Status: Available
Type
Capital
Source
New York City
Procurement Agency
NYC HPD
Summary
HPD’s ELLA program funds the new construction of low-income multifamily rental projects.
Tenant Eligibility Criteria
Developers can choose the affordability tiers that arrive at the following average: 53-54% AMI.
Affordability tiers should also include:
- Minimum 15% of the units must serve formerly homeless households (may include up to 30% homeless set-aside)
- Minimum 80% of the units must serve households up to 80% AMI
- Maximum 20% of the units serving households between 90-100% AMI
- Minimum of 50% of units serving households earning up to 50% AMI, with at least 25% of units up to 30% AMI levels inclusive of units for formerly homeless households.
Eligible Applicants
In order to be eligible for Capital funds, a borrower must be a Housing Development Fund Corporation either alone or in partnership with non-profit entities, for-profit Developers, limited partnerships, corporations, trusts, joint ventures, or limited liability companies.
Amount
Subsidy per unit is based on the % of LIHTC units:
100% LIHTC: $122,500 per Unit
80% LIHTC: $137,500 per Unit
Term
Loan terms: 30 year minimum with an interest rate of up to 1% per annum plus a 0.25% servicing fee during construction. Loan terms vary by funding source.
Network Notes
- All projects must have at least 15% of the units set aside for formerly homeless households. Projects are encouraged to include supportive housing units or to create intergenerational housing by incorporating senior housing units. Projects with service contracts for supportive housing are encouraged to apply.
- Homeless set-aside units may utilize the Our Space program, which provides a limited amount of service funding for the project. For more information see the Our Space entry in the Network’s Funding Guide.
- Projects considering a homeless component with ESSHI or 15/15 must have at least 30 units under the contract to be considered.
- Projects with homeless set-aside units must submit a Social Service Plan and a proposed Social Service Provider for HPD approval prior to marketing and lease-up of the homeless set-aside units.
- Developer’s Fee: capped at 15% of improvement costs and 10% of acquisition for tax credit projects. See term sheet for more details.
- Land acquisition for private site: cost will be approved at the lesser of purchase price or appraised value.
For More Information
See HPD’s Term Sheet.
Contact
Multifamily New Construction Programs
100 Gold Street, Room 9K
mfnc@hpd.nyc.gov
Last updated: 03/12/2020