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Deals & Dealmakers

City launches down payment assistance fund to help non-profits buy property

The city has launched a new Down Payment Assistance Fund to speed the production of supportive and affordable housing across New York.
Housing Preservation and Development (HPD) Commissioner Maria Torres-Springer and Housing Development Corporation (HDC) President Eric Enderlin announced the official launch of DPAF.

In partnership with The Robin Hood Foundation, Charles H. Revson Foundation, Oak Foundation, Supportive Housing Network of New York, Enterprise Community Partners, Local Initiatives Support Corporation, Low Income Investment Fund, the Corporation for Supportive Housing, and the New York City Acquisition Fund, the fund will enable strong and experienced nonprofits to move more rapidly into contract for vacant properties, eliminating a growing obstacle to development on private sites.

The revolving fund will be targeted to non-profits that have been pre-qualified by HPD; the list of 19 nonprofits is now available on HPD’s website.

The $4.75 million DPAF is part of a broader strategy to increase the production of affordable housing units over the next decade.
Eligible projects will include those developed through the Supportive Housing Loan Program (SHLP), the Senior Affordable Rental Apartments (SARA) program or the Extremely Low and Low Income Affordability (ELLA) program with at 30 per cent of units set aside as supportive.

The City anticipates that DPAF will support the acquisition of approximately 35 private sites over its initial five-year operating period.
DPAF will provide down payment loans without a collateral requirement and expect repayment, along with interest accruals, at the time of closing on an acquisition loan, so the fund will recapitalize over time.

The DPAF will be overseen by Forsyth Street, and owned jointly by Enterprise Community Partners and Local Initiatives Support Corporation.

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