Low-Income Affordable Marketplace Program (LAMP)
New York City
Total Annual Award
In November of 2014, HDC archived this program and created Extremely Low and Low-Income Affordability (ELLA), which builds on LAMP and adds deeper targeting for low income and increases homeless set aside units. Projects with LAMP funding are still governed by existing terms under LAMP. New projects should apply for ELLA. HDC provides both tax-exempt bond financing and subsidy for affordable housing projects in NYC. In the last calendar year (2014), HDC issued over $1 billion in tax exempt bonds and approximately $135 million in subsidy.
Tenant Eligibility Criteria
Households earning less than 60% of the area media income (AMI).
New construction, substantial rehabilitation and conversions of non-residential buildings for developments containing a minimum of 50 residential units. Tax-credit-eligible units must serve households earning 60% of the area median income (AMI) or below where either 1) 20% of the units are affordable to those earning 40% AMI or below, or 2) 20% of the units are set aside for homeless households.
Funding Award Details
LAMP 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.
First mortgage: Rates vary. See HDC's term sheet for details.
Second mortgage (the subsidy): A loan of up to $65,000 per unit, up to $15 million a project, provided at 1% interest. The loan payments are fixed and may be interest only. The two published rates are $55,000 per unit and $65,000 per unit. The former is for projects that have Project-Based Section 8 committed for the project and the latter is for units without a rental subsidy.
First mortgage: Permanent 30-year term with a 30-year amortization schedule.
Second mortgage: Permanent 30-year term with a 1% fixed interest rate.
The building must contain a minimum of 50 units.
LAMP projects require $1,000 per unit capitalized operating reserves. This amount is $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.
Homeless units are underwritten at 60% AMI, but a rental subsidy is required for all homeless units.
LAMP is occasionally used by supportive housing developers, most often for buildings that include units for families.
Developers are allowed to build LAMP-funded projects with greater than 20% homeless units, provided they have sufficient subsidy.
For More Information
See ELLA's term sheet.
110 William Street, 10th Floor
Last updated: 07/17/2018
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