HPD will consider requests for HPD consent to the sale or transfer of property or an interest therein that is subject to an HPD restriction. HPD’s consent may be required by one or more of your contracts with HPD, your corporate documents, or the law. Please note that the following guidance and forms are intended for properties that are not currently in HPD’s Development Pipeline.

Please review and complete the Consent to the Sale or Transfer of Property Request Form and submit your request via email to AMtransactions@hpd.nyc.gov.

Please note the following:

• HPD’s review of the request may result in HPD placing conditions on the sale or transfer or denying consent to the transaction as proposed.
• Requests will not be processed until all required items listed above are received.
• HPD may require additional documentation after review of the items requested in this request form.
• Please allow up to 90 days for processing from the date we receive all required documentation. Processing time may be longer during peak closing season months (November-December, May-July). Owners are encouraged to make requests early in order to account for potential delays.
• Requests that will require public approvals (e.g., City Council or Mayoral approvals) will take longer.

If you wish to obtain a Payoff Letter that outlines your financial obligation to satisfy your HPD mortgage or are seeking a Satisfaction of your HPD mortgage, please complete the Mortgage Payoff / Satisfaction /Release Request Form and submit your request via email to mtgsatisfact@hpd.nyc.gov.

Please note the following:

• Requests will not be processed until all required items are received.
• HPD may require additional documentation after review of the items requested in this request form.
• Please allow up to 20 days for processing from the date we receive all required documentation. Processing time may be longer during peak closing season months (November-December, May-July). Owners are encouraged to make requests early in order to account for potential delays.

HPD will consider requests for subordination of loans, security agreements, regulatory and land disposition agreements after a thorough review. HPD will not be responsible for any additional fees or expenses due to the processing of the subordination request.

Please complete the Subordination / SNDA Request Form, along with required items and submit your request via email to AMtransactions@hpd.nyc.gov.

Please note the following:

• Requests will not be processed until all required items are received.
• HPD may require additional documentation after review of the items requested in this request form.
• Please allow up to 30 days for processing from the date we receive all required documentation. Processing time may be longer during peak closing season months (November-December, May-July). Owners are encouraged to make requests early in order to account for potential delays.
• The Loan-to-Value (LTV) of the Project must not exceed a maximum of 80%.
  • This includes all debt on the property including any enforcement mortgages divided by the property value ascertained by an as-is appraisal report from a reputable 3^rd party appraiser within the last 6 months of the subordination request.
• Debt Service Coverage Ratio (DSCR) - inclusive of all debt on the property - must meet or exceed 1.15 or 115%.
  • The DSCR is calculated as the year’s Net Operating Income (NOI) divided by total annual debt service (including enforcement mortgages, small business loans, etc.).
• Income-Expense Ratio – must meet or exceed 1.05. or 105%.
  • The Income Expense Ratio is calculated as Net Revenue divided by (Operating + Financial Expenses).
    Note: HPD does not factor-in bad debt/allowances into revenue or expenses when calculating the Income-Expense Ratio.
• If the Interest Rate of the proposed new financing/ debt is variable, it must have a ceiling rate.
  • The highest possible rate must allow for a DSCR of 1.15 or 115%.
  • The Interest Rate and other terms of the proposed financing should be clearly stated in the Commitment Letter or similar document.
• HPD retains the right to subordinate or to not, to the new financing/debt and/or a Letter/Line of Credit.

Disclaimer: Note that these are general guidelines and do not fully encompass our underwriting standards. HPD reserves the right to request additional supporting (notarized) documentation for subordination requests.