HFA 4% Tax Credits are source of equity for affordable housing projects across NYS.
Tenant Eligibility Criteria
- 4% credits are only available for units up to 60% of the area median income (AMI). It is expected that in 2019 NYS HFA will allow projects to include units up to 80% AMI, if a project is utilizing income averaging.
- May serve any low-income sub-population.
Nonprofit or for-profit developers are eligible for funding. Priority is given to nonprofit-developed project applications and to applications that propose projects that utilize state or city-owned land.
While there is no cap on the amount requested, per-unit costs must be in line with typical local rate structures.
Length of regulatory agreement varies based on the program used. The New Construction Program (NCP) requires a 30 year regulatory period, while the Supportive Housing Opportunity Program (SHOP) requires a 40-year regulatory period.
- 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.
- Office of Mental Health (OMH) capital and Medicaid Redesign Team (MRT) funding have been folded into HFA's portfolio. Developers can no longer access capital from OMH.
- NYC developers can also access 4% LIHTC through the New York City Housing Development Corporation (HDC).
For More Information
Vice President, Multifamily Finance - New Construction
New York State Homes and Community Renewal
Last updated: 11/01/2019