HFA's Mitchell Lama Rehabilitation and Preservation (RAP) Program offers flexible, low-cost financing to help lower debt service payments for Mitchell Lama owners. This financing is aimed at freeing up resources for capital improvements and building renovations. In exchange, owners are required to keep rents affordable for an additional 40 years.
HFA started the RAP program because many of New York State's Mitchell Lama projects were built in the early years of the program and are now in need of major repairs.
HFA will finance RAP loans from a number of sources, including tax-exempt private activity bonds; federal Low-Income Housing Tax Credits; tax-exempt 501(c)(3) bonds for eligible nonprofit organizations; taxable bonds; and HFA's available resources.
Repairs and capital improvements could include fixing components in need of immediate repair or replacement; replacing obsolete infrastructure; upgrading facilities to meet applicable new federal, state or local housing or building codes; and improving their buildings' energy efficiency.
HFA also offers Second Mortgage "Subsidy Loans." These loans provide subordinate, low interest rate subsidy loans to projects which are receiving construction and/or permanent financing from HFA and which require subsidy to maximize the number of affordable units and to reach lower income or special needs populations.
Click here to obtain a term sheet with details on HFA's Second Mortgage "Subsidy Loan."
In addition to the RAP program, HFA has up to $15 million available to fund zero-interest immediate repair loans to nonprofit owners of state-financed Mitchell Lama projects. Mitchell Lama projects that receive these loans are also eligible for the RAP program.
Grants from the New York State Energy Research and Development Authority (NYSERDA) are also available to owners participating in the RAP program in order to make the projects more energy efficient.
To obtain a term sheet for details on the RAP program, click here.
Last updated: 11/30/2009 3:02:52 PM