For Immediate Release: April 5, 2018
Contact: Matthew Creegan, 212-863-7879
City Launches New Effort to Match Sellers of Affordable Buildings with Qualified Buyers
HPD issuing Request for Qualifications for organizations capable of purchasing buildings and preserving affordability
RFQ will be used to create a list of nonprofits that may access funding through City’s new Neighborhood Pillars Program
NEW YORK, NY – The New York City Department of Housing Preservation and Development (HPD) Commissioner Maria Torres-Springer announced today the agency’s release of a Request for Qualifications (RFQ) to identify qualified buyers to purchase and rehabilitate buildings throughout the city. The City will use the RFQ to create a list that property sellers can turn to for potential buyers that will maintain affordability for residents.
While successful respondents to the RFQ will appear on a qualified buyers list that will be used by numerous HPD preservation programs, the non-profit organizations identified on the list will be eligible to receive additional financial and technical assistance through the City’s Neighborhood Pillars Program, which was first announced as part of Housing New York 2.0, the Mayor’s ambitious housing plan to finance 300,000 affordable homes by 2026.
“As we accelerate and expand our work through Housing New York 2.0, we are taking a more targeted, data-driven approach to preserving affordability and protecting residents from the threat of predatory investment. This RFQ is a matchmaking tool to connect regulated buildings with qualified developers committed to affordability and creates a direct pipeline to our new Neighborhood Pillars Program, designed to help non-profit and community based organizations acquire unregulated rent stabilized buildings,” said HPD Commissioner Maria Torres-Springer. “I want to thank our many partners who have been instrumental in shaping this program and providing yet another resource to help safeguard the affordability of our city for generations to come.”
Neighborhood Pillars will help the qualified nonprofits, mission-based organizations, and certified Minority- and Women-Owned Business Enterprises (M/WBEs) identified through the RFQ process purchase unregulated and rent stabilized buildings in an effort to protect tenants and stabilize communities. The program will fund the acquisition and preservation of nearly 7,500 homes over the next eight years.
“Small multifamily rental properties play a critical role in providing housing for low- and moderate-income individuals and families throughout New York City. CPC is proud to continue our long-time partnership with HPD through the launch of this RFQ and the Neighborhood Pillars Program, which aims to address the unique capital challenges that small buildings face. We look forward to working with neighborhood-based partners, MWBEs and mission-based nonprofits to provide the much-needed capital to help keep small, multifamily properties stable and affordable,” said Rafael E. Cestero, President & CEO of the Community Preservation Corporation.
“This is a very innovative and important City-led effort to preserve affordable housing. An increasing number of affordable homes that New Yorkers rely upon in the private rental market are being put at risk by speculative investors,” said Benjamin Dulchin, Executive Director of the Association for Neighborhood and Housing Development. “The City’s Neighborhood Pillars program opens up an important new strategy that will allow mission-driven, non-profit buyers to acquire buildings where there is affordability at risk, and protect affordably that can be preserved.”
“Strong, mission-aligned nonprofits are critical to lifting up and stabilizing communities throughout New York City,” said Judi Kende, Vice President and New York Market Leader for Enterprise Community Partners. “Through this RFQ and the Neighborhood Pillars Program, HPD is engaging nonprofits in their efforts to preserve small multifamily buildings, and connecting nonprofits to necessary financial and technical support. Enterprise commends HPD and urges nonprofits throughout the city to participate in this critical work.”
“The rent-regulated multifamily housing stock is a key resource for maintaining affordability for low- and moderate-income New Yorkers, and we applaud the City for creating a dedicated program to enable mission-driven developers to acquire and steward these assets,” said Sam Marks, Executive Director of LISC NYC. “The Neighborhood Pillars Program has the potential to protect these buildings from predatory purchasers and speculators. We are hopeful that the City will prioritize locally-based, mission-driven developers, such as community development corporations, that would commit to long-term affordability even beyond what the public financing regulatory agreements require. We look forward to working with HPD and the NYC Acquisition Loan Fund to advance the goals of the Neighborhood Pillars Program.”
This RFQ is the first step in rolling out the new Neighborhood Pillars program. HPD is partnering with the New York Acquisition Loan Fund and its originating lenders to develop the Neighborhood Pillars program, leveraging private financing to expand the City’s Acquisition Loan Fund and establish a new mechanism to help nonprofit community-based organizations access the capital and technical assistance they need to compete successfully in the acquisition process. The program term sheet is due out later this spring to set the program in motion next fiscal year.
In addition, HPD worked closely with the City Council to pass a new Predatory Equity bill, signed into law early this year to help curb speculation and displacement in fast-changing neighborhoods. Starting this fall, HPD will publish a “Speculation Watch List” that identifies recently sold, rent-regulated buildings where tenants are at risk of displacement due to potentially predatory investors.
The initial submission deadline to the RFQ is May 31, 2018. Applicants to the RFQ will be evaluated on their acquisition and development experience, portfolio management history, financial capacity, and the quality of their identified property manager. HPD will publish the list based on the initial application round and will accept additional applications on a rolling basis.
The New York City Department of Housing Preservation and Development (HPD) is the nation’s largest municipal housing preservation and development agency. Its mission is to promote quality housing and diverse, thriving neighborhoods for New Yorkers through loan and development programs for new affordable housing, preservation of the affordability of the existing housing stock, enforcement of housing quality standards, and educational programs for tenants and building owners. HPD is tasked with fulfilling Mayor de Blasio’s Housing New York Plan which was recently expanded and accelerated through Housing New York 2.0 to complete the initial goal of 200,000 homes two years ahead of schedule—by 2022, and achieve an additional 100,000 homes over the following four years, for a total of 300,000 homes by 2026. For full details visit www.nyc.gov/hpd and for regular updates on HPD news and services, connect with us on Facebook, Twitter, and Instagram @NYCHousing.