Taxable Mortgage Initiative (TMI)


The Taxable Mortgage Initiative provides an alternative to multifamily financing that does not rely on bond financing.  Thus, the time, cost and complexity of first mortgage debt financing are eliminated. 
The TMI is designed to provide affordable housing opportunities to persons of low, moderate and middle income. Therefore, income is restricted to 60% of Area Median Income (AMI) on projects receiving a 9% Low Income Housing Tax Credit (LIHTC) allocation.  For TMI financings that do not receive a LIHTC allocation the tenant income is restricted to 110%-150% of AMI for moderate and middle income projects. (Moderate income transactions are restricted to 110% of AMI in the following counties: Westchester, Rockland, Nassau and Suffolk.) Maximum rents restrictions associated with income limits apply. 
Instead of issuing bonds, the Agency originates a mortgage and note which are assigned to an acceptable construction lender.  Upon construction completion and stabilization the construction lender assigns the loan to a permanent lender acceptable to the Agency. The New York State Common Retirement System (NYCRS) and the New York City Employee Retirement System (NYCERS) have been the most active TMI permanent lenders to date. The SONYMA Mortgage Insurance Fund provides permanent mortgage insurance to TMI participating lenders.
Subsidy financing, which may take the form of a subordinate loan or grant, may be available from federal, state and local sources including the NYSHFA Empire Housing Fund Program.


Allocations are subject to an analysis of the project’s need, the projected benefits to low income households, and the availability of subsidy funds and/or 9% tax credits. 
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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