Low-Income Affordable Marketplace Program (LAMP)
Type
Capital
Source
New York City
Procurement Agency
New York City Housing Development Corporation (HDC)
Total Annual Award
While the vast majority of HDC financing goes to affordable housing, in 2005 HDC issued over $1.65 billion of financing for construction and preservation.
Eligible Populations
Households earning less than 60% of the area media income (AMI).
Eligible Projects
New construction, substantial rehabilitation and conversions of non-residential buildings for developments containing a minimum of 50 residential units. Tax-credit-eligible units must serve households earning 60% of the area median income (AMI) or below where either 1) 20% of the units are affordable to those earning 40% AMI or below, or 2) 20% of the units are set aside for homeless households.
Funding Award Details
LAMP combines a first mortgage, funded by tax-exempt bonds, with a second mortgage financed by HDC's corporate reserves, 4% As of Right Tax Credits and other subsidies.
Rate Details
First mortgage: Rates vary. See HDC's term sheet for details.
Second mortgage (the subsidy): A loan of up to $65,000 per unit, up to $15 million a project, provided at 1% interest. The loan payments are fixed and may be interest only. The two published rates are $55,000 per unit and $65,000 per unit. The former is for projects that have Project-Based Section 8 committed for the project and the latter is for units without a rental subsidy.
Term of Service/Length of Grant
First mortgage: Permanent 30-year term with a 30-year amortization schedule.
Second mortgage: Permanent 30-year term with a 1% fixed interest rate.
Limitations
The building must contain a minimum of 50 units.
LAMP projects require $1,000 per unit capitalized operating reserves. This amount is $1,500 for homeless units. Homeless units also require $2,500 per unit for social service reserves. All projects also include a replacement reserve of $250 per unit.
Homeless units are underwritten at 60% AMI, but a rental subsidy is required for all homeless units.
Network Notes
LAMP is occasionally used by supportive housing developers, most often for buildings that include units for families.
Developers are allowed to build LAMP-funded projects with greater than 20% homeless units, provided they have sufficient subsidy.
For More Information
See HDC's term sheet.
Contact
NYC HDC
Development Group
110 William Street, 10th Floor
(212) 227-9407
development@nychdc.com
Last updated: 09/01/2011
Did you know…
Supportive housing in San Francisco helped formerly homeless people reduce their use of emergency rooms by 58%.