The New York Housing Fund’s maximum loan amount is typically capped at 85% of a project’s total development cost, contingent on meeting equity requirements and compliance with affordability standards. This limit ensures projects remain financially sustainable while prioritizing public investment in affordable housing.

The cap of 85% balances public funding thresholds with private sector risk-sharing. For example, in 2022, the New York City Housing Development Corporation (HDC) reported that loans under the New York Housing Fund averaged $25 million to $50 million for mixed-use developments, with total project costs ranging from $100 million to $200 million. This aligns with the 85% guideline, as the loan amount never exceeds 85% of the total cost. The requirement stems from the City Council’s mandate to prevent over-reliance on public dollars, ensuring projects attract sufficient private equity. Data from the New York City Department of Housing Preservation and Development (HPD) shows that projects funded by the New York Housing Fund must raise at least 15% equity from private sources, often through low-income housing tax credits (LIHTC) or investor contributions. This structure, codified in the HDC’s 2023 loan guidelines, maintains affordability by limiting public subsidy and encouraging market-rate revenue streams. Recent case studies, such as the 2023 development of the 200-Third Avenue affordable housing complex, demonstrate adherence to this cap: the HDC provided a $35 million loan for a $50 million project, representing 70% of total costs. Such metrics underscore the Fund’s role in scaling affordable housing without compromising fiscal prudence. The 85% threshold remains a cornerstone of New York’s affordable housing finance framework, ensuring scalability and long-term viability while meeting legal and policy objectives.