April 29, 2025

Program to support acquisition and rehab for distressed properties; ensure high-quality, affordable housing for more New Yorkers

Previewed this morning on PIX 11 News.

New York, New York -- The Neighborhood Pillars program is back.

Today, the Department of Housing Preservation and Development (HPD) is announcing the re-launch of the Neighborhood Pillars program.  The Neighborhood Pillars program provides financial resources, including construction and permanent financing, as well as property tax exemptions, to stabilize and preserve multifamily affordable housing. The program is another tool in the city’s toolbox aimed at addressing the dire need for affordable housing, while also working to improve housing quality and prevent the displacement of families and individuals from their neighborhood.

As part of the re-launch, the City and Restored Homes Development LLC will administer the Neighborhood Pillars Downpayment Assistance Fund, which will now allow Minority- and Women-Owned Business Enterprises (M/WBE), in addition to nonprofit purchasers, to access inexpensive financing – making the purchasing of multifamily homes more attainable. The Downpayment Fund provides low cost financing, addressing a financial hurdle these organizations can face in competing successfully in the market. These groups have played a crucial role in stabilizing and improving New York City neighborhoods for decades, and this program helps them to more easily do that vitally important work.

"Whether it's shattering affordable housing records two years in a row, passing historic zoning reforms, or investing nearly $25 billion over the next decade through our 10-Year Capital Plan, this is the most pro-housing administration in city history, full stop," said New York City Mayor Eric Adams. "With this relaunch of the Neighborhood Pillars program, we will continue those efforts, rehabilitating homes and creating more affordable housing for our city's working-class families. Thank you to HPD for your work on this critical program, and for adding an extra focus on M/WBEs to make sure that we don't just build more housing but that we do it in an equitable, inclusive way."

“The Neighborhood Pillars Program has been a pivotal program in this administration’s goal to ensure New Yorkers have quality affordable housing,” said Deputy Mayor for Housing, Economic Development, and Workforce Adolfo Carrión. “The relaunch and expansion of this program will continue to revitalize communities while giving operators of affordable housing the opportunity to uplift their local neighborhoods.”

“Neighborhood Pillars is an innovative tool designed to rehab and preserve existing buildings for low and moderate income households,” said Executive Director for Housing Leila Bozorg, “I applaud HPD for relaunching this program and working with urgency to stabilize buildings and neighborhoods in partnership with mission-driven organizations.”

Acting Commissioner of HPD Ahmed Tigani chimed in, "Too many New Yorkers are in buildings enduring physical and financial distress, and where the answer may require a change in ownership, we must be ready with the tools to help. Neighborhood Pillars is about giving mission driven housing partners more ways to step in, preserve affordability, and create homes for families who need them—especially those coming out of homelessness. By providing low-interest loans and tax exemptions, we’re making sure mission-driven organizations, M/WBEs, and neighborhood-based nonprofits have the resources to acquire and rehabilitate buildings that might otherwise be lost to speculation and displacement. This is how we fight to keep New York a city for everyone."

“For New Yorkers living in distressed buildings across the city, Neighborhood Pillars will once again offer a lifeline and a path to stability,” said NYC Council Member Pierina Sanchez, Chair of the Committee on Housing and Buildings. “After tireless organizing from housing advocates, the City Council’s Progressive Caucus, the Public Advocate, and the Comptroller’s Office, this program will finally re-launch after months of delay. We applaud HPD for taking thisbold step to preserve our city’s most vulnerable units so that more New Yorkers can live in safe, affordable housing. I look forward to working with HPD and our housing providers to make this program a success in its first year of re-launch, with a sincere hope that we can baseline funding for this critical program into the future.”

“Neighborhood Restore and its affiliate, Restored Homes Development LLC, congratulate the City on its relaunch of HPD’s Neighborhood Pillars Program.” said Salvatore D’Avola, Executive Director of Neighborhood Restore HDFC. “By focusing on the acquisition of physically and financially distressed multifamily properties, the City continues its commitment to prevent the displacement of families while preserving and increasing affordable housing opportunities throughout New York City.  We look forward to providing technical assistance to non-profit and M/WBE organizations seeking to participate in the Program and access down payment funds.”

“The relaunch of the Neighborhood Pillars program is an incredibly exciting development for preservation of our city's housing stock and resident stability," said Baaba Halm, Senior Vice President of Programs, Enterprise Community Partners. “Enterprise was proud to help design the initial iteration of Neighborhood Pillars and applaud the new program’s focus on revitalizing distressed assets and expanding the pool of qualifying organizations. The new Neighborhood Pillars will take today’s troubled properties and turn them into tomorrow’s places of pride for New Yorkers all across the city. Congratulations to HPD on today’s milestone.”

“Kudos to the team at HPD for relaunching the Neighborhood Pillars Program,” said Juan Barahona, Principal at SMJ Development. “At SMJ we're seeing more physical distress at rent stabilized properties in the marketplace than in the past and Pillars will be a valuable tool to arrest the deterioration of the affordable units that many New Yorkers call home.  We look forward to continuing to partner with the Agency to preserve this valuable housing stock.”

"NYC's affordable housing crisis is more acute than ever, and it is critical that we have tools and resources, like those provided through HPD's re-launched Neighborhood Pillars program to help preserve existing multi-family properties, where thousands of New Yorkers already live.  FAC knows first-hand from organizing tenants and building and preserving affordable housing in New York City, that nonprofits like FAC need to partner with the City to address the specific challenges facing distressed multi-family properties.  We look forward to working with the City's Department of Housing Preservation and Development on ensuring that this re-launched program is successful in preserving urgently needed affordable housing," said Michelle de la Uz, Executive Director, Fifth Avenue Committee.

"Neighborhood Pillars is critical for nonprofit housing organizations working to keep New Yorkers stably housed,” said Barika Williams, Executive Director of ANHD. “At a time when too many tenants are trapped in unsafe, neglected buildings, this program gives local, mission-driven groups the tools to step in, preserve affordability, and protect communities from displacement. ANHD applauds HPD and urges this administration and City Council’s continued investment in proven preservation solutions to ensure every New Yorker has a safe and secure place to call home."

What’s New:

• HPD will revamp Neighborhood Pillars to target multi-family buildings experiencing physical and/or financial distress for acquisition and renovations in order to improve housing quality and stability for existing residents.

• The Downpayment Assistance Fund is expanded to include access for M/WBEs in addition to non-profit entities. Eligible purchasers supported by HPD through the Neighborhood Pillars program will also have access to the Down Payment Assistance Fund operated by Restored Homes Development LLC, an entity affiliated with Neighborhood Restore HDFC.

Who is Eligible and for What Buildings:

• Eligible owners may include limited partnerships, corporations, joint ventures, limited liability companies, 501(c)(3) non-profit corporations, housing development corporations, and individual owners.

• Qualified non-profit borrowers and M/WBEs may also utilize the Down Payment Assistance Fund, operated by Restored Homes Development, LLC, for financial and technical assistance for acquiring properties through Pillars. Interested entities may apply to the Preservation Buyers RFQ.

• Multiple-dwellings with three or more units that are rent stabilized or not regulated and showing signs of physical or financial distress, exhibited by characteristics including high levels of housing code violations and participation in enforcement programs such as the Alternative Enforcement Program. 

• Properties that have current regulatory agreements with the City of New York, New York State, or the federal government restricting rents and/or household incomes are not eligible for the program.

Requirements for Borrower Developers:

• Borrowers must enter into a regulatory agreement for at least the term of the 30-year loan and/or  tax exemption and must commit to permanent affordability for no less than 30% of the units.

• Among other requirements, the agreement sets limits on allowable rents and initial household incomes and requires units to be permanently rent stabilized.

• All projects must set aside at least 20% of units for homeless households and individuals.

How to Apply:

• Interested applicants can submit a complete Preliminary Application with detailed information about the project characteristics and needs. Detailed submission instructions can be found on the HPD Neighborhood Pillars landing page (Neighborhood Pillars - HPD (nyc.gov))

• Qualified not-for-profit and M/WBE borrowers may be eligible to access the Neighborhood Pillars Down Payment Assistance Fund to use as a down payment/deposit on a contract to acquire properties as well as to cover limited pre-acquisition costs. To become an eligible borrower, visit the Preservation Buyer RFQ webpage.

The Nitty-Gritty:

• The Pillars program combines HPD financing with private funding to preserve affordable housing.

• If a borrowers’ acquisition of a property will occur prior to construction and/or permanent financing, the Borrower should plan to finance the acquisition. The initial financing may then be refinanced later on by a combination of private financing and HPD subsidy.

• The maximum subsidy is $380K per dwelling unit and depends on the other financing used, condition of the building, and the rents charged to residents.

• Projects are generally eligible, given that all requirements are met, for a full or partial residential property tax exemption through J-51 or Article XI tax benefit programs.

• Projects will be required to comply with the HPD Design Guidelines for Preservation.

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