Small Buildings Loan Program

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.

Eligible Applicants:

  • For Profit owners, Not- for-profit owners, and homeowners 
  • Principals must have acceptable credit (no pending collection actions, foreclosures, etc.) 

Eligible Properties:

  • 1 to 20 units (includes owner occupied 1-4 unit properties)
  • SROs
  • At least 50% Residential
  • Privately owned (developer may have building in contract of sale)
  • All taxes must be current at the time of closing

Eligible Rehab Activities:

  • Moderate or Gut Rehabilitation, vacant or occupied
  • Generally in excess of $15,000 per unit
  • All necessary work to bring a building up to housing and building codes
  • Commercial space (envelope only)


  • City Funding is blended with private financing
  • City uses City Capital funds (1% with 30 year term) and/ or Federal HOME Grant Funds Program

Requirements and Conditions:

  • For-profit owners must contribute 10% of project cost in equity
  • Not-for-profit owners must contribute 2% of project cost in equity
  • Apartments in buildings with 3 or more units are placed under the NYS Rent Stabilization system
  • Rents are set at market rate
  • Real property taxes may be eligible for abatement through the J-51 program, or for one and two unit buildings, through the 421-b program

PHONE NUMBER: (212) 863-6447

Download application for Small Buildings Loan Program (in PDF)

Click here to learn about other building rehabilitation loans