This month, the City’s Department of Housing Preservation and Development (HPD), Community Preservation Corporation (CPC) and Housing Development Corporation (HDC), together with Citi Community Capital, launched a Storm Recovery Loan Fund, a pilot program to provide up to $40 million in low-cost loans to fund the repair of multi-family buildings damaged by Hurricane Sandy.
According to the City’s press release, building owners can put the funds toward resiliency measures, like installing state-of-the-art heating and electric plants that are repositioned to withstand the next storm by being located on higher floors and/or in waterproof compartments. This focus on mitigation will decrease the cost of recovery and reduce the destructive impact of future storms. In addition, the program aim is to promote green improvements that will conserve energy and save multi-family homeowners money. The new fund blends a subsidy from HPD with CPC financing to provide loans that are below market rate, allowing owners to make needed repairs in the aftermath of Sandy.
“It is critical that owners of multi-family buildings have the resources available to get back up and running as quickly as possible,” said HPD Commissioner Mathew Wambua. “The Storm Recovery Loan Fund uses City resources to leverage private dollars at below market rates. We are grateful for the commitment our partners have shown in helping fellow New Yorkers rebuild after Sandy.”
HDC will provide a 10 percent first loss credit enhancement on construction loans financed through the program. In this pilot phase, the majority of applications for the Storm Recovery Loan Fund will be primarily for buildings between 5 and 45 units, although larger buildings will be considered. Applications are accepted on a rolling basis and funding is available both to repair storm damage and to mitigate the potential impact of future storms.
Both for-profit and not-for-profit owners of multifamily buildings in the City are eligible to apply for the Storm Recovery Loan Fund. Loan proceeds may be used for repair work ranging from systems replacement and storm mitigation retrofits to gut rehab, where necessary. Storm Recovery Loans may have up to a 30-year term. CPC’s portion of the loan will have a rate of approximately 4.5%, and HPD’s funds have an interest rate of 1%, for a blended rate below other conventional financing.
All projects must comply with HPD standard specifications and substantial rehab projects must achieve Enterprise Green Communities Certification. In keeping with the City’s Greener Greater Buildings Plan, all of the properties financed under this program will be benchmarked for energy usage and retrofit for energy savings will be included in their scopes of work. All buildings burning number 6 oil will be converted to comply with the City’s Clean Heat initiative. In addition, gut rehabilitation projects must meet HPD’s construction specifications and design guidelines.
Building owners who are interested in applying for the program should call 718-601-6600 (for buildings in Manhattan/Bronx) or 718-210-1702 (for buildings in Brooklyn/Queens/Staten Island).
The terms of the program can be found by clicking here.