The information on this page help to promote new construction and renovation of affordable housing. The different sections below offer Builders and Contractors resources they can use, such as how to partner with municipal governments and nonprofit grantees. Builders can find ways to receive funding to construct new homes and make necessary repairs to existing homes.

Project Set-Aside

A full range of community development and neighborhood preservation activities are offered to home builders, developers, and local community sponsors. eligible under Project Set-Aside. Projects may include the renovation of existing structures; both small or extensive new construction developments; conversion of lofts, factories, and school type buildings; mid and high rise condominiums and cooperatives; fee-simple townhouses; garden-style projects and standard subdivisions.

Through SONYMA's Project Set-Aside, you are given a powerful marketing tool by enabling them to offer low-cost, fixed-rate mortgages to qualified buyers. Project Set-Aside will approve a specific number of units in your development to be funded with SONYMA financing.

Project Set Aside Application Form

Program Features
  • Empowers home builders to market their projects eligible for SONYMA financing
  • SONYMA will be able to finance more units in the development

Eligible Property Types
  • One-family home (including condos, coops, and manufactured housing)
  • Two-family home located in a Target Area
  • Must be located in New York State
  • Have a sales price that does not exceed SONYMA's Purchase Price Limits
  • Not be used for any business or commercial purpose
  • Be a maximum of 5 acres (exceptions on a case-by-case basis)
  • Have at least 500 square feet of living space
  • Not have deed restrictions or provisions that would impair selling the property
  • Meet SONYMA's project requirements if a condominium or cooperative


Co-operative Requirements:

Co-Operative Questionnaire

  • Maximum financing of up to 95% of the value of the property. (Applicants must make a minimum cash contribution of 3% of the value of the property.);
  • Must be located in a project with a minimum of 10 units;
  • Must have at least 51% of the units in an existing cooperative project sold (or 40% in a cooperative conversion project or if the property is in a Target Area in New York City);
  • Must have at least 70% of the sold units in the project (excluding sponsor held units) occupied by their owners;
  • Underlying mortgage, if any, must have a remaining term of at least three years;
  • Must not be a recent conversion project with an eviction plan. (Existing projects with eviction plans are eligible for SONYMA financing.);
  • When determining if a home qualifies under SONYMA's Purchase Price Limits, the proportionate share (%) of the cooperative project's underlying mortgage must be added to the purchase price of the unit being purchased. The combination of the unit sales price and the percentage share of the underlying mortgage cannot exceed SONYMA's purchase price limit. (Click here to see Purchase Price Limits for your area.);
  • Must not be a limited equity cooperative project. Such projects, including Mitchell-Lama projects, are not eligible for SONYMA financing;
  • Must be managed by a professional management company experienced in managing cooperative projects. SONYMA will allow a cooperative project to be self managed if the shareholders have been managing the project for a minimum of ten years and at least 75% of the units are sold. The investor concentration cannot exceed 30% (based on the number of units sold).
  • Minimum square footage is 500;
  • Loans in cooperatives with flip taxes will generally be handled by reducing the sales price of the cooperative unit by the amount of the flip tax. The maximum loan amount will be 95% of the computed sales price.
  • A cooperative questionnaire is required. The questionnaire must indicate at minimum: (i) All information regarding building statistics (total number of units, total number sold, total number sold and owner occupied, total number sold and sublet, total number of shares, number of shares for the subject unit). (ii) If there a flip tax, describe the terms. (iii) Delinquency information regarding owner’s maintenance payments. (no more than 15%, can be more than 30 days delinquent). (iv) Tax abatement information if applicable (if applicable, expiration date is required). (v) Terms of the underlying mortgage. (vi) All pertinent information regarding the sponsor/holder of unsold shares (total number of units held, monthly maintenance, monthly rental income, has the 17 sponsor pledged any shares as collateral for any other loans. If yes, what are the terms, is the sponsor current on its obligations to the coop, etc). (vii) Is the sponsor or cooperative involved in any litigation? If yes, provide the dollar amount and the declaration page of the project insurance policy.
  • Pro Rata Share of underlying mortgage cannot exceed 35% of lower of sale price or appraised value based on the following calculation: Pro Rata Share of Underlying Mortgage < Sale Price/Appraised Value + Pro Rata Share of the Underlying Mortgage.
  • Commercial space cannot exceed 20%;
  • May require project approval by SONYMA and its mortgage pool insurer;

Condominiums requirements:

Condominium Questionnaire

  • Must be located in a project with a minimum of 10 units;
  • Must have at least 51% of the units in the project sold (40% if you are financing 90% or less of the value of the property or if the property is in a Target Area in New York City);
  • Must have at least 70% of the sold units in the project (excluding sponsor held units) occupied by their owners;
  • Commercial space cannot exceed 20%;
  • May require project approval by SONYMA and its mortgage pool insurer;
  • Must be managed by a professional management company experienced in managing condominium projects;
  • Minimum square footage is 500;
  • New conversion eviction plans are not eligible;
  • A condominium questionnaire is required. The questionnaire should disclose all information regarding phasing in the project, common areas and facilities, the control of the Homeowner’s Association (HOA), Unit Information (total number of units, owner occupancy and investor information), HOA dues delinquency information (no more than 15%, can be more than 30 days delinquent) If the project or sponsor is involved in any litigation, the terms of the contact with the managing agent, and, has all rehabilitation been completed (if the project is a condo conversion).

Energy Star® Homes

SONYMA has entered into a partnership with the New York State Builders Association (NYSBA), the New York State Energy Research and Development Authority (NYSERDA), and the Long Island Power Authority (LIPA) to offer a special incentive for purchasers of newly constructed homes. Energy-efficient homes, specifically New York ENERGY STAR® labeled homes, offer homebuyers all of the attributes available in a new home, but also include energy efficient improvements that deliver better performance, greater comfort, and lower utility bills. Such homes are built to Federal and State standards that may feature tighter draft-free construction and insulation, high performance windows, and efficient heating and cooling equipment, appliances, light fixtures, etc. New York ENERGY STAR® labeled homes are typically 20% to 30% more energy efficient than a standard home and can save homeowners hundreds of dollars annually. Energy efficient homes also help the environment by decreasing carbon gas emissions. Features and requirements of the ENERGY STAR® labeled homes incentive. Interest rates that are .375% lower than our standard interest rates for loans with down payment assistance   • Down Payment Assistance of $3,000 or 3% of the home purchase price (not to exceed $15,000). No points. 240-day rate lock. Available Programs for the New York ENERGY STAR® Labeled Homes product; to learn more about each of the below programs, click on the program listed:   • Achieving the Dream Mortgage Program   • Low Interest Rate Eligible Properties must be one of the following property types:   • Newly constructed one family home   • Newly constructed two family home located in a SONYMA Target Area Before registering your loan application with SONYMA, the participating lender will be required to do the following: Ensure that the contract of sale between the applicant and the builder clearly states that the home is being built in accordance with New York ENERGY STAR® Labeled Homes requirements. Verify with NYSERDA or PSEG of Long Island, as applicable, that the builder is a registered ENERGY STAR® builder. Prior to Loan Closing, the following steps must be taken: During the construction phase of your New York ENERGY STAR® Labeled Home, a certified third-party Home Energy Rating System (HERS) rater must perform an inspection of the home to ensure that it is being built to the New York ENERGY STAR® standards. A final home energy rating is performed near completion of the home.

Once the home is complete, the builder must submit documentation, including the final certification of the HERS rater, to NYSERDA’s Low-Rise Residential New Construction Program Implementation Contractor ( 

NYSERDA’s Implementation Contractor will review the builder’s incentive application and documentation to ensure that it is complete and meets application requirements, and forwards the application to NYSERDA for processing.  A Home Energy Rating Certificate (“HERC”) is usually included in the documentation.   

Lenders must request the HERC to demonstrate that the home has been built and tested to meet the New York ENERGY STAR® Certified Labeled Homes program requirements.  (Note: For individual units in mid-to-high rise cooperative or condominium buildings that have obtained an ENERGY STAR label through the Multifamily Performance Program a/k/a “MPP”, a building report can be requested from NYSERDA.  

Upon receipt of a report evidencing compliance with current New York ENERGY STAR Certified Home program requirements, the participating lender may close the loan and you will receive the special incentive interest rate offered by SONYMA.

Grant Assistance

Builders and contractors can also partner with municipal governments and nonprofit grantees that receive AHC grants to build new homes and make necessary repairs to existing homes. To take part in these partnerships, builders and contractors should contact eligible applicants or current grantees. AHC Grant Multi-family Development Financing 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 Grant 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. 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.