HPD’s Preservation Participation Loan Program (“PLP”) was created to
provide low-interest loans to private residential building owners for the
moderate or substantial rehabilitation of housing for low-to-moderate income
The program operates in conjunction
with a group of pre-qualified participating lenders identified on the PLP Term
Sheet found below. Borrowers are free to work
with the participating lender of their choice.
HPD provides 2nd mortgages in the form of City Capital or
Federal HOME funds. 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.
HPD and the lenders collaborate in underwriting the loan, and all
projects must meet HPD’s design and construction standards.
Projects are encouraged to apply for and utilize other funding sources,
such as Low Income Housing Tax Credits (LIHTC) and funds from the New York State
Department of Housing and Community Renewal.
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. Buildings are subject to
affordability and use restrictions through a 30-year Regulatory Agreement and
following rehabilitation all units are registered in the New York State Rent
For more information about loan terms and eligible applicants and uses,
please download the PLP
Term Sheet and contact Chris Dewees, Program Director, at the
Phone Number: (212) 863-6408