New York City, Private
The New York CIty Acquisition Fund was created to address the obstacles to affordable housing development in New York City: the dearth of predevelopment loans, low loan-to-value ratios and high recourse levels. It features low-interest, low-recourse and quick-turnaround loans.
Non-profit, For-profit, and M/WBE Sponsors with successful track records in developing affordable and/or supportive housing are eligible to apply.
A maximum of $10 million is available for land acquisition and $20 million for acquisition of existing, occupied buildings.
The maximum loan term is 3 years plus up to two 6-month extensions at the Fund's discretion.
- Established in 2006, this funding stream holds over $150 million in collaborative funds from private grant foundations, major banks and financial institutions and public supporters like the Battery Park City Authority. It is managed by a group of private and public investment firms.
Awards are made for property acquisition, appraisal, environmental and soil assessment fees, zoning analysis, consultant fees and environmental remediation.
Interest rates are indexed to the prime rate but often vary. The initial end user rate is approximated at 5.75%, while the loan-to-value ratio for nonprofits is up to 130%. A minimum of 5% equity is to be paid at closing.
Loans require a soft commitment letter to provide construction or permanent financing from the NYC Department of Housing Preservation & Development (HPD), NYC Housing Development Corporation (HDC), NYS Department of Homes & Community Renewal (HCR), NYS Office of Mental Health (OMH) or a governmental agency approved by the fund.
The fund requires an appraisal and may order a Phase I Environmental Site Assessment Report to be completed by a pre-approved environmental consultant.
For More Information
See the Acquisition Fund's website.
Enterprise Community Loan Fund
1 Whitehall Street, 11th Floor
61 Broadway, Suite 2300
New York, NY 10006
Local Initiatives Support Corporation
501 Seventh Avenue, 6th Floor
New York, NY 10018
Low Income Investment Fund
350 Broadway, Suite 701
New York, NY 10013
Last updated: 08/30/2019