NSP Downpayment Assistance Now Available for StoreWorks Buyers

On Thursday, February 4, 2010, NHS Community Development Corp. (NHS CDC), a real estate subsidiary of Neighborhood Housing Services of NYC, announced a new downpayment assistance program to help buyers purchase NHS StoreWorks buildings. This program includes $1.4M in funds from the U.S. Department of Housing and Urban Development’s Neighborhood Stabilization Program (NSP). These funds were awarded to NHS CDC by the New York State Housing Finance Agency and applications are now available at:  www.nhsnyc.org/storeworks 

The StoreWorks Program:
In 1998, New York City Department of Housing Preservation and Development (HPD) designated NHS Community Development Corp. (NHS CDC) as the sole developer for StoreWorks; a program to rehabilitate tax- foreclosed mixed-use buildings owned by the City and restore them to private ownership and active use. The buildings generally consist of a storefront at street level with one to four apartments above. StoreWorks buildings are gut rehabilitated and sold to buyers who will either live in the building or operate a business there. Since 1998, the StoreWorks program has restored 105 buildings returning 285 residential units and 119 commercial units to productive use.

The NSP Downpayment Assistance Program will provide “soft second loans” of up to$200,000 per StoreWorks building. The loans will lower purchase prices to as little as $200,000 making it easier for homebuyers and live/work entrepreneurs to purchase. The program will also return vacant buildings to productive use, and spur investment in underserved neighborhoods hit hard by foreclosures.

To be eligible for the NSP Downpayment Assistance Program, buyers must reside in the building as their primary residence and meet the program’s household income limits. The loans dissolve after 15 years. Resale and rental restrictions apply. Business owners who intend to occupy only the storefront are still encouraged to buy StoreWorks buildings, however they are not eligible for NSP Downpayment Assistance. Byron Todman, Executive Director of NHS CDC remarked, “NSP Downpayment Assistance is a real opportunity for homebuyers and budding landlords looking to stay in these communities for the long term.”

For More Information:
NHS CDC currently has 17 StoreWorks buildings for sale that are eligible for this program. They are located in Brooklyn, Queens, and the Bronx. Interested buyers should visit the NHS Homes for Sale webpage below to browse property listings and to download an application. The application includes important instructions and program information for both the StoreWorks and the NSP Downpayment Assistance Programs.

For details and to download StoreWorks applications please visit this webpage:

www.nhsnyc.org/storeworks