The New York City Educational Construction Fund (ECF)
The NYC Educational Construction Fund's mandate it is to encourage comprehensive neighborhood development by constructing mixed-use real estate projects which feature new school facilities. Under this mandate the ECF boosts the capacity of the New York City Department of Education (DOE) to construct new facilities and improve current schools, thereby increasing the number of seats for the entire school system. The ECF was created by the New York State Legislature in 1967 and since that time has constructed projects that have added over 18,000 school seats, 4,500 units of housing and 1.2 million square feet of office space in New York City.
The ECF builds combined-occupancy structures on city-owned land conveyed to the ECF by the City of New York. The school facility portion of the mixed-use project is financed via the issuance of tax exempt bonds with a term of up to forty years. ECF uses ground rents, lease payments and/or tax equivalency payments from the non-school portion of projects to finance construction of its school facilities. Future revenues from the non-school portions of the development are used to pay the debt service of the school facility. Through these innovative public-private partnerships, ECF is able to allow the City of New York to accomplish more than it otherwise would be able to. And with this development opportunity, ECF is able to bring educational and economic opportunity to East Harlem, so that more children will have access to quality education leading to empowering employment, and more families will have access to safe and affordable housing.
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