NEP
enables neighborhood-based private property managers to own and manage clusters
of occupied and vacant City-owned buildings. By focusing on small, locally based
entrepreneurs, HPD is rebuilding local real estate capacity in addition to
insuring quality management and maintenance for the buildings. Entrepreneurs
apply to participate in the program through a Request for Qualifications (RFQ)
process. HPD and the Enterprise Foundation then evaluate respondents who have
passed minimum threshold requirements. Respondents with relevant experience who
meet additional selection criteria are chosen to participate in the program.
Buildings selected for NEP are sold to the Neighborhood Partnership Housing
Development Fund Corporation (NPHDFC), a subsidiary of the Enterprise
Foundation, for $1 each and then leased to the entrepreneurs. The properties are
eligible for Federal Low Income Housing Tax Credits (LIHTC) and local real
property tax abatements to reduce development and operating costs. Proceeds from
the sale of LIHTC provide for a portion of the capital needs, as well as the
operating and social service needs of the project.
The entrepreneurs plan and oversee the rehabilitation and design of the
buildings, screen and recommend general contractors, and obtain - with the
assistance of NPHDFC - a private construction loan for the rehabilitation work.
The entrepreneur is also partnered with a local not-for-profit entity that
assists with building stabilization and provides tenant support and training.
Operating subsidies flowing through the tax credits will keep rents affordable
for existing tenants. Construction financing is provided by commercial banks.
HPD provides permanent financing through a mix of City Capital and Federal HOME
funds at a cost of approximately $120,000 per unit.
Program Director: Jason Paukowits
For additional information on
NEP, please call (212) 863-5285
Supplementary Information:
