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A message from NALHFA: Important Information about NIBP

A message on behalf of NALHFA

Dear NALHFA Members: Today the Treasury Department announced an extension of the New Issue Bond Purchase Program and the Temporary Liquidity Facility. NIBP will be extended for one year, i.e. through 2112 and TLCP for three years, i.e. through 2015. In a conference call this morning with the leadership of NALHFA and NCSHA senior Treasury officials outline the legal hurdles that had to be overcome to be able to extend the program. Without going into a lot of detail, they included the fact that Treasury’s authority to undertake the program under the Housing and Economic Recovery Act of 2008 has expired, there are cost that have to be offset because there is no current year appropriation to pay for the extension. Among the goals of the extension are to provide more flexibility to HFAs, i.e. to use unused single family allocation for multifamily project(s)so as to maximize available allocations, getting fees to offset the cost of the extension, a change in how interest rates are set (see Term Sheet) and an exit strategy for the NIBP and TCLP programs.  

Attached to this email is an election letter, which must be emailed to Treasury on or before 5 P.M. on December 9th, the NIBP Term Sheet and the TCLP Term Sheet. Treasury will be holding a webinar on the extension of NIBP on Tuesday, November 29th at 1:30 P.M. I will forward details when I have them.  

On behalf of the NALHFA staff have a Happy Thanksgiving. John

Attachments:

Election Letter

NIBP Term Sheet

TCLP Term Sheet

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