The Low-income Housing Tax Credit Preservation Program (Year 15) is available to city-assisted tax credit properties originally developed through New York City’s Department of Housing Preservation and Development’s (HPD) disposition programs at the end of their initial tax credit compliance period. The Year 15 Program provides technical assistance to building sponsors to develop a strategy for tax credit investor exit review, also known as repositioning, which takes place in the final year of a city-assisted project. The assessment may indicate that the building needs additional funds to improve its financial or physical condition. Repositioning strategies may include extensions or modifications of existing mortgages, securing additional subsidy through debt, use of nine percent or four percent tax credits, or benefits associated with the inclusionary housing program.
If assistance for the project is needed, the Year 15 Program can provide loans of up to $15,000 per residential unit. Loans are issued as 30-year repayable balloon mortgages with zero-percent interest rates. All projects are expected to receive some form of a 420-c tax exemption as well. After repositioning, sponsors must extend the affordability period through the latter of either the term of any additional mortgage provided, or 15 additional years from the current restriction period.