The Sponsor Review process is intended to verify the integrity and competence of individuals and entities seeking to do business with HPD (e.g., as developers or contractors). Through a series of disclosure statement reviews and background checks, some of which are performed in consultation with the Department of Investigation, HPD’s Sponsor Review Unit works to ensure that sponsors are honest, reliable stewards of public resources. Also during the Sponsor Review process, Development Program staff analyze the physical and financial health of sponsors’ property portfolios and work with sponsors to ensure that corrective actions have been taken to address outstanding violations and arrears prior to loan closing.
Completing Sponsor Review
For sponsors, completing the Sponsor Review process in a timely and responsive manner can reduce the risk of loan closing delays as well as project suspensions or cancellations. Here are the steps.
1. Submit Sponsor Review Materials
To initiate Sponsor Review, a sponsor will submit to their HPD Project Manager the following set of disclosure forms, supporting documents, and spreadsheets. HPD encourages sponsors to submit the necessary information six to nine months in advance of project closing.
a. Disclosure Statement and Supporting Documents (PDF): for individuals and entities that have not transacted with HPD on a development project in the last 36 months
b. Affidavit of No Change (PDF): for individuals and entities that have transacted with HPD on a development project in the last 36 months and have no significant changes to disclose
c. New Entity (PDF): for single purpose entities created to transact with HPD on a specific project
d. Certificate of Incorporation Routing Form (MS Word): for projects that will require the creation of a Housing Development Fund Corporation
e. Project Organizational Chart (PDF): all entities must submit
f. Property Portfolio (MS Excel): all individuals and entities must submit
Note: Non-profit sponsors should refer to the Not-For-Profit Housing Committee handout (PDF) for additional information on submission requirements.
2. Respond to Requests for Additional Information
In the event that a sponsor submits an incomplete Disclosure Statement (including Supporting Documents), Affidavit of No Change, New Entity Form, or Property Portfolio, the HPD Project Manager will inform the sponsor that all missing documents must be submitted immediately.
Should the Sponsor Review Unit uncover through disclosure statement review or background checks any issues that require explanation, the HPD Project manager will notify the sponsor and request that an explanation be provided in a timely manner.
Additionally, should HPD identify any issues with the physical or financial health of a sponsor’s property portfolio, the HPD Project Manager will inform the sponsor and request timely submission of proof of actions to correct the issues. For additional information on clearing violations and paying down arrears, please refer to the FAQs on Clearing HPD Violations (PDF) and Paying Municipal Arrears (PDF).
3. Submit Pre-Transaction Affidavit
Two weeks prior to loan closing, sponsors are required to submit a Pre-Transaction Affidavit affirming that there have been no significant changes to the project or the sponsor's ability to proceed with the project since the completion of the Sponsor Review process.
If you have questions regarding Sponsor Review, please contact:
Robert King, Director of Sponsor Review
New York City Department of Housing Preservation and Development
100 Gold Street, Room 9-V3
New York, NY 10038