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.
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