NYS HCR Supportive Housing Opportunity Program (SHOP)

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Status: Available

Summary

Supportive Housing Opportunity Program (SHOP) is a statewide capital development program used to finance and build supportive housing.  SHOP is available through both the Multifamily Finance (9%) and Open Window (4%) programs. The use of SHOP funding is limited to projects with service and operating award through Empire State Supportive Housing Initiative (ESSHI) or other local municipal agencies. 

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. 

Tenant Eligibility Criteria

Families, individuals and/or young adults who are both homeless 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;
• Individuals with Developmental Disabilities.

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 young adults, survivors of domestic violence, and individuals with I/DD 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

Nonprofit organizations or private for-profit developers are eligible to apply.

80% of SHOP funding through FY 2020 will be prioritized for developments controlled by nonprofit organizations. Joint ventures must be majority controlled by the nonprofit partner in order to be eligible for this prioritization.

Amount

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.
• Westchester, Nassau & Suffolk Counties: Up to $200,000 per supportive housing unit and up to $160,000 per affordable 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 affordable unit up to 60% AMI in integrated supportive housing projects.

Per Unit Maximum Award through the HCR's Multifamily Programs Unified Funding RFP for 2019:

• New York City and Westchester, Nassau & Suffolk Counties: Up to $150,000 per supportive housing unit and up to $110,000 per affordable 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 affordable unit up to 60% AMI in integrated supportive housing projects

Term

HCR requires a regulatory agreement of at least 40 years.

Network Notes

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 $30 million in SHOP funds is available through HCR's Multifamily Finance 9% RFP:

• Projects must have a minimum of 30% of the units be supportive to qualify for SHOP funding. HCR will prioritize projects that are at least 50% supportive, with no upper limit. SHOP may support 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.
• 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.   

Last updated: 10/16/2019

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