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NYC Down Payment Assistance Fund (DPAF)

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Status: Closed

Type

Pre-development/Acquisition

Source

New York City, Private

Procurement Agency

Private, NYC HPD

Summary

The Down Payment Assistance Fund provides loans for down payments on private sites for supportive housing development.

Tenant Eligibility Criteria

Projects should serve at least 30% formerly homeless special needs tenants.

Eligible Applicants

Eligible sponsors are pre-qualified, nonprofit developers of permanently supportive or mixed affordable and supportive housing projects in New York City. Through a New Construction Down Payment Assistance RFQ administered by HPD, nonprofit affordable housing developers with established track records and strong financials will be screened and pre-qualified.  

Priority projects will be those that intend to receive permanent financing through HPD’s Supportive Housing Loan Program (SHLP), as well as those financed by HPD’s Senior Affordable Rental Apartments (SARA) and Extremely Low and Low-Income Affordability (ELLA) programs, with a minimum 30% set-aside of supportive units in both of the latter two programs.

Amount

Down Payment Loans will be limited to the lesser of $1 million and 10% of the contracted purchase price. No more than one Down Payment Loan is permitted per developer until each loan is repaid. 

The rate of interest to DPAF borrowers is expected to be 3.0% fixed.  Interest payments will be deferred, accruing on a monthly basis and payable at loan maturity.

Term

The full principal amount will be due at the earlier of the closing date of an acquisition loan and the maturity date [not to exceed 12 months]. The closing of the acquisition loan will be conditioned on a soft take-out commitment from the New York City Department of Housing Preservation and Development (HPD) and the New York City Housing Development Corporation (HDC), or from other government take-out sources, as applicable. 

Network Notes

For More Information

A full term sheet and Notice of Funding Availability, describing priorities for funding are available on the DPAF website. The New Construction Down Payment RFQ (which will prequalify nonprofits to be eligible for DPAF loans) is available here.

Contact

Applicants should direct all communications and inquiries regarding this RFQ to HPD at: DownPaymentAssistanceRFQ@hpd.nyc.gov

Last updated: 08/30/2019

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