Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
1. PROGRAM HPDs Mixed Income Program funds the new construction of mixed income multi-family rental
DESCRIPTION projects affordable to households earning up to 130% of Area Median Income. Projects may have
a range of affordability tiers.
HPD subsidy is in addition to construction and permanent financing sources provided by, but
not limited to: private institutional lenders; New York City Housing Development Corporation
(HDC) programs such as LAMP, Mixed Income (tax exempt bonds) or New HOP (taxable
bonds); New York State Division of Housing and Community Renewal (DHCR) programs such
as Homes for Working Families, New York State Low Income Housing Tax Credit (SLIHC),
Federal Low Income Housing tax Credit (LIHTC) and New York State Low Income Housing
Trust Fund (HTF); and New York State Housing Finance Agency programs.
2. ELIGIBLE In order to be eligible for Capital funds, it is required that a borrower be a Housing Development
BORROWERS & Fund Corporation either alone or in partnership with for-profit developers, limited partnerships,
SPONSORS corporations, trusts, joint ventures, limited liability companies.
The development team for the project must have demonstrated a track record in successfully
developing, marketing and managing the type of facility proposed or must form a joint venture
with an entity with such expertise. Borrowers must demonstrate sufficient financial stability and
liquidity to construct and operate the project.
3. HPD HPD subsidy calculation is based on number of units with rents affordable to households at or
MAXIMUM below 130% AMI according to the chart below. Projects may select only one of the three
SUBSIDY & options. Preference will be given to projects requesting less than the maximum subsidy.
LOAN TERMS
Affordability Options City-Owned Sites* Privately-owned sites
Minimum 50% of units less than 130% AMI
Up to $40,000
Remainder at market rate Up to $30,000 per restricted DU per restricted DU
Additional subsidy may be provided on a discretionary basis for projects with 20 units or less.
*Current City or State-owned property or sites acquired through the City of New York within the
past 15-years still under the same ownership entity. Projects developed under HPDs
Inclusionary Housing Program will be considered for subsidy at or below levels provided for
City-owned sites.
4. LOAN TERMS Loan Term: 30 years (Loan terms vary by funding source.)
Interest Rate: 1% per annum plus .25% servicing fee during construction.
Amortization: Balloon allowable up to 100% of HPD loan amount.
Debt Service Coverage: 115% on all financing
Loan to Cost: May not exceed 90% overall of total development cost.
Income to expense ratio: Minimum of 1.05x on all financing. 1.10x when commercial space
is more than 25% of gross income. Project Income should include residential rental and
commercial income, as applicable
Developers Fee: A developers fee is only allowed when tax credits are used or funds are
combined with other public subsidy programs allowing such fees. As described in the HPD
HPD NEW CONSTRUCTION TERM SHEET
QAP, total developer fee is not to exceed 15% of development costs (excluding developer
fee, reserves and syndication/partnership expenses) and 10% of acquisition costs for tax
credit projects. The total fee should be fully deferred at construction loan closing. HPD may
require a reduction in paid developer fee in order to reduce public subsidy. Consultant fees
should be paid from the developer fee.
HPD requires that the general contractor secures projects by a letter of credit for 10% of
hard costs excluding contingency. Payment and Performance bond for 100% of hard costs
may be accepted in lieu of letter of credit.
Projects funded with Federal funds require compliance with Section 3 new hires and Davis
Bacon prevailing wages, as applicable.
6. MAXIMUM Initial Rents: Initial rents for tenants with low incomes (50% AMI and 60% AMI) are calculated
INITIAL RENTS, at 30% of 48% AMI and 30% of 58% AMI. All other rents are calculated at 30% of the target
INCOME LIMITS, AMI. All rent levels are calculated as gross rents less an electricity allowance.
& RENT
INCREASES 2009 MAXIMUM INITIAL RENTS FOR RESTRICTED UNITS
FOR TENANTS WITH INCOMES UP TO:
50% AMI 60% AMI 80% AMI 100% AMI 130% AMI
0 BR $596 $731 $872 $1103 $1,448
1 BR $637 $781 $1,098 $1386 $1,818
2 BR $769 $942 $1,322 $1668 $2,186
3 BR $888 $1,087 $1,527 $1926 $2,525
Income Limits: The following income limits apply to middle income units with rents set at 80%,
100% and 130% AMI.
Units with rents at 80% AMI can be rented to households with incomes up to 100% AMI.
Units with rents at 100% AMI can be rented to households with incomes up to 130% AMI.
Units with rents at 130% AMI can be rented to households with incomes up to 160% AMI.
Rent Increases: Upon resident occupancy, rent increases for restricted units will be governed
by the lower of AMI or rent stabilization increases, and rent increases for market rate units will
be governed only by rent stabilization increases, with no vacancy or luxury decontrol for the
duration of the HPD restriction period for all unit types. HOME-funded and tax credit units will be
subject to additional restrictions and monitoring during the HOME affordability period.
HPD NEW CONSTRUCTION TERM SHEET
7. DESIGN AND Projects must meet HPDs Design Guidelines for New Construction and plans must be
CONSTRUCTION approved by HPD.
REQUIREMENTS HPD will approve unit distribution. Preference will be given to projects with at least 50%
two-bedroom units OR with at least 30% two-bedroom units and 10% three-bedroom
units. Suggested minimum square footages are:
8. REAL ESTATE Projects may qualify for 421-a, 420-c or Article XI tax exemptions.
EXEMPTION Developers must indicate if the project is conveying a tax exemption to another project on
the same zoning lot.
9. MARKETING Marketing process is overseen by HPD except for joint HPD-HDC projects, where HDC
AND RENT-UP will manage the marketing process and reviews on-going income certification.
On an annual basis, HPD may require a certified rent roll, written certification of tenant
incomes, and other supporting documentation.
11. EXTENDED Participating projects are subject to HPDs extended affordability policy.
AFFORDABILITY
HPD, in its sole discretion, may, at any time and without prior notice, terminate the program,
amend or waive compliance with any of its terms, or reject any or all proposals for funding.