HPD’s New Construction Participation Loan Program provides low-interest loans to construct housing for low- to moderate-income households. HPD provides up to $70,000 at 1% interest for City-owned property being acquired at a nominal cost, or $85,000 per unit at one percent interest for private sites. Combined with bank financing, the composite financing cost is below market.  Projects may qualify for extended 421-a or 420-c tax benefits for new construction projects.

For more information about loan terms and eligible applicants, please download New Construction Participation Loan Program Term Sheet

PHONE NUMBER: (212) 863-6482

Click here to learn about other new construction loans