November 23, 2011
Treasury Seal.jpg

Moments ago, the Treasury Department announced the extension of the New Issue Bond Program (NIBP) through 2012  and the Temporary Credit and Liquidity Program (TCLP) through 2015, with accompanying term sheets.  

NCSHA has been working with Treasury constantly over the last several months to secure these extensions.  During a call with NCSHA’s Executive Committee this morning, Treasury officials described the many challenging legal, policy, business, programmatic, and operational issues they have wrestled with over the last several months that necessitated several of the extension terms.
 
According to the term sheets, HFAs will be able to use their remaining NIBP allocations until December 31, 2012. In addition, Treasury is:
 
  • Eliminating the requirement that HFAs issue market bonds in conjunction with single-family issues.
  • Allowing HFAs to use single-family NIBP allocations for multifamily activities.
  • Increasing the cap on the amount of an HFA’s NIBP resources it can use to refund variable-rate debt to 40 percent from 30 percent.
  • Establishing a new rate-setting system for NIBP bonds based on the weighted average life of the bonds being issued.
  • Charging an additional credit premium of 80 basis points on new multifamily NIBP bonds.
  • Imposing a 30 basis points-per-year redemption fee on NIBP funds redeemed after April 1, 2012.
 
According to Treasury, the NIBP program has helped HFAs finance more than 100,000 single-family homes and more than 24,000 rental homes, as of the end of the September 30, 2011, since it was created in 2009.