Cases & Deals

Citibank finances one of the largest public housing deals in U.S. history to be financed with low-income-housing tax credits and bonds

Clients Citibank, N.A.

Jones Day advised Citibank, N.A., the credit enhancer and construction loan administrator and servicer, in one of the largest bond and low-income-housing tax credit financed public housing deals in U.S. history.

In connection with this unprecedented public-private partnership transaction, twenty-one public housing developments consisting of approximately 20,000 New York City apartments owned by the New York City Housing Agency (NYCHA) were partially ground leased, and partially conveyed, to two limited liability companies (LLCs) created and managed by NYCHA. The LLCs received separate bond proceed-financed loans from the New York City Housing Development Corporation (HDC) for acquisition and construction costs for the projects, which loans were credit-enhanced by Citibank. In addition, the deal structure allowed NYCHA to take advantage of additional financing available under the American Recovery and Reinvestment Act of 2009 through the U.S. Department of Housing and Urban Development. Collectively, the transaction provided in excess of $600 million in debt and equity financing to the LLCs.

Jones Day, on behalf of Citibank, and with HDC and NYCHA and their counsel, structured, documented, and conducted due diligence for this complex real estate, debt, bond, and equity financing.