NYC HPD Supportive Housing Loan Program (SHLP)

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Status: Available

Summary

HPD's SHLP is a source of capital subsidy for supportive housing development in NYC.

Tenant Eligibility Criteria

• 60% of units should be for formerly homeless, disabled individuals or homeless families with a disabled head-of-household.
• The remaining units can be rented to households in the community with low incomes. 
• Typically, all units must be rented to households earning up to 60% Area Median Income (AMI). With agency approval, income averaging may be used to incorporate units at 40% AMI and 80% AMI.

Eligible Applicants

Nonprofit organizations or joint ventures between nonprofit and for-profit entities. For projects developed by joint ventures, the majority of HDFC incorporators/directors/officers must be appointed by the nonprofit organization. Long-term project control and ownership must be with a nonprofit organization or entity wholly controlled by a nonprofit organization.

Amount

Awards are made on a rolling basis. SHLP provides up to:

• $125,000 per unit for projects using 9% tax credits; or
• $75,000 for those using 4% tax credits.

HPD's Division of Special Needs Housing will work with sponsors to secure low-income housing tax credits and gap financing. Eligible SHLP costs include land acquisition, construction, professional fees and other soft costs.

Term

The construction loan converts to a 30-year permanent loan. Interest rates vary by project, but a typical loan is AFR, deferred and accrued. The principal does not need to be repaid if the property remains affordable housing for homeless and disabled tenants for a 30-year period. 

Network Notes

• SHLP funds both new construction and rehab for supportive housing in New York City. A 50-unit minimum is preferred for New Construction. 
• Eligible SHLP costs include land acquisition, construction, professional fees and other soft costs.
• Applicants should have a service and operating award from a City, State, or Federal agency to provide supportive services. HPD prefers funding projects that have an award, or are in the process of applying for a services award, for NYC 15/15.
• A reserve of $3,500 per unit plus $3,000 per homeless unit should be capitalized as part of the developer fee.
• For single supportive units, only efficiency units are allowed.

Last updated: 08/27/2019

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