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Supportive Housing Opportunity Program (SHOP)

Status

Available

Type

Capital

Source

State

Procurement Agency

NYS HCR

Total Annual Award

Up to $200 million is available in SFY 2018-19 through HCR's Multifamily Open Window RFP. See the SHOP term sheet for additional details. Approximately $45 million in SHOP funds are also available through the HCR's Unified Funding RFP. 

Tenant Eligibility Criteria

The eligible target populations are families, individuals and/or young adults who are both homeless and who are identified as having an unmet housing need as determined by the CoC or local planning entity or through other supplemental local, state and federal data, and have one or more disabling conditions or other life challenges, including:

• Serious mental illness;
• Substance use disorder;
• Individuals diagnosed with HIV;
• Victims/Survivors of domestic violence;
• Military service with disabilities (including veterans with other than honorable discharge);
• Chronic homelessness (including families, and individuals experiencing street homelessness or long-term shelter stays);
• Youth / young adults who left foster care within the prior five years and who were in foster care at or over age 16;
• Homeless young adults between 18 and 25 years old;
• Adults, youth or young adults reentering the community from incarceration or juvenile justice placement, particularly those with disabling conditions;
• Frail or disabled seniors

Definition of Homeless: In order to be considered homeless for the purposes of this RFP, an individual must meet one of the following criteria:

(1) an un-domiciled person (whether alone or as a member of a family) who is unable to secure permanent and stable housing without special assistance. This includes those who are inappropriately housed in an institutional facility and can safely live in the community and those who are at risk of homelessness,

(2) a youth or young adult who left foster care within the prior five years and who was in foster care at or over age 16, and who is without permanent and stable housing,

(3) an adult or young adult reentering the community from incarceration or juvenile justice placement, who was released or discharged, and who is without permanent and stable housing, or

(4) a young adult between the ages of 18 and 25 years of age without a permanent residence.

Eligible Applicants

SHOP provides financing assistance for site acquisition, hard costs and related soft costs associated with the new construction of or the adaptive reuse of a non-residential property to affordable integrated supportive housing with on-site social services. Financing is only available for site-specific multi-family rental housing that will have first mortgages financed by tax-exempt or taxable bonds issued by HFA or will receive an award of 9% LIHTC. 

Funding Award Details

In the 2017 Unified funding round, 12 projects were funded, totaling $49,479,272.  The range was between a low of $1 million and a high of $10.2 million.

Amount Details

Per Unit Maximum Award through the HFA Open Window RFP:

• New York City: Up to $200,000 per residential unit in a supportive housing project with 50% or more supportive housing units.  Projects leveraging funds from New York City are eligible for up to $100,000 per unit.  Projects below 50% supportive will NOT receive the maximum amount and will be evaluated on a case by case basis. Up to $160,000 per additional income restricted unit up to 60% AMI is available in integrated supportive housing projects.
• Westchester, Nassau & Suffolk Counties: Up to $200,000 per supportive housing unit and up to $160,000 per additional income restricted unit up to 60% AMI in integrated supportive housing projects.
• Rest of State: Up to $150,000 per supportive housing unit and up to $95,000 per additional income restricted unit up to 60% AMI in integrated supportive housing projects.

Per Unit Maximum Award through the Unified Funding RFP:

• New York City and Westchester, Nassau & Suffolk Counties: Up to $150,000 per supportive housing unit and up to $110,000 per additional income restricted unit up to 60% AMI in integrated supportive housing projects.
• Rest of State: Up to $85,000 per supportive housing unit and up to $60,000 per additional income restricted unit up to 60% AMI in integrated supportive housing projects

Term

The regulatory agreement will require that the number of units designated as supportive housing will remain so for at least 40 years.

Network Notes

SHOP is a statewide capital development program to build supportive housing. HCR will give preference to projects that are at least 50% supportive, with no upper limit.  SHOP supports both the supportive and affordable units in a project. 

A services and operating award and/or services plan acceptable to HCR is required, and must be obtained in order to be eligible for this program. Conditional ESSHI awardees will be prioritized.

New in 2018, Medicaid Redesign Team (MRT) high cost Medicaid users are no longer a distinct subpopulation to be served.  However, certain ESSHI requirements to serve this cohort may apply.

HCR may use New Construction Program funds in lieu of SHOP for non-supportive units in Open Window mixed development projects.

Units in mixed development projects with higher AMIs, up to 130%, may be eligible for a Middle Income Housing Program Supplement.

HCR anticipates that the operating funding from the services and operating source will at least cover real estate maintenance and operating expenses for the supportive housing units. Applicants should underwrite rents for supportive housing units at an amount affordable to households earning at least 50% AMI.   Eligible Applicants are not-for-profit corporations or charitable organizations, or a wholly owned subsidiary of such corporations or organizations, or private for-profit developers. 80% of SHOP funding through FY 2020 will be prioritized for developments that will be controlled by not-for-profit organizations. The following arrangements are acceptable demonstrations of not-for-profit control:

• 100% Not-for-profit Development: Projects where the sponsor(s)/developer(s) are not-for-profits. The project will be developed and owned by a not-for-profit or a partnership of not-for profits during construction and after conversion to permanent financing.
• Turn-key Development: Projects where a not-for-profit partner is in a fee development structure with a for-profit partner where the ownership of the project is turned over to the not-for-profit provider after construction completion.
• Joint Ventures with Majority Not-for-profit Control: Partnerships between not-for-profit and for-profit entities where the majority ownership is by the not-for-profit (at least 51% ownership by the not for-profit of the controlling entity of the property owner). Such partnerships ensure that the not-for-profit has day-to-day and long-term management control over the properties.

For More Information

Read the 2018 Multifamily Open Window RFP here and read the SHOP term sheet here. 

Read the 2018 Unified Funding RFP here. 

Last updated: 08/28/2018

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