80/20 Program


The 80/20 Program offers financing for the creation of affordable multifamily rental housing in high cost rental markets in New York State. 
The federal Tax Code requires that a minimum of 20% of the units in a multifamily rental housing development financed with the proceeds of tax-exempt bonds must be set aside for households with incomes at 50% or less of the Area Median Income (AMI), adjusted for family size.  Alternatively, the Tax Code will allow that 40% or more of a project's units (25% in New York City) must be affordable to households whose income is 60% or less than the AMI, adjusted for family size. 
Under The 80/20 Program, it is expected that 20% of a project's units must remain affordable to low income households and these units will be subject to a Regulatory Agreement from the NYS HFA.  The NYS HFA Regulatory Agreement will assure, among other things, that the maximum rent on these affordable units cannot exceed 30% of the applicable income limits.  The remaining units in an 80/20 project are available to households at market rate rents. 
The tax-exempt bond financing generates 4% “as of right” Low Income Housing Tax Credits (LIHTC), which can either be syndicated to generate part of the required equity a borrower must contribute to the financing or be utilized to offset the borrower’s tax payments.  All bond financed mortgages, including those financed under the 80/20 Program, must be credit enhanced. 
All bond financed mortgages, including those funded under this program, must be credit enhanced. 


Allocations are subject to an analysis of the project’s need, the projected benefits to low income households, and the availability of tax credits and tax-exempt bonds. 
Applications for financing under this program are accepted on a continuous basis. 


NYS Housing Finance Agency
641 Lexington Avenue, 4th Floor
New York, NY 10022
(212) 688-4000

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