hundreds of thousands of New Yorkers in need, the demand for affordable housing persists with resounding urgency. More than ever, it’s imperative that we work together to secure the programmatic and financial resources we need from the federal government, and seek new ways to stretch limited resources like private activity bonds and low-income housing tax credits further.

HDC has long served as a trusted financing partner in support of the City’s efforts to foster the development of a more affordable New York. Looking ahead, I am thrilled to be working alongside the dynamic housing leadership of the new Administration, as well as so many thoughtful mission-driven partners, as we re-examine the complex challenges New Yorkers face today and bring about new, more people-centered solutions to address some of our city’s most pressing housing challenges.

On behalf of everyone at HDC, I thank you for your ongoing partnership in our efforts to create more opportunities for New Yorkers through the financing of housing that is affordable and secure and look forward to our continued work towards ensuring a strong and equitable recovery for our city.

Eric Enderlin
HDC President

The 1970s

Early Years

— JUNE 1971 —

HDC Created by NYS Legislature

The New York City Housing Development Corporation (HDC) was formed as a vehicle to improve New York City’s supply of housing for low- and moderate-income households. Created by a state act effective June 17, 1971, HDC was authorized to sell bonds in an amount up to $800 million. The following May of 1972, HDC became fully operational following the passage of New York City Council Local Law No. 34.

— August 1972 —

HDC Issues First Bond Sale

HDC’s early investments were dedicated to supporting the City’s Mitchell-Lama program, which to this day provides affordable rental and cooperative housing to moderate and middle income families.  In 1972, HDC’s first bond sale in principal amount of $133 million led to the closing of three mortgages financing 3,028 units of Mitchell-Lama housing at Washington Plaza Towers, Waterside Plaza, and Ocean Park Apartments.

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of series a bond sales
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HOMES financed

HDC’s First Projects Financed

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— 1975 —

NYC on Brink of Bankruptcy

At the height of a dire fiscal and political crisis, the City of New York was effectively shut out from the credit markets and unable to borrow funds needed to avoid bankruptcy. Nonetheless, HDC’s positioning remained sound and the Corporation was able to continue to support the city’s affordable housing needs despite difficult market conditions.

The 1980s

Time of Crisis and Opportunity

— 1980 —

HDC Markets Bonds to Aid NYC

Despite uncertainties in the bond market, HDC successfully marketed $108,975,000 multi-family mortgage bonds in July of this year to aid New York City as the fiscal crisis continued.

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multi-family mortgage bonds
successfully marketed
— 1981 —

HDC’s 10-Year Anniversary

In its tenth year of operation, HDC issued no bonds due to historically high interest rates…a staggering 16.63%!  This same year, start rates for the construction of new residential homes across the nation plunged to levels not seen since World War II.

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— 1982 —

HDC Issues Largest Insured Multi-
Family Housing Bond in History

Amidst record high interest rates and a deep recession, HDC prevailed with the most productive year of its decade-long history. In 1982, HDC issued over $240 million in bonds and notes to finance the construction and rehabilitation of more than 4,200 homes across 41 developments throughout the city. This included a $173 million tax-exempt bond issuance, the largest issuance for FHA-insured multifamily housing in US history at that time.

illustration of HDC Mortgage revenue bond from 1982
— 1986 —

Congress Passes Tax Reform Act

The federal Tax Reform Act of 1986 significantly hindered multi-family residential development as New York City faced a growing housing crisis. At the same time, the Act created the low income housing tax credit (LIHTC), which would become a critical resource for the development of affordable housing across the nation.

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— 1987 —

HDC Closes First LIHTC Project

With financing gaps resulting from recent federal tax reform and escalating costs, construction on many multifamily residential projects like Northtown Phase II ground to a halt. HDC responded with its first federally taxable bond issuance and an allocation of low income housing tax credits to recover lost tax incentives in order to bring this 1,107-unit mixed-income development across the finish line.

— Audio —

Eric Enderlin talks about the birth of LIHTC and its ongoing impact

Eric Enderlin

HDC has a strong track record of utilizing the LIHTC program in order to support the City’s efforts to create more affordable housing. New York City has become a model of success for this critical federal tool.

Eric Enderlin, HDC President

The 1990s

Period of Growth and Financial Innovation

— 1993 —

HDC Recognized by Standard & Poor’s

HDC was recognized with “Top Tier” status by Standard & Poor’s Corporation, becoming the first local housing finance agency in the country to achieve an investment grade credit rating on its obligations (AA from Standard & Poors).

— 1993 —

HDC Adopts Its Open Resolution

In 1993, HDC adopted its Multi-Family Housing Revenue Bond Resolution (Open Resolution), which today is HDC’s largest single asset. The Open Resolution is the Corporation’s primary finance program and permits the issuance of an unlimited amount of parity debt. The strength of the Open Resolution lies in its solid financial growth and over-collateralization to provide flexible and cost-effective low-cost capital that can be used to finance the development of affordable housing and efficiently respond to changing realities of the markets.

Open Resolution By the Numbers

As of October 31, 2021
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of bonds issued
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of bonds outstanding
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In assets
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Median Project Occupancy
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Affordable Homes Created
or Preserved
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— 1994 —

NYC REMIC Completes First Full Year of Operations

This year marks the first full year of operations for the NYC REMIC after the NYS Legislature authorized the creation of the “New REMIC” to become incorporated as an HDC subsidiary – in that year REMIC committed to insure 18 mortgages comprising 518 homes.

— Audio —

Terry Gigliello talks about the role of REMIC

Terry Gigliello headshot

Thanks to the credit enhancement provided by REMIC, certain projects in our pipeline have been able to advance that otherwise would not be feasible - providing an important layer of versatility to HDC’s ability to nurture the development of diverse and affordable neighborhoods.

Terry Gigiello, HDC Executive Vice President for Asset Management & EVP REMIC

— 1999 —

HDC Moves Headquarters Back to 110 William Street

HDC moves back to its original home of 110 William Street from 75 Maiden Lane in the Financial District of Lower Manhattan.

The 2000s

Demonstration of Leadership

— 2002 —

HDC Launches Liberty Bond Program to Aid in the Recovery of Lower Manhattan

Following 9/11, the United States Congress provided New York City with authority of $800 million of tax-exempt Liberty Bonds to support the redevelopment and revitalization of Lower Manhattan - a neighborhood HDC’s headquarters have long called home. The following year, HDC launched its Liberty Bond program with the deployment of $245 million in bonds to finance the new construction and office conversions of two developments in lower Manhattan that would result in 1,048 units of multi-family housing.  At the same time, HDC would generate origination funds through this program to be allocated to affordable housing developments across the city.

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— Audio —

Ellen Duffy Discusses HDC’s Innovative Bond Recycling Initiative

Ellen Duffy headshot

HDC is always seeking to make the most efficient use of the limited resources we have in order to maximize public benefit. Recycling allows us to efficiently deploy and preserve volume cap and, in turn, we are able to generate more affordable housing for low-income individuals and families.

Ellen Duffy, HDC Executive Vice President for Debt Issuance & Finance

The 2010s

Bold Strides to Create a More Affordable & Sustainable City

— 2011 —

Green Building Criteria Advances

Even before the devastation of Superstorm Sandy emphasized the need for sustainable development, the City was prioritizing healthier, environmentally conscious design standards. Starting in 2011, all new construction and substantial rehab deals financed by HPD and HDC would be required to adhere for the first time to Enterprise Green Communities criteria and certification.

— 2012 —

Superstorm Sandy Hits NYC

On October 29, 2012, Superstorm Sandy made landfall in New York City, resulting in unprecedented devastation that disproportionately impacted low-income communities. In response, HDC joined the Bloomberg Administration in prioritizing the redevelopment of housing and infrastructure of our coastal neighborhoods that were hardest hit, emphasizing climate-resiliency features that would ensure protections from future storms.

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— 2013 —

NYC Housing Connect is Launched Online!

NYC Housing Connect is launched, allowing the public to search for affordable housing opportunities and submit applications to new housing lotteries online for the first time. Later in 2020, Housing Connect was overhauled to streamline the application process, making the system quicker, easier to use, and more accessible to New Yorkers in need of housing.

NYC Housing Connect logo
Black and white photo of NY Governor Cuomo and NYC Mayor Koch at the selection of housing lottery applicants in 1983

The affordable housing lottery has come a long way thanks to the transformational launch of Housing Connect. Pictured here, is Governor Cuomo and Mayor Koch at the selection of housing lottery applicants in 1983.

— 2014 —

Mayor de Blasio introduces Housing New York Plan

In May of 2014, the de Blasio Administration introduced the Housing New York plan, with an initial goal to produce 200,000 units of affordable housing over 8 years. Later in 2017, this goal was expanded to 300,000 homes by 2026 under Housing New York 2.0.

2014 Housing New York Plan report cover
2017 Housing New York Plan 2.0 Cover
— Audio —

Ruth Moreira talks about creating a more affordable city through the Housing New York plan

Ruth Moreira headshot

The success of the Housing New York plan would not have been possible without extensive collaboration across the public and private sectors. Together with our partners, we made incredible strides towards combating our city’s housing crisis, transforming our neighborhoods for the better, and providing greater opportunity to low-income New Yorkers.

Ruth Moreira, HDC Acting First Executive Vice President

— 2015 —

HDC Introduces Sustainable Neighborhood Bonds

HDC introduces Sustainable Neighborhood Bonds, the first social investment bonds for the creation of affordable housing in the United States. Later, in 2019, this category would be transformed to Sustainable Development Bonds to align with the latest green and social bond market standards.

Early Sustainable Neighborhood Bond Developments

The 2020s

Rising to the Challenge and Expansion of HDC’s Mission

— 2020 —

HDC Launches the Housing Impact Bond Resolution

HDC launched the Housing Impact Bond Resolution to support the expansion of its mission to finance the critical rehabilitation and preservation of our city’s public housing stock under NYCHA PACT (Permanent Affordability Commitment Together). HDC is partnering with NYCHA through PACT to ensure critical improvements and protections for our city’s public housing residents including:

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Comprehensive Building Repairs & Apartment Renovations

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Enhanced Property Management & Social Services

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Guaranteed Tenant Protections

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Permanent Affordability

— 2020 —

Covid-19 Pandemic Underscores the Need for Safe and Affordable Housing

New Yorkers came together like never before to navigate the health and economic impacts resulting from the global COVID-19 pandemic. As the pandemic took its toll, our lowest income communities were among the hardest hit, underscoring the importance of safe and affordable housing. Despite many challenges of the moment, HDC joined our partners in pushing forward an ambitious affordable housing pipeline that would help provide housing stability at a time it was needed more than ever.  

Volunteers handing out food at Project Hospitality food pantry on Staten Island
Medical staff being applauded outside of Coney Island Hospital during pandemic
— 2020 —

HDC Launches Multi-Family Mortgage Assistance & Forbearance Program

HDC launched the Multi-Family Mortgage Assistance & Forbearance Program in response to the economic impacts of the pandemic. Under this program, HDC works with our partners to provide tailored mortgage assistance and forbearance solutions to ensure a strong and stable portfolio.

2021 Annual Report

Our Progress

— Audio —

Susannah Lipsyte talks about the challenges and successes of the past year

Susannah Lipsyte headshot

HDC stepped up to support the city through this unprecedented time in our history, and we continued to work diligently throughout 2021 to ensure more New Yorkers are able to live in a safe and affordable home at a time of great need.

Susannah Lipsyte, HDC Executive Vice President & General Counsel

Closings - Our Progress

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Financed more than


affordable homes

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affordable housing

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newly constructed homes

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preserved homes

Closings - Featured Projects

Atrium at Sumner

Bedford-Stuyvesant, Brooklyn

The Eliza

Inwood, Manhattan

174 new affordable homes

New and improved 20,000 square foot Inwood New York Public Library

State-of-the-art STEM Learning Center, Universal Pre-K program, Activities, Culture, and Training Center (ACTS) operated by CLOTH and The Children’s Village

Gouverneur Gardens

Lower East Side, Manhattan

782 affordable co-operative homes preserved

City-supervised Mitchell-Lama development

HDC financing will support capital projects, improve energy efficiency and reduce long-term costs; including roof and building envelope repairs, lobby upgrades, plumbing repairs, cogeneration installation, and in-unit upgrades

Rockaway Village Phase IV

Far Rockaway, Queens

184 new affordable homes

28 homes designated to formerly homeless households

55 homes will remain permanently affordable

The multi-phased Rockaway Village will include 1,700 units of affordable housing overall, alongside 12,000 square feet of commercial and community facility space

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Ribbon Cuttings - Featured Projects

Hunters Point South – North & South Towers

Long Island City, Queens

The North & South Towers (Parcel C) comprise 1,194 new residential units

719 permanently affordable homes

100 homes for seniors

Senior center operated by Selfhelp Community Services; community center operated by Sunnyside Community Services

Phase 2 of master-planned, mixed-use, mixed-income community, including housing, a 572-seat K-8 school, playground, and 22,000 square foot park

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La Central

Melrose, The Bronx

496-unit mixed-income LEED-Certified development on one of the last large assemblages of formerly City-owned land

220 Permanently Affordable Homes

GrowNYC Urban Roof Farm Onsite, state-of-the art YMCA, and television studio operated by public network BronxNet

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Park Haven

Mott Haven, The Bronx

178-unit affordable development

50 homes for New Yorkers who have experienced chronic homelessness

78 permanently affordable homes

Onsite supportive services and workforce development program operated by BronxWorks

Developed on formerly City-owned land, Passive House Certified; ground floor grocery store offered through the FRESH (Food Retail Expansion to Support Health) Program

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Van Dyke III

Brownsville, Brooklyn

180-unit, 100% permanently affordable development repurposing underutilized Van Dyke NYCHA campus land

Serving extremely-low and low-income New Yorkers, including 31 homes set aside for NYCHA residents; 54 homes reserved for formerly homeless New Yorkers

Onsite social services provided by CAMBA; daycare center operated by Friends of Crown Heights, community health clinic and wellness center operated by BMS Family Health & Wellness Center

PACT Progress

In 2021, HDC closed 3 new NYCHA PACT transactions benefiting 5,200 households across 6 NYCHA campuses in Brooklyn:

map illustration of HDC managed NYCHA campuses in Brooklyn

Baychester and Murphy Houses

Comprehensive renovations were completed this year on HDC’s first PACT transaction, benefiting more than 720 households in The Bronx. The residents of Baychester and Murphy Houses received extensive apartment renovations, critical infrastructure improvements, and an array of onsite social services provided by BronxWorks.

Renovated entrance of the Baychester and Murphy apartment building in The Bronx

Baychester Murphy Exterior

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Exterior of Baychester and Murphy apartment building in The Bronx before renovation
Exterior of Baychester and Murphy apartment building in The Bronx after renovation

Baychester Murphy Exterior (Before & After)

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Baychester and Murphy apartment  kitchen before renovation
Baychester and Murphy apartment  kitchen after renovation

Baychester Murphy Kitchen (Before & After)

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Baychester and Murphy apartment  bathroom before renovation
Baychester and Murphy apartment  bathroom after renovation

Baychester Murphy Bathroom (Before & After)

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Baychester and Murphy apartment  hallway before renovation
Baychester and Murphy apartment  hallway after renovation

Baychester Murphy Hallway (Before & After)

— Audio —

Cathleen Baumann extends thanks to our partners on behalf of everyone at HDC

Cathleen Baumann headshot

This is a turning point in our city’s history, and a fitting time to reflect on more than five decades of leadership in strengthening the health and affordability of our city and improving the lives of our fellow New Yorkers.

Cathleen Baumann, HDC Executive Vice President & Treasurer