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NYC Department of Housing Preservation & Development
Developers

Housing Finance Programs
Rehabilitation
New Partners Program

The New Partners Program provides loans to owners to renovate small buildings where a portion of the building is vacant, and units are in need of rehabilitation. The Program is especially focused on buildings with existing commercial tenantsand vacant residential space above.

Program Advantages:

  • Below market interest rates
  • Loan term of up to 30 years
  • Loan program allows owners to add to the building's value
  • Assistance in selecting and securing contractors and working with tenants
  • Free classes available in all areas of property management

Eligible Applicants:

  • For Profit and Not-for-profit owners
  • Principals must have acceptable credit (no pending collection actions, foreclosures, etc.)
Eligible Properties:
  • Owner occupied buildings with 1-4 units
  • Buildings with existing commercial tenants and 1-20 vacant residential units, including "taxpayer" buildings
  • Projects must be located in the Bronx, Brooklyn, Manhattan (north of East 96th Street and north of West 110th Street), Queens, or Staten Island
  • All taxes must be current at the time of closing
Eligible Rehab Activities:
  • Moderate or Gut Rehabilitation
  • Renovation costs in excess of $15,000 per unit
  • All necessary work to bring a building up to housing and building codes
Non-profit Participation:
  • In collaboration with the Program, nonprofit organizations will outreach to owners, and may assist in the development of rehabilitation plans and/or lease/manage residential units.
Program Requirements and Conditions:
  • Borrowers must demonstrate that a New Partners loan is necessary because private market financing is not available for the proposed rehabilitation project or is not sufficient to complete the necessary scope of rehabilitation work
  • Borrowers must agree to lease the rehabilitated units as affordable housing for tenants with incomes below 120% of Area Median Income and to maintain buildings with 3 or more residential units as rent stabilized units
  • For profit owners must contribute 10% of the project cost in equity
  • Not for profit owners must contribute 2% of the project cost in equity

PHONE NUMBER: (212) 863-6417

Download application for New Partners Program (in PDF)

Click here to learn about other building rehabilitation loans



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