Low Income Program (LIP)
Type
Capital
Source
New York City
Procurement Agency
New York City Department of Housing Preservation and Development (HPD)
Total Annual Award
The proposed budget for fiscal year 2012 is $204 million.
Eligible Populations
Households earning less than 60% of the area media income (AMI). When other funding streams are utilized, projects may include a tier of units for households making between 61% and 90% AMI.
Eligible Projects
The borrower must be a Housing Development Fund Corporation (HDFC). Projects must serve households earning 60% AMI or below where either 1) 20% of the units are affordable to those earning 40% AMI or 2) 20% of the units are set-aside for homeless households.
Funding Award Details
Subsidy amounts vary depending on the affordability of the units and whether the site is City-owned, privately-owned or funded with HOME dollars.
Rate Details
Maximum LIP subsidies range from $50,000 to $70,000 per unit.
Term of Service/Length of Grant
30 years.
Limitations
Projects that opt for the 20% set-aside of homeless units must include minimum reserves of $1,500 per homeless unit for rent-up and $2,500 per homeless unit for social services. Homeless referrals must come from NYC Department of Homeless Services (unless HPD approves an exception).
Homeless units are set at tax credit rent levels. However, Section 8 vouchers can be used.
As with all new HPD construction projects, LIP-funded projects must achieve Green Communities Certification.
Network Notes
NY/NY III subsidy has been used to fund the operating and service costs for the 20% set-aside of homeless units. In these cases, developers partnered with a social service provider in posession of a Department of Health and Mental Hygeine (DOHMH) NY/NY III commitment, to manage and provide services for the 20% homeless set-aside. For more information on these projects, email Nicole Branca at the Network.
For More Information
See HPD's term sheet.
Contact
NYC HPD
Susan Kensky
LIP Director
100 Gold Street, Room 9I5
(212) 863-6482
kenskys@hpd.nyc.gov
Last updated: 09/15/2011
Did you know…
At least 8 studies nationwide show that supportive housing significantly reduces homeless people’s use of hospitals.