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. The use of SHOP funding is limited to projects with a service and operating award through Empire State Supportive Housing Initiative (ESSHI) or other local municipal agencies.  SHOP is available through both the Multifamily Finance 9% LIHTC RFP and Multifamily Finance 4% program.

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 multifamily 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

SHOP is available to projects for households earning up to 60% AMI, 80% if using LIHTC Income Averaging. 

Supportive units are available to 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;
• ESSHI seniors; (see Network Notes below)
• 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

In New York City, 

Nonprofit corporations or charitable organizations, or a wholly owned subsidiary of such corporations or organizations. 

Rest of New York State:

Preference for nonprofit corporations or charitable organizations, or a wholly owned subsidiary of such corporations or organizations.

Nonprofit Control can be demonstrated by either 100% nonprofit ownership, turnkey projects or a joint venture with at least 51% nonprofit control. 

Amount

Per Unit Maximum Award for projects with HFA bonds financed through the Multifamily Finance 4% program:

• New York City: Up to $200,000 per supportive residential unit in a supportive housing project with 50% or more supportive housing units. Up to $160,000 for other affordable units and up to $150,000 per unit for NYC 15/15 subsidized units. Projects leveraging capital 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 for projects with HCR 9% LIHTCs financed through the HCR's Multifamily 9% LIHTC RFP:

• 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, maximum 50 years.

Network Notes

• New in 2022: Projects using SHOP funds for ESSHI-eligible seniors can designate a maximum of 10% of the project’s units for this population and must incorporate another ESSHI population to reach the supportive requirement for SHOP funds. If more than 10% of units are for is ESSHI-eligible senior, the Senior Housing program must be used
• Per the Fall 2022 HCR Multifamily Finance 9% RFP, the anticipated funding for this program is $30 million.
• 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.
• 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 and no more than 60% AMI. 
• Projects that target at least 10% of the income restricted units at up to 30% AMI will receive priority in funding. 
• Prior to 2022, 80% of SHOP funding was prioritized for developments controlled by nonprofit organizations.  

Last updated: 11/04/2022

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