New York City Acquisition Fund
New York City, Private
Total Annual Award
Since 2006, 21 supportive housing projects received $59.4 million from the New York City Acquisition Fund.
Tenant Eligibility Criteria
Preservation, homeownership, low-income, mixed-income and supportive housing projects in New York City.
Funding Award Details
Established in 2006 for a 10-year term, this funding stream holds over $200 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.
A maximum of $10 million is available for land acquisition and $20 million for acquisition of existing, occupied buildings. 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. Equity may also be paid in cash, grants or subordinate debt. A 25% loan recourse also exists.
The maximum loan term is three years plus up to two 6-month extensions at the Fund's discretion.
Apart from environmental remediation, loan funds do not cover construction costs. 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.
The 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.
For the new opportunities it has created for affordable housing developers in New York City, the fund received an award for Innovation in American Government from the Harvard Kennedy School's Ash Center in 2008. Members have commented on the complicated nature of the application process, making it harder than advertised to quickly access acquisition funds. But comparatively, the fund offers financing much faster than typical government funding sources. Five supportive housing projects have received funds over the last four years.
For More Information
See the Acquisition Fund's website.
Enterprise Community Loan Fund
1 Whitehall Street, 11th Floor
Fax: (212) 262-9635
61 Broadway, Suite 2300
New York, NY 10006
(212) 986-2966 x290
Local Initiatives Support Corporation
501 Seventh Avenue, 6th Floor
New York, NY 10018
Fax: (212) 687-1396
Low Income Investment Fund
350 Broadway, Suite 701
New York, NY 10013
Fax: (212) 509-5593
Last updated: 02/02/2018
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