Home Repair and Preservation Financing

Supportive Preservation Program

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HPD’s Supportive Preservation Program (“SPP”) ensures the future financial and physical viability and preserves the long-term affordability of supportive housing projects.  

Eligible Buildings  

This program is for existing supportive housing projects located within New York City with existing social services contract(s) administered by a City or State government agency where that social service contract will be maintained after transaction closing. Sponsor may propose combining existing non-supportive housing properties with existing supportive housing properties into one new transaction. 

Note: Projects that will be creating new supportive housing units as part of the transaction are not eligible and should contact the Supportive Housing Loan Program (SHLP@hpd.nyc.gov). Creating new supportive housing includes, but is not limited to (1) physically constructing new units added to a social service contract, (2) adding existing units not currently covered under a social service contract to a social service contract, and (3) entering into a new form of social service contract for any units.  

Program Overview  

HPD’s Supportive Preservation Program (“SPP”) ensures the future financial and physical viability and preserves the long-term affordability of supportive housing properties.  

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.  

HPD assistance does not include modifications to social service contracts, including but not limited to service funding levels. Any requests pertaining to project social service contracts should be directed to the service contract administering or overseeing agency. 

This term sheet covers three (3) different ways to assist projects for preservation efforts and to ensure long-term financial and physical viability: 

  1. Providing full or partial tax exemptions 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, or 
  2. 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 
  3. Providing low-interest loans and tax exemptions to buildings that can leverage private debt. HPD’s city capital is gap financing lent in addition to construction and permanent financing sources. 

Resources  

  • Limited annual allocations of NYC 15/15 rental assistance are available to be awarded through a competitive Request for Proposals. Projects applying for assistance under this term sheet should request support from HPD program before applying for NYC 15/15 rental assistance. For more information about SPP’s criteria for reviewing such requests, please visit: NYC 15/15 SPP Support Priorities. 

How to Apply  

Please complete an Expression of Interest Form to indicate your interest in this program. As we review submissions, we will follow up if we have any questions or need clarification. For more information on program options and requirements, please consult the Preservation Finance page.