HFA, SONYMA, MBBA & TSFCFiscal Year 2018

Financial Statements Presentation

January 24, 2019

2

Agenda Introduction (Sheila Robinson– Senior Vice President / CFO)

Overview of Financial Statements (Darryl Johnson – Vice President / Deputy CFO)…….…......3

Audited Financial Statements (Gary Weinstock – Vice President / Comptroller)

General Comments

Municipal Market………………(James McIntyre – Vice President, Bond Finance)......……..5

SONYMA………………………………………………………………….………………….………..10

Program and Portfolio Information (Sherri Eckles – Senior Vice President)

Mortgage Insurance Fund (Michael Friedman – Senior Vice President MIF)

Financial Highlights (Gary Weinstock)

Restricted and Unrestricted Net Assets (Gary Weinstock)

Liquidity and Swaps (Desmond Gooding – Vice President / Treasurer)

HFA…………………………………………………………….………………….……….20

2018 Production (James McIntyre – Vice President, Bond Finance)

Financial Highlights (Gary Weinstock)

MBBA……………………………………..…………………………………………………………....24

Financial Highlights (Gary Weinstock)

TSFC……..……………………………………………………………………………………………..26

Financial Highlights (Gary Weinstock)

Ernst & Young Presentation (Louis Roberts, Partner)

Required Communications (SAS 70)

Management Letter / Investment Letter / Audit Results Book

FINANCIAL STATEMENTS OVERVIEW

3

Comparison: HFA, SONYMA, MBBA & TSFC

4

Fiscal Year October 31, 2018

Do

llars

In T

ho

usa

nd

s

Revenues, Expenses and Change in Net Position

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

HFA SONYMA MBBA TSFC

Total Revenues and inflows

Total Expenses and outflows

Change in Net Position

TSFC: All bonds were redeemed in June 2017.

MUNICIPAL MARKET

5

Municipal Volume in 2018

6*Taxable bonds include BABsSource: Bond Buyer COB 01-03-2019

2018 Municipal Issuance decreased by 22.3% YoY

0

50

100

150

200

250

300

350

400

450

500

2014 2015 2016 2017 2018

Tax-Exempt AMT Taxable

($ Billions)

7

Municipal Housing Issuance 2014-2018

• Key 2018 Housing Facts:• Housing issuance decreased by 0.4% YoY• Multifamily issuance decreased by 5.8% YoY• NYSHCR is the #1 housing issuer in the nation, comprising 13.1% of the sector

44%49%

64% 49% 52%

56%

51%

36%

51% 48%

0

5

10

15

20

25

2014 2015 2016 2017 2018

Single Family Multifamily

($ Billions)

2018 - 2019 Critical Drivers – Agencies’ Activities

8

HFA In 2017, Governor Cuomo announced $20 BN commitment to produce

100,000 units of affordable housing over 5 years Increased State capital resources have stimulated additional bond

financingDecrease in 80/20 issuance Increased private placements including back to back structure

SONYMA Focus on managing variable rate exposure Maintain program originations Expand neighborhood stabilization initiatives:

NRP

Purchase FHA notes (off balance sheet) CRF

Renovation Loan program

HFA & SONYMA Limited volume cap

Three Year Comparison: HFA, SONYMA, MBBA & TSFC

9

Bonds Issued (Fiscal Year)(in 000s)

Total Bonds $2,562,844 $2,849,572 3,148,311

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2016 2017 2018

HFA 2,284,254 2,513,437 2,710,956

SONYMA 278,590 336,135 437,355

MBBA - - -

TSFC - - -

Do

llars

in T

ho

usa

nd

s

The Agencies have a total of $20.7 Billion bonds outstanding as of Oct 31, 2018. HFA $17.7 billion, SONYMA $ 2.6 billion, MBBA $363 million, TSFC $ 0.

STATE OF NEW YORK MORTGAGE AGENCY

10

2018 Bond Program Production *

Achieving the Dream Current rate: 4.500%

80% AMI or less

Low Interest Rate Program

Current Rate: 4.875%80-115% AMI

Down payment Assistance Loan (DPAL)

10 year, non-interest bearing, forgivable 2nd lien

Neighborhood Revitalization

ProgramReturning vacant

properties to market

New Targeted Lending Programs

Section 8 Homeownership, Manufactured Housing Loans

Resilient Renovation Loans

RemodelNYPurchase Renovation

• Purchased 1,813 loans, up slightly from 1,772 in 2017

• $370.8M in purchased loans, up slightly from $352M in 2017

• 54% of our borrowers received Down Payment Assistance worth $6.6 Million

• 97.3% of SONYMA loans are current (4% better than the NY State average)

11* Calendar year.

SONYMA Priorities

12

0

200

400

600

800

1,000

1,200

2016 2017 2018

Putting Low Income Families into Homeownership: SONYMA is committed to helping low and moderate income families build for the future by realizing homeownership. Annually, more than 65% of our lending is to families below 80% AMI.

480

500

520

540

560

580

600

2016 2017 2018

Serving Marginalized Communities and Communities of Color: In 2018 we increased our outreach and support for our partners who serve minority majority communities.

0

50

100

150

200

250

2016 2017 2018

Assisting Federally Designated High Poverty AreasSONYMA targets its homeownership lending to communities that are struggling to combat poverty, including new programs launched in 2018 that specifically target high poverty rural communities.

Community Restoration Fund (CRF)

13

In 2017 SONYMA launched a highly innovative program to acquire distressed mortgages from private banks and federal agencies in order to provide relief to NY homeowners struggling to avoid foreclosure.

The program has been hugely successful and we anticipate expanding this program over the next several years. To date we have:

Acquired 570 non preforming notes located across New York State

Are on track to provide mortgage modifications to almost 40% of those borrowers who will keep their homes and avoid foreclosure as a result

Leveraged equity and private capital to turn $10 Million in HCR subsidy into more than a $112 Million fund

HCR also anticipates having most of our subsidy refunded as loans are resolved allowing us to recycle these dollars and to assist even more at risk New York homeowners avoid foreclosure and stay in their homes.

STATE OF NEW YORK MORTGAGE AGENCY:MORTGAGE INSURANCE FUND

14

MIF Monthly Tax Surcharge Collections

15

FY2018 FY2017 FY2016 FY2015 FY2014

November 12,655,270 13,724,429 15,587,053 18,164,653 14,282,959

December 14,856,067 12,790,858 12,878,094 12,521,936 11,376,990

January 12,109,417 17,266,262 16,825,804 18,682,230 12,771,608

February 14,500,598 12,849,160 14,296,102 13,973,759 15,273,106

March 10,096,336 11,541,353 16,713,273 14,104,376 7,730,719

April 10,958,241 12,001,748 16,207,059 14,929,005 12,285,367

May 12,946,879 11,386,952 13,779,184 15,485,556 11,218,227

June 15,263,668 14,776,248 16,130,790 15,262,485 14,492,088

July 10,732,726 15,369,418 14,497,561 14,296,831 12,208,056

August 15,694,913 11,916,775 13,824,339 18,209,286 13,033,281

September 12,323,278 14,875,845 13,374,255 14,904,865 13,530,761

October 9,901,062 12,010,982 16,717,693 19,580,090 12,878,543

Totals: 152,038,455 160,510,030 180,831,207 190,115,072 151,081,705

MIF Project Commitments By Loan Amount

16

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

2014 2015 2016 2017 2018

CPC

NYSHFA

NYCHDC

MIF Project Commitments By Units

17

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2014 2015 2016 2017 2018

CPC

NYSHFA

NYCHDC

STATE OF NEW YORK MORTGAGE AGENCY:LIQUIDITY AND SWAPS

18

SONYMA Variable Rate Debt$371,055,000 Outstanding as of 10/31/18

Swap ProvidersLiquidity Providers

BONY (Aa2) -26.3%

$70,000,000Due 10/1/33

JPMorgan Chase (Aa2) - 12.8%$34,000,000Due 4/1/37

Wells FargoBank (Aa2) -

27.2%$72,635,000 Due 10/1/33 and 10/1/35

Royal Bank of Canada (Aa2) -

33.8%$90,000,000 Due 10/1/28

Wells Fargo Bank (Aa2) - 36%$133.7M – Expires Aug. 2019*

Barclays (A2) - 14%$52.6M – Expires May 2021

JPMorgan Chase (Aa2) – 8%$29.3M – Expires May 2019*

Bank of America (Aa2) - 13%$48.7M – Expires May 2021

Royal Bank of Canada (Aa2) - 29%$106.7M – Expires Sep. 2019-2023*

* Currently being negotiated.

Total Liquidity Principal Outstanding: $371,055,000 Total SWAP Notional Amount: $266,635,00019

NEW YORK STATE HOUSING FINANCE AGENCY

20

Units and Projects Financed*Projects Financed by Fiscal Year

21

Units Financed by Fiscal Year

5,1615,798

6,380 6,126 6,380

3,915

4,028

1,164 1,040 615

2014 2015 2016 2017 2018

Affordable Market

32

41

39

34

40

2014 2015 2016 2017 2018

*Includes new AHRB projects and 80/20 projects by fiscal year

Open Resolution Snapshot

22

Portfolio Snapshot

2018 Fiscal Year Affordable Housing Revenue Bond Stats $894.48 Million Bonds Issued * 37 Projects Financed Over 5,400 Units Financed

$4.22 Billion Bonds Issued

($3.20 Billion Bonds Outstanding)

$4.20 Billion Mortgage

Loans

($3.19 Billion Outstanding)

225 Projects Over 35,300

Units

128 Projects Converted

88 Projects in Construction

* 2018 Fiscal Year Issuance doesn’t include previously financed back to back refunding transactions“Projects Converted” includes 9 projects that never had a long term component. Project Status (converted vs. construction) includes conversions through October 31, 2018.

HFA 2018 Financial Statement Highlights

Bonds Outstanding of $17.7 Billion New Bonds Issued - $2.7 Billion

Financing 40 new projects

6,995 units, of which 6,380 are affordable housing units

Mortgage Loan Receivables of $16.8 BillionIncrease of 7% from prior year

Fees totaled $74.7 MillionDecrease of 3% from prior year due to decline in 80/20

projects

23

STATE OF NEW YORK MUNICIPAL BOND BANK AGENCY

24

MBBA 2018 Financial Statement Highlights

Bonds Outstanding of $362.9 MillionNo bond issuances during fiscal 2018

Fees and Charges totaled $217 thousand

25

TOBACCO SETTLEMENT FINANCING CORPORATION

26

TSFC 2018 Financial Statement Highlights

All outstanding bonds were redeemed in fiscal 2017. Tobacco Settlement Revenue (“TSR”) payments continue to be due to the Corporation. In fiscal 2018, TSR payments were received in the amount of $332.8 Million.

27

HFA, SONYMA, MBBA & TSFCFiscal Year 2018

28

NEW YORK STATE HOUSING FINANCE AGENCY

LIST OF MEASUREMENTS FOR CALENDAR YEAR 2018

HFA’s performance can be measured by the following criteria, subject to market conditions

and demand for our products in any calendar year:

1. Number of low to moderate income units financed:

HFA financed a total of 37 projects that created and preserved 6,789 total units and 6,508

affordable units. This included 24 new construction projects that created 3,387

affordable units and 13 preservation projects that preserved 3,121 affordable units.

2. Regional representation of projects financed:

Of the 6,508 HFA affordable units created or preserved,

• 2,608 (40%) were in New York City

• 1,580 (24%) were in Westchester and Long Island

• 2,320 (36%) were in the remainder of New York State.

The 37 HFA projects were in 17 different counties and 18 different cities.

3. Productive or creative use of financing mechanisms that provide the most efficient

capital market executions:

HFA continued its programmatic reach with the continued expansion of its existing

programs the launch of one new program. Under the Housing Plan, we continued the

following initiatives that were introduced in the past several years:

• Supportive Housing Opportunity Program, New Construction Program,

Multifamily Preservation Program, Middle Income Housing Program, Public

Housing Preservation Program, Mitchell-Lama Program, Senior Housing Program,

and Federal Housing Trust Fund Program.

In the past year, HFA launched the Small Building Participation Loan Program, which

provides gap project financing assistance for qualified housing developers for acquisition,

capital costs and related soft costs associated with the preservation and improvement of

rental properties in buildings of 5 to 40 units located outside of New York City.

4. Use of Green initiatives and issuance of Green Bonds

In support of the Governor’s initiatives to reduce carbon emissions, HCR continues to

strive to make affordable housing energy efficient. Multifamily projects supported by

HCR financing have green guidelines that promote the use of national standards for

energy efficiency or NYSERDA programs in the construction or preservation of

affordable housing.

HFA New Construction:

New York State is the leader in the use of certified Green Bonds for affordable housing in

the United States. Since December of 2016, New York State HFA bonds for new

construction projects have been certified by the Climate Bond Initiative (CBI). CBI is an

international not-for-profit organization supporting financing for projects around the

world that help reduce the impact of climate change. CBI provides oversight of their

strict standards that engenders the confidence of investors in these Green Bonds.

In 2018, HFA issued Green Bonds for 21 projects, totaling $609 million in bonds for the

creation of 2,885 units. All new construction projects must met national standards of

energy efficiency that will greatly reduce carbon emissions and participate in the

benchmarking of utility usage during the years of their HFA regulatory period. Nearly a

trillion dollars in CBI certified bonds have been issued since the inception of the NYS

HFA green bond program.

HFA Preservation:

The target goal for moderate rehabilitation of existing buildings being preserved as

affordable housing that cannot meet national standards for energy efficiency is to reduce

their energy use by 20%. As part of the HFA application process, a combined physical

needs assessment and an energy audit are required. This tool is the Integrated Physical

Needs Assessment (IPNA), and is used to evaluate the proposed scope for projects along

with the historical energy usage data provided by benchmarking.

Unified Funding Application:

Of the 45 new construction or rehabilitation projects awarded HCR financing under the

2017 Unified Funding Application Round, all but 3 projects proposed the utilization of a

national energy efficiency standard or NYSERDA-recognized program. All projects

produced through this funding round will reduce energy usage compared to typical

housing development and have an impact in addressing climate change in New York

State.

STATE OF NEW YORK MORTGAGE AGENCY

LIST OF MEASUREMENTS FOR CALENDAR YEAR 2018

The number of mortgages purchased and the incomes served;

For the calendar year of 2018, the State of New York Mortgage Agency achieved

the following, in accordance with the measurements outlined in the mission statement for

that year.

1) The Agency purchased 1,813 mortgages, serving the following incomes:

Income Ranges

Distribution

of Purchases

>100% of AMI 26.64%

80.1% to 100% of AMI 24.49%

60.1% to 80% of AMI 29.07%

50.1% to 60% of AMI 10.81%

<=50% of AMI 8.99%

The geographic diversity of mortgages purchased as well as number and

geographic diversity of participating originators

2) SONYMA participating lenders cover the entire state, and loans were

purchased in accordance with the following geographic:

Region % of Loans Purchased

1 - Buffalo 11.80%

2 - Rochester 11.47%

3 - Syracuse 1.16%

4 - Binghamton 4.08%

5 - Mid-Hudson 8.11%

6 - Capital 7.17%

7 - Mohawk Valley .99%

8 - Downstate 8.38%

9 - Long Island 33.20%

10 - NY City 13.62%

The performance of the loan portfolio

3) The loan portfolio performed with delinquencies as of November 30, 2018 at

2.69% of loans, which was significantly better than the state average of 5.21%

and close to the national average of 2.93%

Fiscal Health

4) The state of the State of New York Mortgage Agency’s fiscal health is set forth

in attachment A.

Introduction of innovative programs and products that accomplish the

foregoing

a. Focus on Low-Income Homebuyers: During 2018, the Agency continued

to direct its energies towards providing mortgage loans to those individuals and

families for whom SONYMA mortgages make the difference in achieving

sustainable homeownership. This was accomplished by continuing to focus

mortgage financing activities on the Achieving the Dream Program, which

assists lower-income homebuyers. In 2018, 1,214 of the Agency’s mortgages

were originated under this program, up slightly from 1,149 in 2017 and 1,296

in 2016. Overall, 886 of the mortgages purchased were made to low-income

homebuyers (80% of area median income or less), up slightly from 835 in 2017

and 1,022 in 2016, and 589 loans SONYMA purchased statewide were made to

minority households, up from 578 in 2017 and 517 in 2016.

b. Promote and Extend the Reach of the SONYMA Mortgage Backed

Securities Programs: In order to fully participate in the MBS market,

SONYMA is looking at options to purchase Conventional, FHA, VA and

USDA products. This will enable the direct purchase of loans from lenders,

improving loan pricing and execution. In 2017, SONYMA continued

developing and began staffing to implement the requisite Quality Control plan,

and revised that plan to incorporate new TILA-RESPA Integrated Disclosure

(TRID) guidelines mandated by the CFPB. The Quality Control plan was fully

implemented effective January 1, 2018. SONYMA also continued to promote

and expand our MBS program offerings through our current delivery channel

with M&T Bank.

o FHA Plus, initially offered in December 2013, takes advantage of a

special exemption from HUD that enables state housing finance

agencies to offer down payment assistance on FHA-insured mortgages,

where the down payment assistance may be used towards the borrower’s

minimum cash investment. Further, FHA mortgages offer other

underwriting advantages and have slightly more lenient credit standards

than conventional loans. Under this program, 126 mortgages of $29.7

million in total principal and $0.9 million in Down Payment Assistance

were originated in 2018. In addition, the Agency had 40 mortgages of

$10.8 million in total principal and $320,000 in Down Payment

Assistance in its pipeline.

o Conventional Plus, initially offered in November 2012, complements

SONYMA’s existing tax-exempt bond financed programs and the FHA

Plus Program described above. The product is designed to take

advantage of certain pricing and underwriting benefits afforded to

SONYMA by Fannie Mae. Among other benefits, Conventional Plus is

available for home purchases and for limited cash-out refinances. Under

Conventional Plus, 57 mortgages of $6.9 million in total principal and

$41,000 in Down Payment Assistance were originated in 2018. In

addition, the Agency had 17 mortgages of $2.1 million in total principal

and $9,800 in Down Payment Assistance in its pipeline.

c. Launch- SONYMA Express® Automated System to More Participating

Lenders: The Agency has continued to enhance the SONYMA Express®

automated system that was developed to assist participating lenders by

providing expedited decisions on SONYMA loan eligibility. The system has:

(a) streamlined the Agency’s loan origination process and dramatically reduced

the time it takes participating lenders to originate SONYMA loans; (b)

eliminated uncertainty of a borrower’s eligibility early in the mortgage

application process; (c) lowered overall lender costs; and (d) provided lenders

with the capacity to submit electronic loan files to the Agency, thus eliminating

the need to submit paper files. Continued efforts to improve user experience

through SONYMA Express®, led to active use among most lenders in 2018,

increasing the percentage of SONYMA volume coming through the system

from 63% in 2017 to 79% in 2018. All lenders except for one migrated in 2018

to either SONYMA Express® or SONYMA’s new BlitzDocs File Delivery

Portal for electronic loan delivery, virtually eliminating all paper loan file

submissions.

d. Continuing efforts to educate and train major stakeholders on key

SONYMA program details: SONYMA has continued to offer bi-monthly

webinars through SONYMA University, developing content on topics which

reflect the feedback and educational needs of attendees and the SONYMA

Advisory Council. Since launching the effort in 2014, more than 3,700

attendees from our lender, nonprofit and realtor partners have participated in

web-based training on SONYMA programs. Additionally, SONYMA had a

continuing education course accredited through the New York State

Association of Realtors in 2017, and offered the course to approximately 200

realtors state-wide in 2018. SONYMA also offered three Regional Learning

Days, with a half day training for lenders and nonprofits and afternoon with

realtors. These events were attended by approximately 350 partners.

e. Work with the SONYMA Advisory Council in Gathering Insights and

Recommendations on Future Direction: Created in 2010, the Council helps

SONYMA maximize its effectiveness while simultaneously providing a forum

for knowledge-sharing and relationship building among different members of

SONYMA’s distribution and supply-networks. The Agency held two meetings

with the Advisory Council in 2018, including a roundtable session with council-

member guests and SONYMA staff members, as well as monthly subcommittee

meetings.

f. Continued Outreach Efforts to Industry Partners: In 2018, SONYMA

participated in 81 events across New York State with homeownership

counseling organizations, realtors, lenders, not-for profits, veterans groups,

community groups and others. The outreach efforts and collaboration in

planning events have deepened the Agency’s relationships with its partners in

the housing community and provided additional opportunities to promote

SONYMA products and services.

g. Growing out the enhanced Remodel New York Program (“Remodel

NY”): As the existing housing stock continues to age, many homebuyers are

faced with the need to complete renovations to properties they are purchasing.

This can be burdensome to first-time homebuyers adjusting to homeownership,

and can keep homebuyers from being able to purchase properties in need of

significant repair. In order to address this increasing need, SONYMA made a

number of enhancements to its Remodel NY program in 2015 and 2016. In

2016, the Agency hired a dedicated Renovation Loan Analyst to enable the

quick and efficient review of Remodel NY loans submitted pre- and post-

purchase. During 2018 SONYMA purchased approximately $4.3 mm in

Remodel NY loans, with another $2.6 mm in the pipeline for purchase in early

2019 up from $3.7 mm purchased and $2.4 mm in pipeline at the end of 2017

. The program continues to gain momentum and assist first time homebuyers

purchasing homes in need of repair.

h. Launching the Neighborhood Revitalization Program (NRP):

The SONYMA Neighborhood Revitalization Pilot Program was launched in 2016

using $22.6 million in JP Morgan settlement funds to finance the purchase and renovation

of foreclosed and abandoned properties for low-and-middle income New Yorkers and

assist in eliminating vacant and zombie properties in communities hard-hit by the

foreclosure crisis. The program features a SONYMA mortgage with a subsidized interest

rate and additional subsidy funds to purchase and renovate properties in several

communities throughout the state.

At the request of communities demonstrating NRP’s strategic fit with existing

local efforts to address vacant/abandoned homes, SONYMA further expanded the NRP

eligible counties in 2018 to include Albany, Broome, Dutchess, Erie, Onondaga, Orange,

and Schenectady Counties as well as all of Monroe and Rensselaer Counties, New York

City and Long Island. Strong partnerships with local governments, lenders, realtors and

experienced nonprofit housing agencies provide the network to locate properties and

borrowers who fit the program criteria, provide homeownership counseling and assist

borrowers in accessing additional sources of gap funding when needed.

Having taken some time to build the infrastructure to support the program and

expand its footprint, NRP is gaining momentum. Since inception SONYMA has

purchased 97 loans (37 in 2017 and 60 in 2018) totaling $27.4 million, and currently has

another 18 in its pipeline for an additional $3.5 million likely to close in early 2019. NRP

home purchases allow qualified low- and middle-income buyers to receive up to $20,000

in additional funds for home improvements with zero interest and no increase mortgage

payments through SONYMA.

i. Organizing the SONYMA Spruce Up Initiative: SONYMA Spruce Up is

an event in which SONYMA, local nonprofit partners, lenders, sponsors,

contractors and neighborhood associations partner to do a one-day exterior

clean-up of a targeted area. After a successful pilot event in the Sheridan

Hollow neighborhood in Albany with the assistance of the Affordable Housing

Partnership and the Sheridan Hollow Neighborhood Association in Fall 2016,

this pilot was continued with another four events in 2017 throughout New York

State (Buffalo, Newburgh, Troy and Brentwood) and four more events in 2018

(Rochester, Queens, Walden, and Central Islip). Volunteers completed exterior

repairs, such as repair/painting of stoops, planting trees, and cleaning up

sidewalks on over 250 homes, completed a total renovation of seven local parks,

eleven vacant homes, five vacant lots as well as the clean-up and painting of a

playground, and an outdoor classroom. Local lenders, community volunteers,

school civics clubs, several local nonprofits, realtors and SONYMA’s MI

partners both sponsored and contributed volunteers to complete the work.

There was radio and media coverage across all the local networks.

j. Buying an additional 172 delinquent mortgage notes through the

Community Restoration Fund: An additional purchase of 172 delinquent

notes in 2018 increased the number of delinquent notes purchased through

Community Restoration Fund to 570. Legislation was passed in the summer of

2016 to create the SONYMA Community Restoration Fund (CRF). This fund

was intended to be a vehicle through which SONYMA can purchase delinquent

notes from various sources in order to help borrowers modify their loans and

remain in their homes. Since inception, the SONYMA CRF, in partnership with

New Jersey Community Capital, a nonprofit organization specializing in this

work, leveraged $10.5 million in settlement dollars against $112 million in

private financing to purchase the mortgages for 570 homes in a strategic effort

to bring owners out of foreclosure and keep the homes from abandonment. The

570 homes in the CRF program are in 37 of the State’s 62 counties, with the

majority of the homes located on Long Island and in the Mid-Hudson Valley.

5) SONYMA’s accomplishments as they relate to MWBE goals:

As stated above, 589 (approximately 33%) of the 1,813 loans SONYMA purchased

in 2018 were made to minority households. SONYMA has continued to contract

with MWBE vendors whenever possible for advertising, promotional materials and

with our consultant, Doug Dylla.

STATE OF NEW YORK MORTGAGE AGENCY

MORTGAGE INSURANCE FUND MEASUREMENTS

For the year ending December 31, 2018, the Mortgage Insurance Fund achieved the

following, in accordance with the measurements outlined in the mission statement for that

year.

Number of loans, units and dollar amount of new commitments to insure both

Single Family and Multifamily

1) The MIF insured 202 SF loans with 229 units for a total of $47,648,889 in loan

amount. The MIF also issued new commitments to insure 87 Project loans with

9,812 affordable units for a total of $565,512,858 in loan amount. This was a

20.4% increase over the $469,642,172 in loan amount in 2017. The Insurance

Fund provided pool insurance for 1,813 loans purchased by SONYMA Single

Family with a loan amount of $370,726,451 and provided primary insurance

for loans that were rejected by Genworth and other PMI companies generally

due to low FICO scores.

The MIF’s ratings and risk to capital ratios

Moody’s rating of the MIF’s Project Pool Insurance Account and Single Family

Insurance Account remained unchanged at Aa1 and Aa1 with a negative outlook,

respectively. Fitch’s rating of the Project Pool Insurance Account and Single

Family Insurance Account remained unchanged at AA- and AA+, respectively.

As of 12/31/16 As of 12/31/17 As of 12/31/18

PIF

No. of loans

990 1,010 1,027

$ Amount

$3,230,421,240 $3,459,219,390 $3,699,845,834

Units

91,926 96,931 100,573

Commitments

No. of loans

252 254 258

$ Amount

$1,554,583,352 $1,649,560,579 $1,738,459,466

Units

25,573 24,653 27,510

For the 12

months ended

12/31/16

For the 12

months ended

12/31/17

For the 12

months ended

12/31/18

New PIF

No. of loans

73 74 58

$ Amount

$360,100,716 $352,785,905 $334,356,516

Units

6,965 6,918 5,004

New

Commitments

No. of loans

76 83 87

$ Amount

$507,250,536 $469,642,172 $565,512,858

Units

7,241 6,099 9,812

Evidence of advancement of Fair Housing goals:

Expanding Access to High Opportunity Areas

In 2018, FEHO worked across HCR to expand two key initiatives that promote access to

opportunity for families in New York. Moving low-income families to opportunity areas

is an effective way to end the intergenerational cycle of poverty. Specifically, social

science studies show that children under the age of 13 who moved from high poverty to

low poverty neighborhoods were more likely to attend college, had better health outcomes

and earned more money as adults.

A. LIHTC Set-Aside for High Opportunity Area Projects

In the 2018 Multifamily Programs Unified Funding RFP, FEHO continued its collaboration

with Policy and Strategic Planning and F&D on a LIHTC set-aside for “Housing

Opportunity Projects.” Up to $5 million in 9% tax credits are available for family projects

located in a census tract with less than 10% poverty and served by a “high- or moderate-

proficiency school,” based upon New York State Department of Education data. As in

2017, in order to reduce a potential barrier to developer participation in this new initiative,

HCR included within the Unified Funding RFP a list of 1,449 census tracts eligible for

“High Opportunity Area Projects.”

B. Mobility Counseling

HCR’s mobility counseling program assists low-income families with Section 8 Housing

Choice Vouchers secure affordable housing in low-poverty areas of Westchester County

that are served by high performing schools. Throughout 2018, FEHO worked with its

mobility counseling program administrator to refine and expand mobility counseling in

Westchester County.

Educating Tenants, Housing Providers, and HCR Staff About Fair Housing

Rights

In 2018, FEHO conducted a number of internal and external trainings and educational

events on fair housing rights. In January 2018, FEHO and the Division of Human Rights

conducted a comprehensive four-hour fair housing Continuing Legal Education session for

HCR and DHR attorneys and staff. In August 2018, FEHO conducted an additional

Continuing Legal Education session for HCR attorneys. Over the course of the year, FEHO

staff also coordinated a training on the housing rights of individuals with disabilities,

conducted by an attorney at the Division of Human Rights, and open to HCR attorneys and

staff. FEHO also conducted two internal training sessions to HCR staff members on the

Violence Against Women Act (VAWA) Reauthorization Act of 2013 and HCR policies

pursuant to it. This was followed by two external training sessions targeted to HCR

awardees, managing agents and housing providers.

In addition to the above training sessions, FEHO staff members also conducted three fair

housing trainings to Section 8 Local Administrators statewide.

Finally, on April 26, 2018, FEHO and DHR held a conference in celebration of the 50th

Anniversary of the passage of the Fair Housing Act. Held at the National Museum of the

American Indian, and attended by approximately 275 fair housing advocates, stakeholders

and attorneys, the conference featured panels on topics ranging from the history, impact

and continued importance of the Fair Housing Act, to housing rights of individuals with

disabilities, to providing access to housing for vulnerable and at-risk individuals and

creating inclusive communities in the 21st Century.

In 2019, FEHO intends to offer several fair housing training sessions to developers across

New York State, in addition to periodic fair housing training to HCR staff members and

attorneys to ensure compliance with fair housing laws, and agency policies and procedures.

Protecting Foreign-Born Tenants and the Rights of Families with Immigrant

Members

At Governor Cuomo’s direction, FEHO, in conjunction with the Division of Human Rights

(DHR) and the Office for New Americans (ONA), continued its work to educate and

protect the rights of foreign-born tenants. In 2018, FEHO conducted and attended outreach

and education events in collaboration with the Arab-American Association of New York

and P.A.L.A.N.T.E. to educate foreign-born New Yorkers on their housing rights under the

New York State law.

In December 2018, in response to the proposed federal rule regarding “Inadmissibility on

Public Charge Grounds,” FEHO drafted and submitted a comment decrying the proposed

rule change and expressing HCR’s concerns with the proposal. Under existing federal law,

an individual may only be considered a public charge if he or she receives certain cash

benefits; the proposed rule would extend this analysis to a broad array of federal programs,

including Section 8 Housing Choice Vouchers, Section 8 Project-Based Rental Assistance,

and public housing. In its comment, HCR expresses concern that such a change would

negatively impact New York State families with foreign-born members, causing a chilling-

effect that would prevent some families from utilizing these housing programs. As a result,

the comment indicates, HCR fears that this will result in increased homelessness and

instability across New York. In 2019, FEHO will seek to continue its work in protecting

the rights of foreign-born tenants, and New York families with foreign-born members.

Working With Housing Advocates to Affirmatively Further Fair Housing

In 2018, FEHO attended two roundtables in Albany and New York City on the topic of

HCR’s Qualified Allocation Plan. These sessions were designed to engage developers,

stakeholders, fair housing advocates and HCR staff in a conversation around potential

amendments to the QAP. Additionally, in 2018, FEHO met twice with members of the

Regional Affordable and Fair Housing Roundtable to identify problematic fair housing

trends and address concerns. FEHO also participated in a roundtable on housing for

individuals with justice-involvement. Taken together, these conversations have informed

some of the policy, outreach and education conducted by HCR, including the urgency with

which HCR has advocated for legislation prohibiting source of income discrimination.

In July 2018, in response to a notice published in the Federal Register announcing the

withdrawal of the Assessment Tool for Local Governments (the “Assessment Tool”, used

by local jurisdictions in submitting their Assessment of Fair Housing, FEHO drafted and

submitted a comment letter opposing the change. The comment letter stated that the

withdrawal of the Assessment Tool was effectively a suspension of the Affirmatively

Furthering Fair Housing Rule, as, in its absence, local jurisdictions would only need to

certify that they had complied with their fair housing obligations by conducting an Analysis

of Impediments to Fair Housing Choice – a process that HUD and the United States

Government Accountability Office had previously found ineffective. In addition to the

comment letter, earlier in the year, New York State joined the National Fair Housing

Alliance et al v. Carson case, which attempted to block HUD from unnecessarily delaying

implementation of the Affirmatively Furthering Fair Housing Rule’s requirement for an

Assessment of Fair Housing. FEHO worked closely with the Attorney General’s office to

provide context for the lawsuit and to prepare an affidavit to the court on behalf of HCR

and Commissioner Visnauskas.

In addition, in November 2018, in response to an advanced notice of proposed federal

rulemaking that would reform the Community Reinvestment Act, FEHO drafted and

submitted a comment expressing concern with the proposed changes. As a landmark civil

rights law passed in response to a long national history of redlining, disinvestment and

discriminatory policies that served to systemically bar people of color and low-and

moderate-income communities from accessing housing, banking and credit opportunities,

the CRA must be strengthened and preserved rather than weakened. In 2019, FEHO will

stay apprised of any further proposed changes to the Community Reinvestment Act, and

will continue to comment on any proposed changes to federal rules that will frustrate efforts

to affirmatively further fair housing in New York State.

Expanding Oversight of Affirmative Fair Housing Marketing

In May 2018, FEHO unveiled new marketing plan review procedures which were designed

to simplify and expedite the marketing plan review and approval process for both HCR

staff and the development community. The amended process implements (1) a Fair

Housing Project Summary & Certification (“Short Form”), which is submitted and

approved as a condition of closing; (2) an Affirmative Fair Housing Marketing Plan

(“AFHMP Long Form”), which is submitted by the developer approximately 180 days

ahead of occupancy, or at 70% completion; and (3) an HCR Rider for projects that are

jointly funded with HPD/HDC, which streamlines the marketing process for projects that

are already being reviewed and approved by HPD. As part of this new policy

implementation, FEHO held a number of internal and external training sessions and

provides ongoing technical assistance to projects that require it.

Prior to the new marketing procedures in May 2018, FEHO reviewed and approved (56)

Affirmative Fair Housing Marketing Plans for DHCR/HTFC and HFA multifamily

projects. Under the new system, FEHO has approved sixty-two (62) Summary and

Certification Short Forms and three (3) AFHMP Long Forms. FEHO has also approved

five (5) HPD Riders for projects that are jointly funded with HPD.

Affirmative Fair Housing Marketing Plans memorialize the marketing strategies to be

undertaken by developers/sponsors in order to attract prospective renters regardless of their

protected status under fair housing laws and ensure compliance with fair housing

requirements and best practices. As such, the fair housing marketing plan policy and

procedures are revised as necessary to reflect changes in the law. For example, FEHO

most recently update the marketing plan guidelines as to the requirements under the federal

VAWA and HCR’s policy for assessing applicants from individuals with criminal records.

In the coming months, FEHO anticipates a further revision in the marketing plan policy

and procedures to reflect the new tenant selection policy for applicants to state funded

housing with poor credit or negative housing court histories (discussed in greater detail

below).

Through its review of marketing plans, FEHO is also able to collaborate with the Finance

& Development (F&D) unit to ensure projects’ compliance with fair housing laws and best

practices.

Increasing Access to Affordable Housing Developments

A. Fair Housing Compliance Monitoring

In 2018, FEHO continued to collaborate with AMU to meaningfully monitor fair housing

compliance among HCR-funded projects post lease-up. Utilizing a fair housing checklist,

AMU reviews fair housing policies related to, among other things, reasonable

accommodation policies, accessible and set-aside units, HCR’s policy for assessing

applicants with criminal convictions, and compliance with the Violence Against Women

Act. Through this checklist, AMU works with FEHO to resolve any potential fair housing

issues. FEHO continues to offer technical assistance to projects that need it, in order to

ensure that they are meeting their fair housing requirements.

B. Tenant Selection Policy for Individuals with Poor Credit or Negative Housing

Court History

In 2018, FEHO drafted a policy to be utilized by all HCR-projects to assess applicants with

poor credit or negative housing court history. The policy is designed to ensure that

individuals have meaningful access to housing opportunity, and will require housing

providers to individually assess applicants’ credit and housing court histories rather than

automatically deny applicants on the basis of a credit score. In 2019, FEHO will be

working with program staff to refine and finalize the policy ahead of implementation. Once

the policy is rolled out, to facilitate compliance, FEHO will schedule internal and external

trainings to educate HCR staff and supervised projects on the requirements of the policy.

Section 3 Match-up Sessions and Compliance

The Section 3 program requires that recipients of certain HUD funding provide job

training, employment, and contract opportunities to low- and very low-income residents in

connection with projects and activities in their neighborhoods. In 2018, FEHO hosted

Section 3 training for new/ current awardees followed by Match-Up sessions. We hosted

two successful Training/Match-Up sessions in the Mohawk Valley and the Capital Region

as well as a webinar. The training was designed to provide Section 3 compliance guidelines

and clarification for awardees and the Match-Up sessions were designed to provide

opportunities for HCR CDBG and HOME awardees and low-income Section 3 residents

and Business Concerns to meet and discuss employment and training opportunities.

Staff conducted numerous Section 3 technical assistance webinars to assist CDBG/HOME

awardees with meeting their hiring goals by helping them to develop best practices and

procedures. The webinars provided clarity of Section 3 requirements, resulting in

uniformity of all submitted reports. The webinars also assisted awardees experiencing

difficulties in their attempts to identify low-income Section 3 Residents/Business

Concerns.

FEHO’s Section 3 webpage was updated to include information and a link to GOSR’s job

portal. The linking between FEHO and GOSR was in response to several requests from

awardees over the past few years to provide a mechanism for them to post employment and

contracting opportunities and while allowing job and contract seekers opportunities to

search for potential jobs and contracts.

This year’s success is also evidenced by approximately 400 Section 3 registered businesses

on the HUD Business Registry website, an increase of over 300 since 2015.

New York State Affordable Housing Corporation

LIST OF MEASUREMENTS FOR CALENDAR YEAR 2018

1. Number of Low to Moderate Income Units Financed: 1,797

2. Regional Representation of Projects Financed:

a. In 2018, AHC awarded projects in all 10 geographic regions of New York

State, covering 46 of the State’s 62 counties.

b. Upstate/downstate distribution: approximately 32% of AHC’s 2018 grants

were awarded in projects located within New York City. 68% of AHC’s

grants were awarded throughout the rest of the state.

AHC 2018 AWARD SUMMARY*

Region # Projects Awarded

Units Awarded

Counties Awarded

Amount Awarded

% of Total Allocation

Western NY (Region 1) 13 319 5 $5,953,000

15.10%

Finger Lakes (Region 2) 10 271 7 $5,805,000

14.72%

Central NY (Region 3) 6 94 5 $2,564,800

6.50%

Southern Tier (Region 4) 2 40 7 $960,000

2.43%

Mohawk Valley (Region 5) 2 35 3 $750,000

1.90%

Capital (Region 6) 3 46 6 $1,170,000

2.97%

North Country (Region 7) 1 21 2 $250,000

0.63%

Mid-Hudson (Region 8) 5 67 4 $1,770,000

4.49%

Long Island (Region 9) 6 163 2 $4,400,000

11.16%

New York City (Region 10) 11 587 5 $12,645,000

32.07%

Statewide 5 154

$3,165,000

8.03%

Totals: 64 1,797 46 $ 39,432,800 100%

*The chart represents awards made in 2018. Please note: Depending on when the

applications were received, the awards were made from current and previous fiscal

year allocations and/or repayment funds.

3. AHC’s Fiscal Health:

a. AHC received a total allocation of $26,000,000 in State funds for its

Affordable Home Ownership Development Program for FY 2018-2019. As

in previous years, that amount will be split evenly and set aside as follows;

$13,000,000 for New York City projects and $13,000,000 for non-New

York City projects.

b. AHC released its Notice of Funding Availability in December of 2017.

AHC received 112 applications requesting more than $67 million in AHC

grant funds.

4. Introduction of Innovative Programs and Products:

a. As part of NYSHCR’s Office of Community Renewal (OCR), AHC

continues to operate in conjunction and cooperation with OCR’s other

programs that are geared toward community and economic development,

job creation and downtown revitalization, including the NYS Community

Development Block Grant Program (CDBG), NY Main Street Program

(NYMS), Neighborhood Stabilization Program (NSP), and the

Neighborhood and Rural Preservation programs (collectively, the "OCR

programs").

b. AHC continued to accept awards on a rolling basis and modified its grant

agreement structure to accommodate SONYMA Community Reinvestment

Fund (“CRF”) awards.

c. AHC is managing the Lake Ontario-St. Lawrence Seaway Flood Relief and

Recovery Grant Program.

5. Accomplishments as they relate to M/WBE goals:

a. In 2018, AHC continued to emphasize the importance of timely and

accurate submission of the required forms that comprise the Equal

Employment Opportunity Agreement (EEO) and the Minority and Women-

Owned Business Plan (M/WBE), in conjunction with the Office of Fair

Housing and Equal Opportunity.

b. AHC’s overall M/WBE participation was 78.26% on total procurement of

$11,500 in Certified Public Accountant Audit contracts entered during

2018.

MWBE Performance Measurements

Office of Economic Development

Accomplishments:

OEOPD continues to provide ongoing technical training to HCRs Finance and

Development units on MWBE & SDVOB participation and compliance. OEOPD’s

mission is to: analyze the agencies expenditures; identify areas for MWBE opportunity;

work with the various departments to create procurement strategies; identify the obstacles

the agencies may face in achieving the overall goal. Lastly, OEOPD is responsible for

monitoring and quarterly reporting to the Empire State Development Corporation and the

Office of General Services as well as the Executive Chamber. To further assist in these

efforts, enforcement mechanisms for non-compliance are outlined in each contract in the

Minority and Women-Owned Business Enterprise Utilization Agreement, Appendix II,

Section VII.

The OEOPD Director continues to participate as a member of all RFP/RFQ review

committees to advocate for direct contracting or subcontracting opportunities for MWBE

& SDVOB firms. For multi-state agency funded projects, OEOPD continues its efforts to

consolidate MWBE & SDVOB reporting.

The Economic Opportunity Corner on the agency website, links to HCR’s home page to

help MWBE & SDVOB firms find opportunities within the Agencies. The Economic

Opportunity Corner provides useful information and links to the ESD & OGS websites for

certification information. There are links to procurement opportunities; and information

on approved projects so MWBE & SDVOB firms are able to market their services directly

to developers and community groups. The site also has a listing of certified MWBEs who

have been engaged on Agency projects. OEOPD continues to outreach to non-certified

MWBE & SDVOB firms as identified during the review of utilization plans and quarterly

reports, to encourage them to become certified.

OEOPD created a Good Faith Efforts (GFE) Committee. This committee reviews the

efforts made by developers or grantees to meet their MWBE requirements. Upon review

of the GFE package, a choice of the following recommendations can be made to the

Agency’s Finance and Development unit: (a) request a waiver from the Executive

Chamber; (b) collect liquidated damages; and/or (c) bar the developer from doing business

for one year. To date, with the liquidated funds collected OEOPD has hired a consultant

to assist in the creation of a technical assistance program and the feasibility of a revolving

loan fund to assist minority developers and/or MWBE contractors.

To effectively monitor the MWBE utilization, expenditures are divided into three

categories: procurement, development and bond-related costs.

In Calendar Year 2018, the Agencies achievements were:

Total MWBE utilization: 36.83% Procurement – 72.42% Construction – 36.05% Bond

Related – 19.95%

In addition, this unit has assumed the responsibility of administering and monitoring the

Labor Standards for all federally funded projects, specifically Davis Bacon and prevailing

wage compliance.