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We have worked on several Section 8 11(b) financings with the Jersey City Housing Authority through its various 11(b) corporations. However, only one of these issues could be refunded – Audubon Park Apartments – financed by the Audubon Development Corporation. The Property was owned and managed by a private entity and the underlying mortgage was FHA insured.
The refunding was accomplished using a structure consisting of three series of bonds, two series of Senior Bonds in the amount of $9,432,000 which were AAA rated, $8,138,000 were offered as tax exempt bonds and $1,294,000 were offered as taxable bonds. Additionally, the issue included Junior Bonds in the amount of $400,000, which were unrated. The junior lien bonds were marketed to sophisticated institutional investors in a private placement. The Authority obtained significant savings from this refunding which it will use to fund new housing initiatives.