Testing the assumptions under all applicable affordability options is important. HPD provides tools and calculators allowing developers to compare affordability options, select the appropriate unit mix, work through floor-by-floor allocation, and set monthly rents at appropriate levels.
Lenders want certainty. However, it is not possible under the new rules to obtain a preliminary certificate of eligibility or any other confirmation from the City assuring that the project would qualify for tax benefits. In this environment of uncertainty, we recommend obtaining a letter of eligibility from an expert in the field of tax exemptions.
Most affordability options may be combined with other incentives granted to mixed-income developments (e.g. 4% tax credits (LIHTC), Inclusionary Housing, etc.)
The new program requires that the marketing of affordable apartments commences at least 7 to 9 months prior to completion date. It is crucial to prepare for the marketing process as early as possible.
We understand that many of the points outlined above require further exploration.
Do not hesitate to contact us to discuss your project in detail.