The Small Buildings Loan Program provided loans for the moderate to gut rehabilitation of buildings containing between 1 and 20 units. Properties must have been at least 50 percent residential and privately owned. City Capital funds, loaned at one percent interest with a 30-year term, and Federal HOME Grant funds were combined with bank financing to produce a below-market interest rate loan. For-profit owners had to contribute 10 percent of project cost in equity, while non-profit owners had to contribute 2 percent of project cost in equity. Rents were set at market rate after rehabilitation is completed. Apartments in buildings with 3 or more units were placed under the New York State’s rent stabilization system.