The program provides low-interest loans to preserve and rehabilitate housing for low to moderate-income households.  Moderate or substantial rehabilitation of existing multi-family projects are eligible uses and preserving the affordability of properties receiving HUD Section 8 Housing Assistance Payments is a priority. 

HPD provides City Capital or federal HOME funds at 1% interest.  Combined with bank or tax-exempt bond financing, the blended financing cost is below the market rate.  Projects may be eligible to apply in HPD’s competitive rounds of the Federal Low Income Housing Tax Credits (LIHTC) and other sources of financing.

During construction and after rehabilitation, real property taxes may be eligible for abatement.  Allowable income levels and rents depend on the type of subsidy used and on the existing affordability restrictions already in place.  Preservation projects may be subject to LIHTC and HUD affordability and use restrictions.  Following rehabilitation all units are registered in the New York State Rent Stabilization system. 

Eligible Applicants:

The program is open to for-profit and non-profit borrowers and limited partnerships, corporations, joint ventures, limited liability corporations or 501(c)(3) corporations are eligible.  The development team must have a demonstrated track record of successfully developing, marketing and managing comparable projects, or must form a joint venture with an entity that has such expertise. 

To qualify for a loan, the borrower must own the property or have a contract to purchase. A project’s physical conditions and finances must demonstrate a need for funds and HPD subsidy may only be used for hard costs and eligible soft costs.

To download HPD/HUD Multifamily Loan Program click here.  For more information about loan terms and eligible applicants and uses, please contact Maixuan Phan, Program Director, at the number below:

Phone Number: (212) 863-8497