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Build NYC’s Not-for-Profit Bond Program facilitates access to private activity tax-exempt bond financing for not-for-profit institutions to acquire, construct, renovate and/or equip their facilities.
Not-for-profit organizations that are planning major capital projects may be able to use triple tax-exempt bonds issued by the Build NYC Resource Corporation to finance the acquisition, construction, renovation, and equipping of their facilities.
Financing a project with triple tax-exempt bonds enables borrowers to initiate needed capital improvements at the lowest available cost and to better manage the timing of their capital investments.
To limit annual debt service, bonds can be repaid over a 20-30 year period with capital campaign receipts or other income.
Eligible borrowers will include not-for-profit corporations with federal 501(c)(3) status which are either incorporated in New York State or otherwise qualified to do business within the State.
Build NYC approves proposed financing projects on a discretionary basis. Selection considerations include (but not limited to):
Eligible borrowers must provide financing commitments for their proposed projects.
The environmental condition of the project site(s) and the company’s liability and other insurance coverage must be satisfactory to Build NYC prior to closing. Insurance coverage must be maintained throughout the project term.
Compared with conventional loans, advantages of triple tax-exempt bonds can include reduced interest rates, longer financing terms, lower equity contributions, and, depending on the project, the ability to obtain construction and permanent financing in a single loan.
To assist borrowers in assessing the cost-effectiveness of financing their proposed projects with tax-exempt bonds, Build NYC staff works with borrowers during their decision-making process prior to accepting applications.