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NYC Department of Housing Preservation & Development
Homebuyers

Update on 203(k) Buildings

For prospective renters and homebuyers
As apartments and owner-occupied homes become available for rent and sale, they will be advertised in a major city daily newspaper, a community newspaper, and on this web site.

For prospective developers
HPD issued a Request for Qualifications on August 5, 2002. It is available on our rfp/rfq page.

More about 203(k)
In January, 2002, the U.S. Department of Housing and Urban Development (HUD) and the City of New York's Department of Housing Preservation and Development (HPD) entered into an agreement to rehabilitate more than 500 HUD residential properties to provide homeownership and rental opportunities citywide. These properties were acquired through the foreclosure of federally-insured 203(k) mortgages and will be sold to both non-profit and for-profit developers though a competitive process. The developers will complete the properties' rehabilitation.

The agreement forged a plan using models of existing HPD programs that have successfully developed hundreds of thousands of homes and apartments throughout the city.

Key components of the plan include:

  • HUD and HPD will identify developers to repair 2,400 dwelling units. Rehabilitation for the first round of buildings is expected to begin in summer, 2002 and continue in subsequent rounds over the next five years;
  • All existing legal tenants of 203(k) buildings will be given the opportunity to return to affordable rehabilitated housing units.
  • HUD will commit $130 million in development funds and $7.7 million in anticipated sales proceeds to fully rehabilitate the properties to meet New York City's housing code;
  • HPD will leverage $30 million in private sector development funds. The City also intends to provide $95 million in tax abatements to purchasers and developers;
  • The City will provide federally-funded rental assistance for families who qualify; and,
  • HUD and HPD will use existing City housing programs to revitalize the homes and convey them to qualified non-profit and for-profit owners. For the buildings that are currently occupied, HPD will use Neighborhood Homes, the Neighborhood Redevelopment Program, and the Neighborhood Entrepreneurs Program. For buildings that are currently vacant, HPD will use Homeworks and Storeworks. HPD will use the same disposition criteria it uses for other city-owned properties, such as building size, location, and occupancy status.


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