Department of Housing Preservation and Development (HPD) Commissioner Shaun Donovan announced today that the City is releasing the first Notice of Funding Availability (NOFA) for financing of affordable housing using $25 million of $130 million in revenues from the Battery Park City Authority (BPCA), which will be distributed through the New York City Housing Trust Fund (HTF). The $25 million in funding will be the first of approximately $70 million of the HTF used over the next three years for the new construction or substantial rehabilitation of developments targeting poor and middle class families not eligible for most affordable housing. Approved by Mayor Bloomberg, Governor Pataki and Comptroller Thompson on July 31, 2006, the $130 million HTF is unprecedented and will be used to create or preserve 4,300 affordable housing units over the next three years.
The HTF will also support large scale preservation and large scale land acquisition. The affordable housing built through the HTF will be part of Mayor Bloomberg’s New Housing Marketplace Plan to build and preserve 165,000 units of affordable housing over ten years. Three years into the plan, production is on schedule: in the last fiscal year alone, HPD and HDC funded 17,393 units of affordable housing.
“A little more than a month after the Battery Park City Authority voted to approve the Housing Trust Fund we are asking affordable housing developers to apply for funds,” said HPD Commissioner Shaun Donovan. “Affordable housing is one of New York’s most pressing needs. The Housing Trust Fund is another example of how we are using new and innovative sources of funding to build and preserve affordable housing. New York City’s success in reducing crime, reforming our schools, and building our economy is creating a major new challenge: providing affordable housing for all those who want to share in that success. The Mayor’s $7.5 billion New Housing Marketplace Plan will provide homes for 500,000 New Yorkers over ten years, more than the entire population of Atlanta.”
In order to be eligible for funding consideration, proposed projects must include a minimum of 20% of units affordable to hard-to-reach households. HTF subsidy amounts will range from $20,000 to $50,000 per unit. Hard-to-reach households are defined as those whose earnings are at or below 30% of area median income ($21,250 for a family of four), or between 61% and 80% of area median income ($43,250 to $56,700 for a family of four). Preference will be given to applicants that demonstrate project readiness, incorporate the most units affordable to hard-to-reach households with the least amount of subsidy, use HTF subsidy in conjunction with other HPD financing programs, and commit to more than the required period of affordability.
Applications began to be accepted on September 11, 2006. The application submission period will be open while funding is available. Proposals will be reviewed on a rolling basis and funding will be awarded on a rolling basis based on application completeness, feasibility, and extent to which proposed projects meet the competitive criteria and threshold requirements.
An electronic version of the NOFA and application are available for downloading on HPD's website (www.nyc.gov/hpd). Requests for hard copies can be made via email at firstname.lastname@example.org or mailed to: NYC Department of Housing Preservation and Development, NYC Housing Trust Fund, 100 Gold Street, Room 9P-8, New York, NY 10038.
Completed applications should be submitted electronically to email@example.com or mailed to: NYC Department of Housing Preservation and Development, NYC Housing Trust Fund, 100 Gold Street, Room 9P-8, New York, NY 10038.
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The New York City Department of Housing Preservation and Development's (HPD) mission is to promote quality housing and viable neighborhoods for New Yorkers. The department is the nation’s largest municipal housing development agency and is implementing Mayor Bloomberg’s New Housing Marketplace Plan to build and preserve 165,000 units of affordable housing over ten years. The New Housing Marketplace Plan is the largest municipal affordable housing effort in the nation’s history. HPD also encourages the preservation of affordable housing through education, outreach, loan programs and enforcement of housing quality standards