1. Financing & Building Affordable Housing: A How To Session for Local Developers New to the Game

2. Why Develop Affordable Housing?
Do well by doing good
Just do good
Diversify your portfolio vs. market-rate
Build assets – for profits and non-profits
Build relationships with banks, investors, city government
Learn many new acronyms

3. Who Are The Players (Partners)?
City Agencies: NYC Department of Housing Preservation and Development (HPD), NYC Housing Development Corporation (HDC)
State Agencies: NYS Homes and Community Renewal (HCR), NYS Office of Mental Health (OMH)
Federal Government: HUD
Lenders: Community Development Groups at Banks
LIHTC Syndicators/Investors
General Contractors
Lawyers

4. What Do We Do? Jonathan Beuttler, NYC HPD
Matt Bissonette, Citi Community Capital
Thomas Yu, Asian Americans For Equality
Frank Dubinsky, Monadnock Development

5. The Challenge
Financing a Building that is worth less than the cost to build.
100 units of low-income housing
Total Cost: $36.5 million
Net Operating Income: $530,000
PROJECT SOURCES
First Mortgage
6,320,000
Subsidy Loan
12,000,000
Low-Income Housing Tax Credits
16,450,000
Deferred Developer Fee
1,730,000
Total
36,500,000

6. Available Financing Sources
Affordable developments require subsidies to fill the “gap”.
Subsidies can include:
Tax Exempt Bonds – HDC or HFA
Low-Income Housing Tax Credits (LIHTC) – Private Sector
Low-Interest Rate Loans – HPD, HDC and HCR
Grants – NYSERDA, Banks
Rental Assistance – Section 8
Tax Abatements – 420C, Article XI
Below-Market Land Cost – RFPs!

7. HPD Financing Programs
HPD has a number of financing programs that you should know well:
Extremely Low and Low-Income Affordability (ELLA)
Mixed Income Program (Mix & Match)
Mixed-Middle-Income (M2)
Neighborhood Construction Program (NCP)
New Infill Homeownership Opportunities Program (NIHOP)
Supportive Housing Loan Program (SHLP)
Senior Affordable Rental Apartments (SARA)

8. What Is Important To Your Partners?
Agencies: Track Record and Fitting In the Programs!
Banks: Trust, Balance Sheet and Loan Guarantees
LIHTC Investors: Trust, Tax Credit Guarantees and Schedule
Community: Serving Their Priorities and Transparency

9. Don’t Have It All? Nobody Does.
What if you lack one of the items on the previous page?
PARTNER!
Non-Profit and For-Profit
For-Profit and For-Profit
What can you bring to the partnership?
Mission and non-profit status
Community Relationships
Balance Sheet/Guarantees
Management/Compliance
Hard Work
Construction Expertise