Multifamily Housing Rehabilitation Loan Program (HRP) - HPD

Housing Preservation & Development


Home Repair and Preservation Financing

Multifamily Housing Rehabilitation Loan Program (HRP)


Housing Rehabilitation Loan Program (HRP)

The Multifamily Housing Rehabilitation Loan Program (HRP) ) provides rehabilitation loans for the replacement of major building systems in multifamily buildings, including but not limited to roof and window replacement, building envelope work (Local Law 11 and pointing), and upgrades to the heating, electrical, and/or plumbing systems. This program is most suitable for multi-family buildings needing moderate rehabilitation or replacement of 1-3 building systems that have no or limited ability to leverage private financing.

Eligible Buildings

Owners of rental or cooperative buildings with 3 apartments or more are eligible to apply. The loans must be used for residential work only (not commercial spaces).

Program Overview

HPD can lend up to $35,000 per residential unit for all buildings requiring moderate rehabilitation work. Projects with substantial lead treatment needs will have access to an additional $10,000 per residential unit to treat lead-based paint hazards (“Lead Treatment Funds”). Projects may be eligible for a full or partial property tax exemption.

For more information on the loan terms (including the interest rates), see the HRP term sheet.

In exchange for HPD’s financial assistance, participants enter into an affordability agreement with HPD for the duration of the loan term.

Process

Thank you for your interest in the Multifamily Housing Rehabilitation Loan Program (HRP). We are sorry to inform you we currently have limited staff capacity and a significant backlog of projects. As a result, the assignment of a project manager can take up to one year. Please submit a complete Preliminary Application with detailed information about the project characteristics and needs. This application will allow us to understand the needs of your project, and we will contact you when we are able to assign a project manager. Thank you for your interest and we look forward to working with you.

Application: Complete the application materials.

Building Assessment: An HPD Inspector will conduct a roof-to-cellar assessment of the physical conditions of your building. The amount of the loan will be based on the efficiency and rehabilitation work identified through the assessment.

Scope of Work Development:An HPD inspector will complete a scope of work in accordance with HPD specifications to be bid out to contractors of your choosing. Projects eligible for Lead Treatment Funds will have lead testing and a lead treatment scope of work performed by an HPD Lead Inspector at no cost to the owner.

Bidding: The scope of work must be bid out to at least 3 contractors of your choosing (HPD cannot recommend any contractors). A bid walk-through, led by HPD, will take place to ensure the contractors understand the scope of work. All bids must be returned to HPD.

Selecting a Contractor: All bids will be reviewed by HPD for cost reasonableness. Once the review is complete, HPD will recommend the lowest, reasonable complete bid.

Loan Closing: Once the bid proposal is approved by HPD and the HPD loan due diligence process is complete, the loan closing will take place.

Construction: HPD will monitor the construction process to ensure adherence to the scope of work and HPD specifications.