Treasury New Issue Bond Purchase Program
In October 2009 the Obama Administration announced its Housing Finance Agency (HFA) Initiative, also known as the New Issue Bond Purchase Program (NIBP). Under the program the U.S. Treasury agreed to purchase up to $15.3 billion in tax-exempt single-family and multifamily housing bonds that were bought from HFAs, securitized by the Government-Sponsored Enterprises, Fannie Mae and Freddie Mac, and sold to Treasury.
NALHFA played a key role on behalf of its members in shaping the program at its conceptual stage and through implementation. From the point of view of local HFAs the program was highly successful. As of September 30, 2011 33 of 35 local HFAs used $269,870,000 of their $1,018,740,000 authority allocated for single-family to assist 7,540 homebuyers, 97% of whom were first-time homebuyers with average incomes of 78% of the area median income purchase affordable homes.
On the multifamily side of the program 11 of 12 local HFAs used $794,810,000 of the $1,139,110,000 in allocated authority to finance new construction or preservation of 9,427 units, 91% of which were affordable to households with incomes at or below 60% of median income.
NALHFA leaders and staff, assisted by an able group of affiliate members providing technical assistance, are actively advocating for a Round 2 of NIBP. On-going discussions continued with key federal officials.
Below are links to key documents that describe the NIBP program.
Presentations on NIBP from the 2012 NALHFA Annual Conference-