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.

NYCEDC is very pleased to announce the publication of the 2024 Incentives Portfolio Annual Report. Please click here for additional information.

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