URFA allocated $25 million in SF bonds January 12, 2010
FOR IMMEDIATE RELEASE January 12, 2010
Contact: Sonya Moste, Director of Marketing and Public Relations
ADA Allocated $25 Million in Single-Family Housing Bonds
The Atlanta Development Authority (ADA) recently closed a $25 million single-family housing bond issue funded through the New Issue Bond Program (NIBP). Using authority granted under the Housing and Economic Recovery Act of 2008 (HERA), the U.S. Treasury designed the NIBP to enable housing finance authorities to issue debt that is purchased by Fannie Mae and Freddie Mac and securitized by the Treasury.
On January 12, the Urban Residential Finance Authority (URFA), a subsidiary of the ADA, issued $25 million in bonds to finance 30-year fixed-rate mortgages, with an anticipated interest rate of between 5 and 5.125 percent. This allocation must be disbursed by December 31, 2010. URFA is currently accepting applications from lending institutions that wish to participate in the single-family NIBP.
"In an economically challenging housing market, we are proud to be in a position to make the dream of homeownership a reality for 180 families this year," says Dawn Luke, deputy managing director of housing finance for the ADA.
Eligible properties must be located within the city of Atlanta and can be newly constructed, existing or foreclosed. The maximum purchase price of a home is $374,268 inside the target area and $306,219 outside the target area. Borrowers purchasing homes in the target area do not have to be first-time homebuyers, but they must sell their current residence before closing on the new property. Outside the target area, buyers should be purchasing their first home and should not have had an ownership interest in a principal residence for the past three years. Loans must be FHA, Fannie Mae or Freddie Mac insured loans. Income limits apply.
Buyers may also qualify for the Opportunity Bond or Beltline Affordable Housing Trust Fund mortgage assistance loans, which provide the borrowers with additional downpayment assistance of 10 to 20 percent of the sales price.
URFA has provided assistance to development projects that have contributed $1 billion in construction and mortgage investment to the city of Atlanta since 2002. Using a variety of financial tools such as tax-exempt bonds, federal neighborhood stabilization dollars and housing and homeless opportunity bonds, URFA contributed to the creation of more than 8,600 housing units in the city, where 70 percent are considered affordable for working-class families.
ABOUT ATLANTA DEVELOPMENT AUTHORITY
The Atlanta Development Authority is the official economic development agency for the city of Atlanta. ADA represents in-town Atlanta, which has a population of 530,000 and growing. ADA is a research-based economic development organization, focused on residential, business and investment growth in the city. Visit www.atlantada.com.