Developers line up for 80/20 financing

The state’s Housing Finance Agency has seen an increase in applications this year from developers looking for low-cost financing in exchange for constructing low-income rental apartments, according to Crain’s. Since the year began, 12 developers have applied for the agency’s 80/20 program, which provides financing for buildings in which at least 20 percent of the units are affordable, up from four applications during the entirety of 2009. None of those four applicants last year were able to obtain enough private financing to qualify for the program, whereas this year, three applicants have already done so (or will soon do so), and another three are likely to do so by the end of the year, the agency said. One such applicant is Glenwood Management, which wants $65 million for its planned, 205-unit Building On West 39th Street. Company vice president Gary Jacob said HFA financing, which is generally 1.5 to 2 percent points below market rates, “is the only way we would build” because “the rate of return just isn’t that great” otherwise. David Walentas’ Brooklyn-based Two Trees Management is also seeking $20 million for a 105-unit project in Manhattan and Mount Sinai Medical Center has asked for an undisclosed sum for a 230-unit project planned for its Upper East Side campus. [Crain’s]