New York City Acquisition Fund

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Status: Available

Summary

The New York CIty Acquisition Fund was created to address the obstacles to affordable housing development in New York City: the dearth of predevelopment loans, low loan-to-value ratios and high recourse levels. It features low-interest, low-recourse and quick-turnaround loans.

Eligible Applicants

Non-profit, For-profit, and M/WBE Sponsors with successful track records in developing affordable and/or supportive housing are eligible to apply.

Amount

A maximum of $10 million is available for land acquisition and $20 million for acquisition of existing, occupied buildings.

Term

The maximum loan term is 3 years plus up to two 6-month extensions at the Fund's discretion. 

Network Notes

• Established in 2006, this funding stream holds over $150 million in collaborative funds from private grant foundations, major banks and financial institutions and public supporters like the Battery Park City Authority. It is managed by a group of private and public investment firms.

• Awards are made for property acquisition, appraisal, environmental and soil assessment fees, zoning analysis, consultant fees and environmental remediation. 

• Interest rates are indexed to the prime rate but often vary. The initial end user rate is approximated at 5.75%, while the loan-to-value ratio for nonprofits is up to 130%. A minimum of 5% equity is to be paid at closing.

• Loans require a soft commitment letter to provide construction or permanent financing from the NYC Department of Housing Preservation & Development (HPD), NYC Housing Development Corporation (HDC), NYS Department of Homes & Community Renewal (HCR), NYS Office of Mental Health (OMH) or a governmental agency approved by the fund.

• The fund requires an appraisal and may order a Phase I Environmental Site Assessment Report to be completed by a pre-approved environmental consultant. 

Last updated: 08/30/2019

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