HFA 4% Low-Income Housing Tax Credits (LIHTC) are source of equity for affordable housing projects across New York State. These federal LIHTC are available “as-of-right” when paired with tax-exempt bond financing. HFA expects to fund the first mortgage loans for qualifying projects through the sale of new money tax-exempt private activity bonds. Eligible uses include new construction and preservation.
Tenant Eligibility Criteria
• Projects must meet Bond/LIHTC low-income set aside requirements:
- At least 20% of all the units reserved for very low-income households earning at or less than 50% AMI; or
- At least 40% (25% in NYC) of the units set aside for households earning less than 60% AMI.
• Projects must have at least 50% of all the units in the development set aside for households earning less than 60% of AMI (LIHTC units), inclusive of the Bond/LIHTC set aside.
Nonprofit or for-profit developers are eligible for financing.
While there is no cap on the amount requested, per-unit costs must be in line with typical local rate structure.
Expected permanent term of 30 years for first mortgages.
- 4% credits are available year-round in conjunction with the Multifamily Open Window application process.
- There are no per-unit limits on the 4% “as of right” credits and the state bonding authority is only limited by a bond volume cap.
- HFA matches 4% LIHTC with its Supportive Housing Opportunity Program to develop supportive housing projects.
- 4% LIHTC may not be blended with 9% LIHTC.
- NYC developers can also access 4% LIHTC through the New York City Housing Development Corporation (HDC).
For More Information
The HFA 4% LIHTC and bond financing term sheet is available here.
More on the 4% program can be found here.
New York State Homes and Community Renewal
641 Lexington Avenue, 4th Floor
New York, NY 10022
Last updated: 11/04/2022