Nonprofit Sponsors & Developers

One of the most unique aspects of our organization remains relevant today - the long-term relationship we have developed with scores of nonprofit community groups in all five boroughs. Many New York City nonprofits have built their capacity and financial strength through their affiliation with the Housing Partnership. We are well-positioned to advise and assist nonprofits on financial and organizational management issues. Among the services we provide are:

• Plan and budget reviews
• Coordination of financing partners
• Land-use compliance
• Marketing and outreach strategies
• Reviewing homebuyer eligibility and closing documents

With the decrease in the availability of City-owned land, many nonprofit housing organizations have recently ventured into development roles to create their own project pipelines and lines of business. Yet, they often lack the organizational capacity to effectively and efficiently serve as developers. We help them set up effective project management systems, outlining the specific tasks that are required in all phases of development. Our involvement improves their operational capacity and therefore augments their ability to provide housing.

Securing Subsidies

As part of its intermediary role, the Housing Partnership secures approximately $15 million in state Affordable Housing Corporation subsidies annually for affordable homeownership developments, including those in which nonprofit groups act as co-developers. Without these state subsidies, available for households earning less than 130% of AMI, most developments would simply be unaffordable to target markets.

Subsidy applications for each project are lengthy and complex, requiring the submission of design drawings, environmental studies, budgets, and project timelines. Our strong relationship with the state Affordable Housing Corporation and experience in submitting comprehensive applications on behalf of a project enhances the ability of nonprofit housing developers and organizations to successfully accomplish affordable development deals, gain experience and exposure, and fulfill their community and economic development objectives. We are currently working with more than 10 nonprofit groups on securing state subsidies to make their affordable housing projects feasible.

Budget Analysis/Deal Structuring

As part of our intermediary status, we play a critical role in analyzing the budgets for proposed affordable housing developments. We improve the efficiency of other nonprofits by working with them on project budgets. Our professional staff is skilled in completing pro formas with hard costs, soft costs and all line items included in construction development budgets. We are familiar with New York State and New York City rental and homeownership programs, and we have had extensive experience in structuring complex deals involving multiple financing sources.

We also share our knowledge of the market and comparable real estate deals with nonprofits, which has the added effect of providing lending institutions with a layer of comfort regarding a project’s financial feasibility. The Housing Partnership is often the entity upon whom bank and government lenders rely to hold the project and various lending sources together. We also assist nonprofits with understanding budgets so that they can bid out or choose the appropriate general contractors, make their deal more marketable, and actually bring the transaction to fruition. Finally, we work on the legal structuring and language for the transaction. Many of the proposed development deals initiated by nonprofits have been in the planning stages for years; once the Housing Partnership becomes involved, subsidies are obtained and construction loans for projects are typically closed within one year.

Nonprofit organizations are encouraged to contact the Housing Partnership at 646-217-3370 to discuss potential affordable housing developments.