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NYC Department of Housing Preservation & Development
Developers

Financing Tools
Preservation Participation Loan Program (PLP)
 
1106 Boynton Avenue in the Bronx
1106 Boynton Avenue in the Bronx
Before/After Rehabilitation Financed through PLP

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 households.

 

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. 

Building before renovation under Small Buildings Loan Program
Building after renovation under Small Buildings Loan Program
686 Washington Ave. in Brooklyn
Before/After Rehabilitation Financed through PLP

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 Stabilization system. 

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 number below. 

Phone Number: (212) 863-6408

 

 

    



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