Capital Partnership for Affordable Renovation (CPAR) Loan Program  

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Capital Partnership for Affordable Renovation (CPAR) Loan Program  

The Capital Partnership for Affordable Renovation (CPAR) Loan Program is a low-interest loan program for multifamily building owners requiring moderate rehabilitation work. The program is designed to assist building owners to improve building conditions and facilitate the preservation of safe, affordable housing for low- and moderate-income New Yorkers.

HPD is partnering with select lenders to complete portions of the loan application and development process, increasing HPD’s capacity for closing loans. This program is most suitable for buildings that have the ability to support a new mortgage to, in part, address their capital needs along with HPD subsidy. Buildings that qualify for this program must also have moderate rehabilitation needs.   

On behalf of HPD, Participating Lenders will evaluate projects for eligibility and feasibility, conduct all underwriting and other analyses, and prepare the documents for submission and approval by HPD, and will liaise between a borrower and HPD and track project progress. Participating Lenders must enter into an MOU with HPD to be a Lender in this program. Current participating lenders are Community Preservation Corporation (CPC) and the Local Initiatives Support Corporation (LISC).

 Program Overview  

The Capital Partnership for Affordable Renovation loan program relies on a mix of HPD subsidy and private financing. The maximum subsidy permitted is $80,000 per unit and the 30-year loan is provided at a below-market interest rate. Projects are generally eligible for a full or partial property tax exemption. Loan recipients will enter a regulatory agreement for at least the term of the loan and/or tax exemption. The agreement sets limits on allowable rents and initial household incomes and requires units to be rent-stabilized.   

For more information on the loan terms, see the Capital Partnership for Affordable Renovation Term Sheet.  

For Lenders interested in entering into an MOU to become a qualified lender in the program, please contact CPARloans@hpd.nyc.gov.  

Eligible Buildings  

  • Buildings with 3 or more apartments are eligible if rents average 80% AMI and below for rentals. HDFC Coops may apply and will be subject to income and sales restrictions with a maximum of 120% AMI for future sales. The proposed scope of work must meet HPD’s moderate rehab criteria; projects requiring substantial rehabilitation are not eligible.

  • Eligible owners may include limited partnerships, corporations, joint ventures, limited liability companies, 501(c)(3) non-profit corporations, housing development corporations, and individual owners including homeowners. 

  • Buildings receiving federal financing (including tax credits), requiring acquisition, or with project based project-based vouchers are ineligible for the program among select other characteristics.

  • Applicants must apply to Capital Partnership for Affordable Renovation loan program through HPD’s Participating Lenders.

Process 

  • Application: Complete the application materials on one of our Participating Lender websites:
  • Building Assessment: An HPD pre-qualified third-party firm will conduct a roof-to-cellar assessment of the physical conditions and energy efficiency needs of your building ("Integrated Physical Needs Assessment" or “IPNA”). The amount of the loan will be based on the efficiency and renovation work identified through the assessment. 
  • Scope of Work Development: Depending on the needs of your building, a third-party architect will complete a scope of work in accordance with HPD specification to be bid out to contractors of your choosing. 
  • Bidding: HPD recommends bidding the scope to at least three contractors of your choosing (HPD cannot recommend any contractors). A third-party architect will review and recommend a bid, reviewed for cost-reasonableness by the lender. The lender will review and approve the contractor who will also need to pass HPD’s sponsor review process. 
  • Loan Closing: Once the due diligence process is complete and HPD approves all required documents, the loan closing will take place. 
  • Construction: A third-party Construction Monitor in partnership with HPD will monitor the construction process to ensure adherence to the scope of work and HPD specifications.  

Resources 

Integrated Physical Needs Assessment