NEW YORK CITY-Newly imposed changes in how financing is allocated for affordable housing developments by the state, including its 80/20 program, will make funding projects easier, local developers are saying.

Beginning this month, due to high demand tax-exempt bonds issued through its popular 80/20 program, which applies to projects with at least 20% affordable units, the state Division of Housing and Community Renewal is spreading the subsidy in smaller amounts over a larger number of projects. That change, combined with funding increases in many of the state's affordable housing programs, is creating a better climate in the affordable housing arena, according to Crain's New York Business.

"This is a very positive step and very welcome in the affordable housing community," says Martin Dunn, principal at Dunn Development Corp. "It will free up more tax-exempt bonds for affordable projects, and coupled with the expanded housing subsidies announced by Gov. Cuomo last week, we're going to see more affordable units in the coming years."

Richard Froehlich, acting president and general counsel of the city's Housing Development Corp., says the changes by the state will allow the city to spread its subsidy across a broader array of projects.

"Obviously, this is preferable as we were able to preserve our private activity volume cap and the accompanying low-income housing tax credits to apply to our affordable housing projects," Froehlich says. See story in Crain's New York Business.