At the close of 2020, The Section of Housing Preservation and Development (HPD) declared that they will be rescinding the Privately Financed Economical Senior Housing (PFASH) Expression Sheet initially issued on July 18, 2019, which facilitated the development of Economical Impartial Residences for Senior (AIRS) positioned within a privately financed venture. The AIRS plan was created in March 2016 to stimulate the enhancement of cost-effective housing for seniors and permitted boosts in zoning flooring region under the NYC Zoning Resolution for the generation of these types of units.
HPD stated in the formal announcement that this method is “not appropriate with other agency priorities, including guaranteeing that Privately Financed Houses produced by MIH are open to all profits-suitable New Yorkers.”
HPD additional announced that in purchase to vest less than the PFASH System prior to its sunset, the next have to happen:
- A developer ought to post to HPD by no afterwards than March 30, 2021, Equally (a) a whole established of constructing drawings and supporting paperwork, as outlined in the HPD BLDS New Design Design and style Overview Submission Checklist, that are designed to a level reliable with that of DOB Plan Critique Submission, and (b) submission of an software for the building of AIRS models and
- The Project’s PFASH closing and execution of an reasonably priced housing regulatory arrangement need to arise no later on than June 30, 2021.
HPD’s has advised that there will be NO EXTENSIONS for either deadline.
It ought to be noted that the rescission of the PFASH Phrase Sheet does not affect the advancement of assignments utilizing the Senior Very affordable Rental Apartments (SARA) Application, which provides funding in the kind of small curiosity financial loans to help the construction and renovation of inexpensive housing for seniors.
Notwithstanding the Town slicing again on the help for economical housing offered below the PFASH, there are incentive systems readily available for household growth less than the Economical Housing New York Method (“421-a (16)“) and the Inclusionary Housing Courses (IHP), which have not been impacted by the PFASH cutback.
The 421-a (16) plan is an as-of-correct, partial-exemption program necessitating that at minimum 25 % or 30 %  of the residential units in a rental challenge be reasonably priced housing models, and can final result in actual estate tax exemption positive aspects for rental initiatives for a period of up to 35 many years post building. In addition, there is an selection that applies to homeownership jobs for which eligible jobs can receive gains for a interval of up to 20 a long time post construction. IHP involves a proportion of a project’s ground space to be set-aside for reduced-money economical housing tenants, ensuing in a ground location bonus for suitable assignments. A developer could make use of both equally applications concurrently for specific new design projects.
Given that the 421-a (16) method offers that complete added benefits are obtainable only if no extra than 12 percent of the square footage is non-qualifying as residential house, the 421-a (16) method is typically coupled with the Industrial and Commercial Abatement Program for professional area in excess of the 12 p.c threshold permitted less than 421-a (16) or with the Food Retail Expansion to Assistance Overall health (Fresh new) program which can result in a ground region bonus for the undertaking and could be suitable for added authentic estate tax abatements by way of the New York City Industrial Growth Company.