The net proceeds of the subseries are being used to reimburse the city for prior spending on affordable housing that contributes to the social goals of the city. The City of New York has established strategic plans to, among other things, create or preserve 300,000 affordable housing units, including for the homeless, by 2026 and increase the overall housing supply, which is mapped to the 2015 United Nations’ Sustainable Development Goals.
The city’s Department of Housing Preservation and Development (HPD) administers three key programs (among others) that it supports using the proceeds raised under its social financing framework. The three programs are the ELLA Program, which funds the new construction of low-income multi-family rental projects; the SHLP, which provides low-interest loans to develop permanent supportive housing with on-site social services; and the SARA Program, which provides gap funding for affordable housing for low-income seniors. Specifically, the social bonds support the financing of 3,276 affordable housing units.
Nixon Peabody’s deal team included partners Chris Reitzel and Angelica Valencia, counsel Jeff Pohl, and associates Katharine Stack and Sebastian Torres of the Project Finance and Public Finance practice.