HPD's Extremely Low & Low-Income Affordability (ELLA) Program funds the new construction of low income multi-family rental projects affordable to households earning a range of incomes from 30% to 60% of Area Media Income (AMI). ELLA requires that 10% of the apartments in a project are set aside for formerly homeless households and an additional 30% of the apartments are affordable to extremely low and very low-incomes between 30% - 50% AMI. Alternatively, projects may have 30% of the apartments set aside for formerly homeless households and an additional 10% of the apartments affordable to households earning between 40% - 50% AMI. Projects may include a tier of units (up to 30% of the apartments) with rents affordable to households earning between 70% - 100% AMI.
The HPD ELLA program can be used in combination with tax exempt bond financing and 4% low income housing tax credits, or with 9% low income housing tax credits. Proposals considering set asides for formerly homeless families may utilize funds available under HPD’s Our Space Initiative in combination with ELLA Program subsidies.
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. The development team for the project must have demonstrated a track record in successfully developing, marking, and managing the type of facility proposed or must form a joint venture with an entity which has such expertise. Borrowers must demonstrate sufficient financial stability and liquidity to construct and operate the project.
HDC's ELLA program combines a first mortgage, funded through proceeds from the sale of variable or fixed rate tax-exempt private activity bonds, with a second mortgage, provided through HDC corporate reserves, as of right "4%" Federal Low Income Housing Tax Credits, and other subsidies, to produce housing affordable to those earning less than 60% of New York City's Area Median Income (AMI). HDC’s ELLA Program requires the same affordability tiers as HPD’s ELLA Program.
Multifamily New Construction
100 Gold Street, Room 9I-5