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NYC Department of Housing Preservation & Development
Developers

Housing Finance Programs
Rehabilitation
Small Buildings Loan Program

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 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

 



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