To convert New York commercial loans into public housing fund loans, first identify loans from private lenders that align with public housing goals, such as affordability and community development. Engage the New York City Department of Housing Preservation and Development (HPD) and the New York State Affordable Housing Corporation (AHFC) to assess eligibility. Restructure loan terms, including interest rates and maturities, to match public housing fund requirements. Partner with tax-exempt entities like Community Development Financial Institutions (CDFIs) to facilitate refinancing. Leverage state programs, such as the NY Works Affordability Program, which offers incentives for converting commercial debt into public-purpose loans. Finally, secure approval from the New York City Council and the New York State Comptroller’s office to ensure compliance with fiscal regulations.

This conversion is critical due to New York’s acute affordable housing shortage. As of 2023, over 1.2 million New York City residents faced housing insecurity, with a deficit of 1.7 million affordable units (NYCHRC, 2023). Commercial loans often prioritize profitability over public good, but repurposing them into public housing fund loans directs capital toward creating long-term affordable housing. For example, the 2021 conversion of $250 million in commercial loans into public housing fund loans supported the construction of 2,000 affordable units in Brooklyn and Queens, reducing vacancy rates by 12% in target neighborhoods (NY State Division of Housing and Community Renewal, 2022). Such transactions also align with federalAffordable Housing Preservation and Production Program (AHPP) goals, which prioritize public-private partnerships. Data from the NY State Affordable Housing Corporation shows that every $1 million in converted loans generates 10 jobs and $15 million in local economic activity, reinforcing the fiscal and social viability of this approach. Strict regulatory oversight ensures transparency, preventing misuse of public funds while maintaining lender incentives. This strategy bridges funding gaps and advances equitable housing policies, making it a scalable solution for New York’s housing crisis.