The Habitat NYC Community Fund, a subsidiary of Habitat for Humanity New York City, has become a federally certified Community Development Financial Institution (CDFI).
In addition, the Community Fund announced the closure of its first four deals, leveraging over $640,000 in loans to preserve a total of 310 units of affordable housing.
The borrowers include 645 Barretto Street HDFC, Le Celia Owners Corp, 1175-77-85 Anderson Ave HDFC.
CDFIs are certified by the Treasury’s Community Development Financial Institutions Fund and must have a primary mission of promoting community development in distressed communities; provide financial products and services.
The Habitat NYC Community Fund will provide low- to moderate-income homeowners in income-restricted co-ops with financial lending and technical assistance designed to strengthen their ability to remain in their homes.
HDFC buildings were created several decades ago when the city allowed tenants in buildings with derelict landlords to form co-operatives, take over their buildings, and buy their apartments at a huge discount.
Across the New York there are over 30,000 affordable cooperatives known as HDFCs. Today, thousands are facing foreclosure due to a lack of capital to address normal wear and tear with age, unoccupied units that need rehabilitation or longstanding municipal arrears with high interest rates and penalties.