Tax-Exempt Bonds for Your Nonprofit

Build NYC Resource Corporation (Build NYC) helps 501(c)(3) organizations and other exempt facilities make real estate capital investments by accessing low-cost debt through tax-exempt bond financing.

Program Benefits

1. Lower Interest Rates: Tax-exempt bonds typically offer lower rates than other types of loans.
2. Mortgage Recording Tax: The 2.8% mortgage recording tax may be waived.
3. Refinance Existing Debt: Pay down existing debt inexpensively using Build NYC bonds.
4. Longer Repayment Terms: Financing terms can be as long as 30 years.

Program Eligibility

Registered 501(c)(3) organizations, including the following types, have received low-cost financing through Build NYC:

• Primary & Secondary Education
• Higher Education
• Cultural Institutions
• Social & Human Services
• Hospitals & Healthcare
• Qualifying Exempt Facilities

Qualifying Exempt Facilities

Companies developing "exempt facilities" under the Internal Revenue Code may be able to access tax-exempt bond financing. Exemptions from the mortgage recording tax may also be available. These facilities include:

• Airport facilities
• Dock and wharf facilities
• Solid waste disposal facilities
• Recycling facilities
• Transportation-related infrastructure
• Other projects eligible for qualified private activity bond financing pursuant to the Internal Revenue Code

Factors Considered by Build NYC

• Entity must be a registered 501(c)(3) or a qualifying exempt facility
• Size of the financing (<$5M may not be cost-effective)
• Financial strength of applicant and ability to pay debt service