Build NYC provides access to tax-exempt and taxable bond financing for 501(c)(3) organizations to acquire capital for real estate projects, debt refinancing and other operational needs.
Why bond financing?
- Lower interest rates than conventional loans
- The ability to refinance existing debt
- Full waiver from the 2.8% mortgage recording tax
- Build NYC does not require a bond rating
- Build NYC debt can be structured with variable or fixed interest rates
Borrowers work with an underwriter or placement agent and, in some cases, a financial adviser to determine the structure of the bond offering. A variety of factors specific to the borrower and its proposed project, including debt service coverage, will determine the specific interest rate. Bond amounts below $5 million may not make financial sense for some borrowers; Build NYC is a discretionary program and together with the borrower’s adviser, underwriter and/or placement agent, will help evaluate whether bond financing is appropriate.
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Exempt Facility Program
Companies developing facilities described as "exempt facilities" under the Internal Revenue Code may be able to access tax-exempt bond financing. Exemptions from mortgage recording tax may also be available.
- 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
Contact one of our representatives by emailing:
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