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Terms of Project Set-Aside

Listed below are the features and eligibility requirements of SONYMA's Project Set-Aside program:

Features:

  • Empowers home builders to market their development as eligible for SONYMA financing;

  • SONYMA will be able to finance more units in the development.

Eligible Properties must:

  • Be one of the following property types:

    • One-family home (including condominiums, PUDs, homeowners's associations, cooperatives, and double-wide manufactured housing permanently attached to real property); or

    • Two-family home located in a Target Area.

  • Be located in New York State;

  • Have a sales price that does not exceed SONYMA's Purchase Price Limits (click here to see Purchase Price Limits for your area);

  • Not be used for any business or commercial purpose;

  • Be a maximum of 5 acres (exceptions can be made on a case-by-case basis);

  • Have at least 500 square feet of living space;

  • Not have deed restrictions or other provisions that would impair SONYMA's ability to sell the property in the event of foreclosure or deed-in-lieu of foreclosure;

  • Meet SONYMA's project requirements, if a condominium or cooperative. (Click here to see the project requirements for condominiums and cooperatives.)

Eligible Borrowers must:

  • Meet SONYMA's credit underwriting guidelines (SONYMA accepts most decisions from Fannie Mae's Desktop Underwriter® and Freddie Mac's Loan Prospector®.);

  • Contribute a minimum of 1% (3% on cooperatives) of their own funds into the transaction;

  • Be a first time homebuyer (have not had an ownership interest in their primary residence at any time during the three years prior to the date of the SONYMA mortgage application AND does not currently own a vacation or investment home). (See the related question below about Target Areas.);

  • Meet SONYMA's Household Income Limits (click here to find the Household Income Limits for your area).

Obtaining a SONYMA Project Set-Aside Approval

The following documents must be submitted to SONYMA in duplicate (2), if applicable to your development:

  • Fully completed SONYMA Project Set-Aside application (Click here for Application form);

  • Dated and approved Offering Plan (inclusive of operating budget);

  • Appraisals (master or unit - not more than 6 months old) (if a PUD, the PUD Addendum must be attached);

  • Fully completed condo or coop questionnaire;

  • Promotional literature;

  • Engineer's report (asbestos report), if a rehab;

  • Letter of Intent from a SONYMA participating lender (Click here to obtain a list of participating lenders);

  • Grant documentation;

  • Professional property management agreement;

  • Additional documents may be required depending on project type.

For additional information, please e-mail us at projectsetaside@nyshcr.org

Consider developing a project in a Target Area

Federal law allows SONYMA to provide certain special incentives for applicants purchasing homes in Federally designated Target Areas. SONYMA is committed to helping rebuild these neighborhoods. The incentives are as follows:

  • Applicants do not have to be first-time homebuyers;

  • Household Income and home Purchase Price Limits are higher; and

  • Two-family newly constructed homes are eligible.

To find out if a property is located in a Target Area, call SONYMA's Information Center at 1-800-382-HOME (4663) with the exact street address, city or town, and zip code.

To access our most recently updated Project Set-Aside Approval List, click here.

Last updated: 03/11/14