LIHTC Preservation (Year 15) Program

HPD’s Low Income Housing Tax Credit Portfolio Preservation (“Year 15”) Program ensures the future financial and physical viability and preserves the long-term affordability of Low-Income Housing Tax Credit (“tax credit”) properties.

Eligible Buildings

This program is for New York City or New York State existing LIHTC properties (4% and 9% including but not limited to projects in HPD’s existing portfolio) sponsors may combine non-tax credit properties with existing tax credit properties into one new transaction.

Projects that previously received LIHTC from any source and is seeking a loan and/or a tax exemption from HPD.

Program Overview

The program assesses the needs of each project and develops a long-term preservation strategy to address the projects’ financial and physical needs. HPD assistance may include residential real estate tax exemptions, below-market loans, and/or extensions or modifications of existing HPD mortgages to induce conventional financing for preservation efforts and ensure long term financial stability.

This term sheet covers three (3) different ways to assist projects:

Providing full or partial tax exemptions for a term of up to 40 or 60 years, depending on the type of tax exemption for multifamily housing where physical needs can be addressed without an HPD loan. Non-HPD governmental sources of funding may be used in conjunction with the tax exemption,
Providing low-interest loans and tax exemptions to buildings that cannot leverage private debt to finance rehabilitation work, to ensure the physical health of buildings, preserve safe affordable housing for low- and moderate-income households, and reduce building operating expenses, or
Providing low-interest loans and tax exemptions to rehabilitate privately owned housing for low- to moderate-income households. HPD’s city capital is gap financing lent in addition to construction and permanent financing sources provided by, but not limited to private institutional lenders, New York City Housing Development Corporation (HDC) programs and New York State programs.

Resources

How to Apply

Thank you for your interest in the LIHTC Preservation (Year 15) Program. We are sorry to inform you we currently have limited staff capacity and a significant backlog of projects. As a result, the assignment of a project manager can take up to one year. Please submit a complete Preliminary Application with detailed information about the project characteristics and needs. This application will allow us to understand the needs of your project, and we will contact you when we are able to assign a project manager. Thank you for your interest and we look forward to working with you.