Release of the Nonprofit Ownership Term Sheet and the Shelter Acquisition and Predevelopment Fund
The Term Sheet for Long Term Shelter Contracts with Nonprofit Ownership outlines the terms, development guidelines and contract specifications of this long term shelter development model. DHS is excited to partner with nonprofits, developers, and financial institutions to develop strategies for financing that allows for nonprofit ownership and increases shelter capacity. This term sheet contains the requirements for DHS to commence negotiations on Nonprofit Ownership ("NPO") Contracts, which are long-term, multi-year DHS contracts with a rent payment that enables nonprofit shelter providers to secure financing to acquire, develop, and/or rehabilitate a shelter with nonprofit ownership.
Interested providers should contact the Division of Capacity Planning and Development, CPD with any proposed sites for consideration at CPDInquiries@dhs.nyc.gov.
To date, DHS has registered 17 of these contracts and is excited for these innovative projects, many of which incorporate a shelter and housing model in partnership with HPD, sustainable design and/or the rehabilitation of existing sites.
The New York Shelter Acquisition and Predevelopment Fund (the "Fund") combines $5 million in "first-loss" capital from New York City with $10 million in philanthropic, program-related investment capital arranged by SeaChange to provide short–term, below–market loans to nonprofits that are in negotiation with DHS to build, own and operate homeless shelters.
The Fund was established to enhance the supply of high-quality non profit owned purpose–built homeless shelters with long–term use restrictions by offering a source to pay for predevelopment and acquisition expenses that are required prior to obtaining a long–term DHS contract against which conventional long–term financing can be leveraged.
A shelter project must be awarded through the DHS OERFP process in order to qualify for this Fund.