Targeted Owner Options for Long-term Stability (TOOLS)

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As part of the Mayor’s Block by Block Housing Plan, HPD is launching the Targeted Owner Options for Long-term Stability (TOOLS) initiative to support the financial health of affordable housing while protecting long-term affordability, housing quality, and tenant stability.

The initiative offers the following strategies and resources to eligible projects:

To learn more about the TOOLS that are currently available and see if your project qualifies, click on the links above. Owners can also contact their assigned HPD Asset Manager or email HPDAssetMgmt@hpd.nyc.gov for more information.

Flexible Reserves and Violations Clearance

This time-limited program makes it easier for eligible owners in HPD’s Asset Management portfolio to request and use existing project reserves. The program streamlines HPD’s review process, expands the purposes for which reserve funds may be approved, and reduces certain compliance requirements.

Eligible Uses

Eligible uses for reserves include the current and expanded uses below. As part of the TOOLS initiative, all eligible uses will be processed in a streamlined manner.

Current Uses Expanded Uses
Current or projected operating shortfalls for a period of up to 12 months A principal payment made as part of a recasting of existing private debt
Outstanding operating expenses, such as water and sewer charges, utilities, insurance premiums, and mortgage payments as permitted by the Funding and Disbursement Agreement (FDA) and regulatory agreement A transfer of reserve funds from a higher performing project to a lower performing project, subject to LIHTC requirements
Building system repairs or replacement Operating expenses to be funded using capital or replacement reserves; and capital improvements to be funded with operating reserves
Repairs to correct underlying conditions that have resulted in Housing Maintenance Code violations Automatic disbursement of funds with LIHTC investor pre-approval documentation
Penalties associated with violations
Local Law 97 compliance work
Equity match required under the Weatherization Assistance Program
Discrete capital improvements for projects in HPD’s Year 15 development pipeline


HPD will review each request based on the proposed use, the project’s available reserves, minimum balance requirements, and the documentation submitted. HPD aims to provide a determination within 10 business days after receiving a complete request. Missing information or delays in providing requested documentation may extend the review and release timeline.

Submit a Reserve Request

Owners who are requesting streamlined approval of eligible reserve uses must submit requests through HPD’s online Flexible Reserves..

The form will provide the supporting documentation required for each type of request. HPD may request additional information while reviewing an application and will begin review once it has received a complete request.

Waiver of Existing Reserve Requirements

A project’s FDA or regulatory agreement may restrict how its reserves can be used. If an owner requests reserve funds for a purpose that is not permitted under the project’s existing agreement(s), the owner must also complete the Flexible Reserves waiver.

Owners must receive HPD approval before using reserve funds for a purpose that differs from the original terms.

Violation Clearance

To help expedite clearance of Housing Maintenance Code violations in buildings taking advantage of reserve release, HPD will coordinate building-wide inspections once repairs are complete. Improved coordination among owners, tenants, and HPD helps ensure that inspectors can access apartments and verify completed repairs.

Property Tax Relief (420-c Tax Exemptions)

This process will help existing properties financed with Low Income Housing Tax Credits (LIHTC) obtain a full 420-c property tax exemption when they currently receive a partial exemption or another tax benefit that will expire. HPD will work with owners to identify eligible properties and guide them through the application process.

The program will be launched in the coming months – come back again for updates.

Eviction Prevention and Rental Arrears Assistance

This program will provide support to address unpaid rent while helping tenants remain in their homes. This work focuses on connecting tenants to financial assistance and helping owners resolve arrears, reduce reliance on Housing Court, and stabilize building operations.

Check back for more info on this program in the coming months.

Technical Assistance

HPD is working with a number of partners to develop a program supporting owner and portfolio capacity. This program is in the early stages of raising resources. If you have interest in receiving technical assistance to optimize your housing operations and strengthen your portfolio. We will be providing an interest form on this website soon.