HPD’s New Infill Homeownership Opportunities Program (NIHOP) promotes the construction of new homes affordable to New York City’s workforce community. NIHOP seeks to promote mixed-income communities with affordable homeownership opportunities for moderate and middle-income households.
Preference will be given to projects with one-third of the units affordable to households earning up to 80-90% of Area Median Income (AMI). Projects may include additional tiers of affordability for households earning between 90% and 110% AMI and between 110% and 130% AMI.
Sponsors may apply to the program to develop privately owned properties or they may be selected through a Request for Qualifications (RFQ) process to purchase City-owned sites. Sponsors are responsible for assembling a development team to design, construct and market the homes. For city-owned sites, disposition will be for $1 per lot and sponsors will deliver an enforcement note and mortgage equal to the land's appraised value ("Land Debt").
Upon construction completion, the developer sells the homes to families who agree to occupy the homes for 20 years following the initial purchase from the developer. The Land Debt and any additional subsidy (“Combined Debt”) are apportioned to each home built. Purchasers will repay the Land Debt and Combined Debt attributable to their home by delivering a subordinate mortgage to the City. The Combined Debt declines on a defined schedule over 20 years. Upon resale or re-financing, initial purchasers may be required to make payments to the City out of resale or refinancing profits.
In order to be eligible for HPD-issued Capital funds, it is required that a borrower be a Housing Development Fund Corporation either alone or in partnership with for-profit developers, limited partnerships, corporations, trusts, joint ventures, or limited liability companies.
New construction of one- to three-family homes and up to approximately 14-unit condominiums/cooperatives affordable to households earning up to 130% of AMI. One- to three - family homes that include rental units must cap rents to be affordable to households earning up to 130% AMI. Projects using AHC subsidy must comply with AHC requirements that stipulate rents should be affordable at the same AMI level that applies to the end purchaser of the home.
NIHOP New Construction Program
100 Gold Street, Room 9-M2