Greystone CDE LLC, New York, has announced a new product designed to refinance affordable housing projects in the 10th year of their development.Greystone CDE, an affiliate of Greystone & Co., said the program is designed to benefit developers and owners who generally would have to wait to refinance until the AH project's 15th year. The product allows the general partner to: refinance existing indebtedness; lower interest rates; monetize developers' fees; release overfunded reserves; buy out the limited partner; and post a recapture bond. "Greystone CDE's 10-year refinancing program is ideal for the general partner who wants to achieve two capital events within the final five years of a [Low Income Housing Tax Credit] project," said Matthew James, vice president of Greystone CDE. "There is a general belief that the posting of a recapture bond is cost-prohibitive to such a deal, but in fact, good refinancing will provide an inflow of capital, reduce interest payments, and provide conditions for an easy exit of the limited partner."
