The New York City Housing Development Corporation is issuing its 2026 Housing Impact Bonds (Series A tax‑exempt and Series B taxable) to fund a mortgage loan for Nostrand Houses Preservation LLC, an instrumentality of the NYC Public Housing Preservation Trust. Proceeds will finance acquisition, rehabilitation, and equipping of 1,145 units across 16 tenant‑occupied NYCHA public housing buildings in Brooklyn, converting them to a Section 8 multifamily residential facility under HUD’s Trust Program. The 2026 Mortgage Loan is expected to be about 214,690,000 and will fund extensive unit and systems upgrades, including full kitchen and bathroom renovations, new elevators and windows, façade repairs, electrified space heating plus AC, plumbing and electrical upgrades, ventilation and accessibility improvements, and common‑area and management space enhancements.Supplemental construction‑phase security is being provided through facility accounts funded by Merchants Capital Corp and the AFL‑CIO Housing Investment Trust, with permanent FHA Risk‑Sharing insurance expected after rehabilitation, and NYCHA will continue as property manager. For vendors, the bond financing confirms that a large, multi‑year capital rehab and modernization program at Nostrand Houses is fully funded and moving into execution, creating ongoing opportunities for specialty trades, building systems suppliers, decarbonization technology providers, relocation and resident‑services firms, and professional services supporting design‑build delivery and Section 8 compliance.

Design‑build is led by SLSCO/Community Modernization Group with Sweet Group of NY; NYCHA remains owner and long‑term ground lessor and will provide property management. Section 8 RAD/Section 18 blend HAP contract will support long‑term operating subsidy; project is designated as Sustainable Development Bonds under HDC’s framework.