Small Buildings Loan Program
The Small Buildings Loan Program provides loans for the moderate-to-gut-rehabilitation of buildings containing between one and twenty units. Properties must be at least 50% residential and must be privately owned. City Capital funds, loaned at 1% interest with a thirty year term, and/or Federal HOME Grant funds are combined with bank financing to produce a below market interest rate loan.
Eligible Applicants:
- For Profit owners, Not- for-profit owners, and homeowners
- Principals must have acceptable credit (no pending collection actions, foreclosures, etc.)
Eligible Properties:
- 1 to 20 units (includes owner occupied 1-4 unit properties)
- SROs
- At least 50% Residential
- Privately owned (developer may have building in contract of sale)
- All taxes must be current at the time of closing
Eligible Rehab Activities:
- Moderate or Gut Rehabilitation, vacant or occupied
- Generally in excess of $15,000 per unit
- All necessary work to bring a building up to housing and building codes
- Commercial space (envelope only)
Financing:
- City Funding is blended with private financing
- City uses City Capital funds (1% with 30 year term) and/ or Federal HOME Grant Funds
Program Requirements and Conditions:
- For-profit owners must contribute 10% of project cost in equity
- Not-for-profit owners must contribute 2% of project cost in equity
- Apartments in buildings with 3 or more units are placed under the NYS Rent Stabilization system
- Rents are set at market rate
- Real property taxes may be eligible for abatement through the J-51 program, or for one and two unit buildings, through the 421-b program
PHONE NUMBER: (212) 863-6447
Download application for Small Buildings Loan Program (in PDF)
Click here to learn about other building rehabilitation loans
