The Mixed Middle Income program (M2) funds the new construction of multi-family rental housing affordable to low-, moderate-, and middle-income families with annual incomes of up to 165 percent of the Area Median Income (AMI). Under this initiative, 20 percent of the units in a new development must be reserved for low-income households earning less than 50 percent of the New York City AMI, with at least 15 percent of these low-income units set aside for very low-income families earning less than 40 percent of AMI. A minimum of 30 percent of the units would be set aside for moderate-income households earning between 80 percent and 100 percent of AMI. A maximum of 50 percent of the units would be set aside for middle-income households earning between 130 percent and 165 percent of AMI.
In order to be eligible for capital funds, it is required that a borrower be a Housing Development Fund Corporation (HDFC) either alone or in partnership with for-profit developers, limited partnerships, corporations, trusts, joint ventures, or limited liability companies. New York City’s Department of Housing Preservation and Development (HPD) and Housing Development Corporation (HDC) provide financing, subsidies and mortgages, for this program. HDC combines a first mortgage, funded with proceeds from the sale of variable or fixed-rate tax-exempt bonds, with a second mortgage, funded with HDC corporate reserves. Funding may also come from private lenders, as well as state or federal sources.