New York City
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.
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.
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.
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.
- 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.
For More Information
Director of the Supportive Housing Loan Program
Division of Special Needs Housing
T: (212) 863-8009
Last updated: 08/27/2019