HPD has created its HUD Multifamily Preservation Loan Program to facilitate
workouts of troubled projects with existing mortgages from HUD, assistance
and/or use restrictions, that are at-risk of converting to market-rate or that
face similar challenges to financing acquisition or rehabilitation while
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.
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
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
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