Residential Properties in Brooklyn, NY

Below is information about financial and incentive programs available for residential properties.  For further assistance, please contact Lori Raphael, director of real estate & development, at 718-875-1000 ext. 140, or lraphael@brooklynchamber.com.

The Article 8-A Loan Program - HPD

Program provides rehabilitation loans for the replacement of major building systems.  Loans are available in amounts of up to $25,000 per dwelling unit.

Partial Real Property Tax Exemption Under Section 421-A and 421-B

Program encourages new construction of residential property by granting tax exemption benefits.

Partial Real Property Tax Exemption and Abatement Under Section J-51

Program encourages the renovation of residential property by granting tax exemptions and abatement benefits.

Neighborhood Entrepreneurs Program (NEP)

NEP enables neighborhood-based private property managers to manage and subsequently own clusters of occupied and vacant City-owned buildings. By focusing on small, locally-based entrepreneurs, HPD is strengthening local real estate capacity in addition to ensuring quality management and maintenance for the buildings.  Entrepreneurs apply to participate in the program through Request for Qualifications (RFQ) notices.

Neighborhood Redevelopment Program (NRP)

NRP conveys clusters of occupied and nearby vacant City-owned buildings to selected community based not-for-profit organizations for rehabilitation and operation as rental housing. Following the sale, the buildings’ rehabilitation is funded through City Capital, Community Development Block Grant Federal HOME funds and proceeds from federal low income housing tax credits.  Organizations apply to participate in the program through a Request for Qualifications (RFQ).

Neighborhood Homes Program (NHP)

Under the Neighborhood Homes Program, HPD conveys occupied one- to four-family buildings to selected community-based not-for-profit organizations for rehabilitation and eventual sale to owner-occupants. The not-for-profit organization purchases the properties subject to existing tenancies. The not-for-profit sponsor will receive funding in the form of an evaporating loan from HPD and a loan from the Local Initiative Support Corporation (LISC), The Enterprise Foundation, or a conventional lender.  Once rehabilitation is completed, each building is marketed to existing tenants or buyers who agree to reside in the building and who qualify for mortgage financing to purchase the property.

Large-Scale Development

The Large Scale Development Units in HPD’s Office of Development foster residential, commercial/retail, and mixed-use development of City-owned land. The Unit develops comprehensive, community-based plans to transform vacant and underutilized City property holdings into privately-owned, mixed-use and mixed-income developments which help to strengthen and stabilize neighborhoods. The Units issue Requests for Proposals (RFPs) as part of a competitive process to select development teams to purchase, develop, and manage properties designated for large-scale development.

Multi-Family New Construction Unit

The Multi-Family New Construction Unit in HPD’s Office of Development fosters residential, commercial/retail, and mixed-use development of City-owned land. The Unit develops comprehensive, community-based plans to transform vacant and underutilized City property holdings into privately-owned, mixed-use and mixed-income developments which help to strengthen and stabilize neighborhoods. The Unit issues Requests for Proposals (RFPs) as part of a competitive process to select development teams to purchase, develop, and manage properties designated for large-scale development.

Cornerstone Program

The Cornerstone Program is a multi-family new construction housing initiative. This initiative will create almost 3,000 new middle-income and market-rate housing units on vacant City-owned land, financed principally through private sources. Working in tandem with the Housing Development Corporation’s New Housing Opportunities Program (New HOP), and other funding sources, HPD is encouraging the development of new homeownership and rental multifamily apartment buildings and townhouses.

Vacant City-Owned Buildings

Under the Vacant City-Owned Buildings Program, buildings are sold to experienced developers who rehabilitate the buildings with private financing and equity and then either sell the units to owner-occupants or own and manage the buildings as rental apartment buildings. The developers are responsible for securing construction and permanent financing, overseeing the design and construction, and marketing the completed units.

New Partners Program

The New Partners Program provides loans to owners to renovate small buildings where a portion of the building is vacant, and units are in need of rehabilitation. The Program is especially focused on buildings with existing commercial tenants and vacant residential space above.  HPD will provide up to $40,000 per unit for rehabilitation of units in buildings with up to 20 residential units.

Participation Loan Program (PLP)

PLP provides low-interest loans to private owners for the moderate- to gut-rehabilitation of multiple dwellings with more than twenty units. City funds at one percent interest are combined with market-rate private financing to provide a below market interest rate. Funds may also be used for refinancing in conjunction with rehabilitation.

Small Buildings Loan Program

The Small Buildings Loan Program provides loans for the moderate-to-gut-rehabilitation of buildings containing between one and twenty units. Properties must be at least 50% residential and must be privately owned. City Capital funds, loaned at 1% interest with a thirty year term, and/or Federal HOME Grant funds are combined with bank financing to produce a below market interest rate loan.

Low Income Housing Tax Credits 

Tax Credits are awarded by HPD to qualified low-income housing projects in New York City. To be eligible, projects must be substantial rehabilitation or new construction with at least 20% of apartments reserved for low-income households. During annual funding rounds, developers apply competitively to HPD for allocations of tax credits, which are awarded based on selection criteria specified in the City’s Qualified Allocation Plan. Once tax credits are allocated to a project, the developer typically sells the credits to corporate investors who supply private equity to cover a portion of development costs. The investors often participate through pooled equity funds raised by syndicators such as the New York Equity Fund, the Enterprise Social Investment Corporation and others. The investors receive credits that reduce their corporate federal income tax bills for ten years.