Resources for Landlords

RESOURCES FOR LANDLORDS

Landlords may appear on the Watch List if the New York City Department of Housing Preservation and Development (HPD) indicates that their buildings have a high number of outstanding housing maintenance code violations. To be included on the watch list, buildings with fewer than 35 units must have an average of at least three open B and C violations per unit and larger buildings must have an average of at least two open B and C violations per unit.

The Public Advocate's Office will remove landlords from the Watch List after a sufficient number of violations have been resolved with HPD to place them below the Watch List's qualifying criteria. The site is updated every two weeks based on available HPD data.

In order to remove your name from the Watch List you must resolve your open violations with HPD. If you have resolved violations or you believe that the information provided by HPD is not up-to-date, you can request to be removed from the list by contacting the Public Advocate's office at (212) 669-7200 or by sending an email to GetHelp@pubadvocate.nyc.gov.  Our office will then follow up with HPD to verify that the violations have been corrected and remove your building from the Watch List. We will only remove the building when HPD confirms that a sufficient number of violations have been resolved to place the building below the Watch List’s qualifying criteria.

Resources for resolving these violations can be found below.

Article 8A Loan Program

Article 8A Loans are generally limited to the upgrading or replacement of major building systems with an emphasis on energy items. In general, loans cannot exceed the actual cost of rehabilitation. Loans are available in amounts of up to $35,000 per dwelling unit with no maximum per building, subject to the availability of funds. Building condition and finances must demonstrate a need for funds, and owners must be unable to obtain financing privately. The interest rate is 3% with repayment in equal monthly installments and there is a prepayment surcharge within the first five years of the loan. The term of the loan may not exceed 30 years or the useful life of the improvements, whichever is less. There is a non-refundable application fee of $150.00 and a commitment fee equal to one (1%) of the loan amount payable at closing, plus a 1/2% legal fee. To learn more, contact program director Anna Frantz at HPD: (212)-863-8229.

Preservation Participation Loan Program (PLP)

HPD’s Preservation Participation Loan Program (“PLP”) was created to provide low-interest loans to private residential building owners for the moderate or substantial rehabilitation of housing for low-to-moderate income households. The program operates in conjunction with a group of pre-qualified participating lenders identified on the PLP Term Sheet found below. Borrowers are free to work with the participating lender of their choice. HPD provides 2nd mortgages in the form of City Capital or Federal HOME funds. Combined with bank or tax-exempt bond financing, the blended financing cost is below the market rate. Projects may be eligible to apply in HPD’s competitive rounds of the Federal Low Income Housing Tax Credits (LIHTC) and other sources of financing. HPD and the lenders collaborate in underwriting the loan, and all projects must meet HPD’s design and construction standards. Projects are encouraged to apply for and utilize other funding sources, such as Low Income Housing Tax Credits (LIHTC) and funds from the New York State Department of Housing and Community Renewal. During construction and after rehabilitation, real property taxes may be eligible for abatement. Allowable income levels and rents depend on the type of subsidy used and on the existing affordability restrictions already in place. Buildings are subject to affordability and use restrictions through a 30-year Regulatory Agreement and following rehabilitation all units are registered in the New York State Rent Stabilization system. To learn more, contact program director Chris Dewees at HPD: (212)-863-6408.

Small Owner Repair Program (SORP)

HPD’s Small Owner Repair Program provides funding for limited systems replacement and other key repairs in privately-owned multiple dwelling properties. Since participating owners often lack the resources to address building-wide problems, repair work done through the program addresses specific critical issues rather than general rehabilitation. The program provides a 10-year forgivable loan up to $10,000 per dwelling unit for buildings of three to 20 units. In exchange for this forgivable loan, owners will enter into a 10-year regulatory agreement with the City to ensure the financial viability, physical upkeep, and continued affordability of participating buildings. Tenant incomes must adhere to Federal income guidelines and rent limits apply. For more information about eligibility and terms, please download the SORP Term Sheet click here or contact Elizabeth Mercado, Program Director, at: (212) 863-6337.Preservation Participation Loan Program (PLP)

HPD’s Preservation Participation Loan Program (“PLP”) was created to provide low-interest loans to private residential building owners for the moderate or substantial rehabilitation of housing for low-to-moderate income households. The program operates in conjunction with a group of pre-qualified participating lenders identified on the PLP Term Sheet found below. Borrowers are free to work with the participating lender of their choice. HPD provides 2nd mortgages in the form of City Capital or Federal HOME funds. Combined with bank or tax-exempt bond financing, the blended financing cost is below the market rate. Projects may be eligible to apply in HPD’s competitive rounds of the Federal Low Income Housing Tax Credits (LIHTC) and other sources of financing. HPD and the lenders collaborate in underwriting the loan, and all projects must meet HPD’s design and construction standards. Projects are encouraged to apply for and utilize other funding sources, such as Low Income Housing Tax Credits (LIHTC) and funds from the New York State Department of Housing and Community Renewal. During construction and after rehabilitation, real property taxes may be eligible for abatement. Allowable income levels and rents depend on the type of subsidy used and on the existing affordability restrictions already in place. Buildings are subject to affordability and use restrictions through a 30-year Regulatory Agreement and following rehabilitation all units are registered in the New York State Rent Stabilization system.

NHS Loan Programs

HPD works with Neighborhood Housing Services’ local offices to provide repair loans to owner-occupied 1- to 4-family homes. To learn more, contact David Elmaleh at HPD: (212)-863-6429.

J-51 Tax Incentive Program (TIP)

J-51 Tax Incentive Program is an as-of-right tax exemption and abatement for residential rehabilitation or conversion to multiple dwellings. Eligible projects include HPD-financed moderate and gut rehabilitation of multiple dwellings; Privately-financed moderate and gut rehabilitation of multiple dwellings; Privately-financed and governmentally-assisted major capital improvements to multiple dwellings; Conversions of lofts and other non-residential buildings into multiple dwellings. Obtain additional information and request an application by calling (212) 863-5517.Loan Opportunities at HPD Neighborhood Offices

HPD offers a range of below market financing products to help low- and moderate-income homeowners renovate and improve their properties and to help the owners of multifamily buildings preserve affordable units.

Loan Programs for 1-4 Family Homes

• Loan Amounts: $5,000-$40,000 per dwelling unit
• Interest rates: 1%-5% per year
• Program Requirements: Owners must be low- to moderate-income owner-occupants.

Programs for Multifamily Dwellings

• Loan Amounts: $10,000-$75,000 per dwelling unit
• Interest rates: 1%-3% per year
• Program Requirements: Building must be affordable to low- to moderate-income families. Owners must sign a regulatory agreement that requires compliance with HPD affordability standards and Rent Stabilization Guidelines.

For more information, please visit HPD’s Neighborhood Offices.

To learn about all HPD financing programs, visit: http://www.nyc.gov/html/hpd/html/developers/finance.shtml.