NYC Housing Preservation and Development partners with the Community Preservation Corporation (CPC) and Local Initiatives Support Corporation (LISC) to preserve critical affordable homes in New York City.
Preservation efforts amplify City’s ongoing “City of Yes” campaign for holistic zoning changes to tackle the affordable housing crisis.
New York, New York – The New York City Department of Housing Preservation and Development (HPD) is proud to announce the launch of a new pilot initiative designed to streamline the process for property owners seeking HPD financing. The Capital Partnership for Affordable Renovation Loan Program will enhance the efficiency of affordable housing rehabilitation efforts, ensuring that New Yorkers can enjoy safe and high-quality living conditions while preserving much needed affordable housing.
The Capital Partnership Loan Program, set to debut this fall, is a moderate-rehabilitation loan initiative targeting residential buildings with three or more units in New York City. The new pilot program aims to replicate other successful models of delegated financing structures by empowering select lending partners to conduct preliminary screenings, eligibility assessments, and due diligence on behalf of the city.
In response to the rising demand for HPD’s financial assistance amidst high interest rates and increasing construction costs, this program will allow HPD to partner with qualified lenders to expand HPD’s capacity to assist owners. Capital Partnership will also feature a streamlined loan application process for property owners seeking affordable rehabilitation financing.
“In the midst of our city’s housing crisis, we must embrace bold and innovative solutions. The Capital Partnership for Affordable Renovation Loan Program is a testament to our commitment to thinking creatively and acting decisively,” shared Housing and Preservation Commissioner Adolfo Carrion Jr. “By partnering with trusted lending partners to handle critical aspects of the process, we’re not just speeding up access to crucial funding—we’re redefining how we tackle affordable housing preservation. This program will streamline the path for property owners, making it easier for them to revitalize their buildings and provide safe, high-quality homes for our tenants. It’s a game-changing step that reflects the urgency and ingenuity we need to meet today’s housing challenges head-on.”
“CPC is proud to partner with HPD to administer the CPAR program, helping the city to streamline its processes for multifamily owners seeking preservation financing,” said Rafael E. Cestero, CEO of the Community Preservation Corporation. “At a time when our housing crisis is deepening, it’s essential that we come together to find innovative solutions to expand the City’s ability to provide the resources owners need to maintain the physical and financial viability of their properties. I applaud HPD Commissioner Carrion and his team for thinking outside of the box, and working with experienced partners like CPC and LISC to help ensure that more New Yorkers have access to safe, stable, affordable housing.”
“LISC NY is proud to help expand the City’s capacity to finance rehabilitation projects that are critical to ensuring that the affordable homes we currently have are safe, comfortable places to live. Ending the housing crisis that’s driving up costs and widening the racial wealth gap requires deploying every tool we have, and that includes preserving our existing housing stock, which this new program will help us achieve,” said Valerie White, Senior Executive Director of Local Initiatives Support Corporation (LISC)
Program Background
Capital Partnership builds on the legacy of the Participation Loan Program, which has successfully preserved over 40,000 units of affordable housing in New York City.
This initiative directly stems from the strategic vision outlined in Mayor Adams’ Housing Blueprint. By launching Capital Partnership, we are continuing to translate the Blueprint’s goals into actionable solutions that address both immediate and long-term housing needs. This program is a practical extension of the Blueprint’s commitment to advancing affordable housing, demonstrating our proactive approach to preserving and enhancing safe, high-quality living conditions for all New Yorkers.
City of Yes to Preservation
This new program is being introduced alongside the ‘City of Yes’ campaign, highlighting our comprehensive approach to addressing housing issues. The ‘City of Yes’ campaign is a transformative initiative aimed at overcoming barriers to development and fostering a more inclusive and adaptable urban environment. It emphasizes removing regulatory obstacles and streamlining processes to support innovative housing solutions and economic growth. By promoting flexibility and proactive problem-solving, the campaign seeks to make New York City more resilient and responsive to the needs of its diverse population.
Capital Partnership complements the campaign’s goal of breaking down barriers and making processes more efficient. By streamlining financing for property owners, this initiative reflects our commitment to innovative solutions in affordable housing preservation, ensuring we address the city’s housing needs from every possible angle.
Capital Partnership for Affordable Renovation Program Details
HPD is implementing Capital Partnership to streamline access to financing and enhance living conditions in affordable housing, aligning with the goals of the Mayor’s Housing Blueprint. The program leverages partnerships with lenders to handle critical aspects of the loan process, allowing HPD to manage it efficiently with existing staff resources. Success will be measured by key metrics such as project closure times and the number of buildings assisted, providing valuable insights for future adjustments and ensuring the program effectively meets its objectives. More information below:
Participating Lenders:
- HPD has partnered with the Community Preservation Corporation (CPC) and the Local Initiatives Support Corporation (LISC).
- These lenders will handle project evaluations, underwriting, documentation, and communication with HPD.
- Additional lenders interested in joining the program should contact [email protected].
- HPD believes that starting with two lenders will adequately handle the expected demand and provide valuable insights to refine the program. Adjustments will be made based on the pilot’s outcomes.
Loan Terms:
- The program includes a minimum 30-year regulatory agreement and offers up to $80,000 per dwelling unit in subsidy.
- All projects will require rent stabilization.
Eligibility:
- Residential buildings with three or more units are eligible, provided they meet specific criteria related to rent and sale prices.
- Exclusions apply to projects involving acquisition financing, supportive housing, Mitchell-Lamas, and others.
- Rents or sale prices must adhere to specified income limits.
- Certain buildings with extensive tenant relocation needs are excluded.
Program Reach:
- How many buildings will this program assist? As a pilot program, the exact number of buildings assisted will be determined by the capital budget and program demand.
- What is the maximum subsidy available? Up to $80,000 per dwelling unit.
- What types of work can be financed? The program supports moderate rehabilitation affecting multiple systems (e.g., heating, plumbing, electrical) and must meet HPD’s Preservation Design Guidelines, construction and design standards.
- Will HPD close more projects with this program? The program aims to streamline the financing process, potentially increasing the number of projects HPD can support annually.
Timeline:
- The pilot phase will be reviewed after two years to assess performance and make necessary improvements.
Financing:
- Participating lenders will receive fees for their services as part of the program.
- The program is funded through the FY25 budget allocation.
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