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NYS HOME Program: Small Rental Development Initiative (SRDI)

NYS HOME Program: Small Rental Development Initiative (SRDI)
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Overview

The Housing Trust Fund Corporation’s (HTFC) Office of Community Renewal (OCR) Small Rental Development Initiative (SRDI) was designed to assist smaller buildings and single-family rental housing. Smaller rental projects tend to generate less revenue and are at high risk of financial instability due to vacancy. SRDI was designed to assist statewide non-profit owners of rental housing to acquire, rehabilitate or newly construct their own long-term affordable apartments. Considerations were made in the design to alleviate up-front costs of application.

SRDI helps to fund the development gap often present in neighborhoods where the appraised value may be less than the actual cost of development. The gap makes it very difficult for rental owners to meet typical construction financing loan to value requirements. Project planning and pre-development, hard costs, soft costs, developer fees, relocation, site improvements, connections to off-site utilities necessary to complete the construction or rehabilitation are eligible.  Projects may be single source funded with HOME, however leveraging of other funds is strongly encouraged. Federal HOME Program regulations require all non-HOME sources in the project to be firmly committed at the time of application for SRDI funds.

Forms & Documents

Eligible Projects

Funds may be used by a Developer-owner for the acquisition and/or rehabilitation or construction of affordable residential rental housing to serve low income families making less the 80% of Area Median Income (AMI).

HOME funds will be provided as deferred loans at zero percent interest, due on sale, and requires full repayment throughout the period of affordability (POA). The Developer-owner may request funds for construction or permanent financing. HTCF reserves the right to require amortization, principal only payments, or increased payments to reserves if cash flow from the operating budget is excessive.

The housing must be used for permanent or transitional low income rental housing as permitted by the HOME Final Rule.

The project may contain 2 to 25 units and consist of 1 or more buildings on a single site or multiple sites under common ownership, management and financing. Multi-phased rental development projects are also encouraged to apply. Permanent and transitional housing, including group homes and SRO’s are eligible.

The Developer-owner must be the sole and exclusive owner of the property during development and the required POA, typically 15 to 20 years. The project cannot be co-owned with another entity. The Developer-owner must own or will own the project in fee simple absolute title or have a long term ground lease that is at a minimum, equal to the term of the POA. The Developer-owner must manage or hire a property manager to oversee the long term management responsibilities of the rental housing throughout the required POA. The Developer-owner must be in charge of all aspects of development process to include: identification, procurement and oversight of contractors, negotiation of land use/permit approvals, obtaining zoning approvals, securing non-HOME financing as applicable, selecting architects, engineers, housing rehabilitation specialists, general contractors, etc., and must oversee the progress of all work paid with HOME funds and determine the reasonableness of costs. Developer-owners must demonstrate current or future site control.

Applicants must submit as a part of the Application, current ownership documentation such as a deed or future ownership documentation such as an executed purchase option.

Application Materials

SRDI Application and Webinar

NYS HOME Local Small Rental Development Initiative (SRDI) Application exhibits and attachments must be submitted via the CDOL system by 3:00 p.m. (EST) Wednesday May 24th, 2017Applications and supplemental materials received after the stated deadline will be considered a late submission and will not be accepted or reviewed.
 

Funding Opportunity Information

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