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Multifamily Development Financing

HFA has adopted Mandatory Green Building Guidelines that explain the minimum green building standards for all HFA financed projects funded on or after June 1, 2017. Click here to view these guidelines.

Horizons at Fishkill was constructed with $6,975,000 in HFA financing, as well as HFA subsidy funds. The 107-unit, all-affordable apartment complex for seniors is located in Dutchess County.

The New York State Housing Finance Agency (HFA) offers financing to create and preserve affordable multifamily rental housing throughout the state. Developers can take advantage of several financing resources. These include agency-issued bonds-which can be tax-exempt, taxable or 501(c)(3) bonds-Low Income Housing Tax Credits; and subsidy loans.

HFA offers financing to encourage a wide range of affordable housing:

  • New construction of multifamily rental housing for affordable households of all ages. There are Federal income restrictions for eligible households, adjusted for family size. Multifamily housing can consist of projects made up of 100% affordable units or mixed-income projects in which at least 20% of the units are reserved for low-income tenants.

  • Preservation and rehabilitation of existing affordable multifamily rental housing. Housing that was initially financed through federal and/or state programs, such as federal Section 8, Section 236, Section 202 and Low Income Housing Tax Credit programs, are eligible.

HFA Financing Programs

  • All Affordable Housing Program offers financing to private and not-for-profit developers to encourage the creation and preservation of multifamily affordable rental housing. Read more.

  • Mitchell Lama Rehabilitation and Preservation (RAP) Program provides flexible, low-cost financing to owners of state-financed Mitchell Lama developments who, in return, agree to keep rents affordable and rehabilitate their properties. Read more.

  • 80/20 New Construction Housing Program provides financing for the creation of affordable multifamily rental housing in high-cost rental markets such as New York City. A minimum of 20% of the units in a financed project must be set aside for low-income families. The remaining units can be rented at market rates. Read more.

  • Taxable Mortgage Initiative (TMI) provides alternative multifamily housing financing that does not rely on bond financing. Under TMI, HFA originates a mortgage and note, which are then assigned to a participating construction lender. Upon construction, completion and stabilization, the mortgage is assigned to a permanent lender. Read more.

  • Second Mortgage "Subsidy Loans" provide subordinate, low interest rate subsidy loans to projects that receive construction and/or permanent financing from HFA and which require subsidies to maximize the number of affordable units and to reach lower income or special needs populations. Read more.
  • 501(c)(3) Bond Financing provides financing to 501(c)(3) not-for-profit organizations, which are playing an increasing role in providing affordable housing opportunities for New Yorkers. This type of financing is available for both new construction and preservation. Read more...

Other Potential Financing Resources

  • Low Income Housing Tax Credits (LIHTCs) are available as-of-right to developers who finance their projects with Federal tax-exempt private activity bonds issued by HFA (except for 501(c)(3) bonds issued for not-for-profit developers).

  • NYSERDA: Financial assistance is available from the New York State Energy and Research Development Agency (NYSERDA) for projects that promote energy efficiency.

  • Credit enhancements: All HFA bonds, and HFA mortgages that pay off agency bonds, must be secured by a form of credit enhancement. Credit enhancement provides security for the holders of HFA bonds and insures an investment-grade rating for the bonds. HFA's sister agency, the State of New York Mortgage Agency (SONYMA), provides credit enhancement through its Mortgage Insurance Fund for many HFA mortgages.

How to Become an HFA Developer

For more information about:

  • financing new or existing multifamily rental housing, all-affordable, 80/20 or senior rental housing projects
  • financing the renovation of an existing multifamily rental or Mitchell Lama housing project


Roger Harry
(212) 872-0506

Note: For those seeking apartments, please refer to the following link by clicking here