Status: Available
Type
Capital
Source
New York City
Procurement Agency
NYC HPD
Summary
HPD’s Senior Affordable Rental Apartments (SARA) Program provides financing to support the construction and renovation of affordable housing for seniors, 62+ years in age, with low incomes.
Tenant Eligibility Criteria
Low income seniors above 62 years in age. Seniors may have incomes up to 60% AMI, though projects may include a tier of units affordable to those earning between 61% - 90% AMI. 30% of the units must be reserved for homeless seniors referred by a City or State agency.
Eligible Applicants
Nonprofit, for-profit developers or joint ventures with experience in developing housing for low-income seniors.
Amount
SARA provides up to $75,000 per unit. Lower subsidy requests will increase project competitiveness.
The interest rate is 1% per annum plus 0.25% servicing fee during construction. HPD may reduce this to leverage additional private financing.
Term
The regulatory perod is construction period plus a minimum of 30 years post-conversion. HPD 9% tax credit Qualified Allocation Plan (QAP) requires a regulatory agreement of 60 years.
Network Notes
- The majority of projects are funded with federal HOME funds requiring Davis-Bacon Prevailing Wages and Section 3 hiring protocols. SARA funds may be used in conjunction with 4% and 9% Low Income Housing Tax Credits and other loan and subsidy sources.
- A 50-unit minimum is preferred. Projects may include studios (maximum size 400 sq ft) and 1 bedroom apartments (maximum 650 sq ft).
- If a provider has a service contract, services would extend to all residents of the building.
- When service contracts are not available to fund supportive services, homeless units may be underwritten at tax credit rent levels, and additional income generated by rental assistance contracts on those units may be used to fund supportive services.
- Providers can also apply to the HRA Senior Affordable Housing Tenant Services RFP to serve homeless tenants in the building. This program provides $5,000 per homeless unit for light-touch services.
For More Information
For more information, see HPD’s Term Sheet
Contact
Senior Affordable Rental Apartments (SARA) Program
Division of Special Needs Housing
NYC Department of Housing Preservation & Development
SARA@hpd.nyc.gov
Last updated: 08/03/2021