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HDC Extremely Low and Low Income Affordability (ELLA)

Status

Available

Type

Capital

Source

New York City

Procurement Agency

NYC HDC

Total Annual Award

HDC provides both tax-exempt bond financing and subsidy for affordable housing projects in NYC. In the last fiscal year, HDC issued approximately $1.6 billion in tax-exempt bonds.

Tenant Eligibility Criteria

Option 1:

  • 10% of the units serving formerly homeless households,
  • 10% of the units serving households up to 30% of AMI,
  • 10% of the units serving households up to 40% of AMI,
  • 10% of the units serving households up to 50% of AMI,
  • (Optional): up to 30% of the units with rents affordable to households earning 70%- 100% of AMI, and
  • Remaining units serving households up to 60% of AMI.

Option 2:

  • 30% of the units serving formerly homeless households with a rental subsidy,
  • 5% of the units serving households up to 40% of AMI,
  • 5% of the units serving households up to 50% of AMI,
  • (Optional): up to 30% of the units with rents affordable to households earning 70% - 100% of AMI, and
  • Remaining units serving households up to 60% of AMI.

Eligible Applicants

  • New construction, substantial rehabilitation and conversions of non-residential buildings on an as-of-right basis for developments containing a minimum of 100 residential units. 
  • Smaller developments with a minimum of 50 units may be considered on a case-by-case basis. 

Funding Award Details

ELLA combines a first mortgage, funded by tax-exempt bonds, with a second mortgage financed by HDC's corporate reserves, 4% As of Right Tax Credits and other subsidies. 

Amount Details

First mortgage (debt):

  • During construction, tax-exempt bonds subject to new private activity bond volume-cap must fund at least 50% of the aggregate basis of the project.
  • Loan to Value (LTV) max 80%

Second Mortgage (subsidy):

Not to exceed $15 million per project

  1. Up to $55,000 per Project Based Section 8 Unit or other rental subsidy unit (includes units with NYC 15/15 rental assistance and likely some ESSHI projects); OR
  2. Up to $65,000 per unit without rental subsidy, based on the requirements determined by HDC.

Term

  • First mortgage: Permanent 30-year term with a 30-year amortization schedule.
  • Second mortgage: Permanent 30-year term with a 1% fixed interest rate.

Network Notes

  • ELLA projects require $1,000 per unit capitalized operating reserves, or $1,500 for homeless units. Homeless units also require $2,500 per unit for social service reserves. All projects also include a replacement reserve of $250 per unit.
  • A social service plan is required for all homeless units, which must be approved by HDC and HPD.  Both nonprofit, for profit and joint ventures may submit a service plan. The service plan is not required until the project is almost complete, and at a minimum the plan should include tenant referrals to the appropriate services in an effort to ensure the stability of this population.
  • As of December 2014, HDC phased out the Low-Income Affordable Marketplace Program (LAMP) and replaced it with ELLA.  Historically, LAMP was used occasionally by supportive housing developers, most commonly for buildings which include units for families. Aligning their priorities with the Mayor as outlined in the Housing New York Plan, ELLA has deeper targeting for very low incomes and larger required homeless set-asides than under LAMP.
  • Supportive projects can utilize ELLA. Note that the second mortgage subsidy will likely be reduced for supportive projects due to rental assistance.
  • ELLA can be used in combination with HPD ELLA, HPD SHLP, HPD SARA, or HCR programs

For More Information

See HDC’s Term Sheet

Anthony R. Richardson

Senior Vice President

212.227.9479

arichardson@nychdc.com

Last updated: 09/04/2018

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