Developers Buckle Under, Sort Of

The state Housing Finance Agency’s deadline to reapply for tax-exempt bonds is today–a really dry-sounding event but part of a process that could have a huge impact on how quickly the West Side is developed and how.

While not all of the nine developers seeking tax-exempt financing said they could abide the state’s new financing requirements, at least they responded–which is more than one, Jeffrey Levine, had indicated he would do.

“I have received a letter from every developer to whom we sent letters. Some say our new criteria is workable; others say that it’s not,” Priscilla Almodovar, HFA president and chief executive, told The Real Estate on Friday afternoon. “Those who say that it is not workable have made suggestions of things that we should consider to make it workable.”

On Feb. 26, Ms. Almodovar capped the amount of bonds that developers could receive at $1.5 million for each affordable unit because her agency was not able to accommodate the overwhelming demand coming from companies eager to settle the Hudson Yards neighborhood.

She said she would review the responses in the next few days and try to resolve the situation quickly.

- Matthew Schuerman