New York State Housing Development Fund

The Housing Development Fund (HDF) is a revolving loan fund program that provides interest-free interim loans to non-profit organizations to develop low-income housing projects. HDF loans last three years; eligible uses include pre-development costs, site acquisition, construction or rehabilitation financing, and other project development costs that are traditionally covered with a mortgage. The short-term financing provided through HDF is later repaid from the equity contributed by investors in low-income housing tax credit projects, or from any other program that is providing financing, whether a public or private source. HDF loans are divided into three categories: pre-development loans, acquisition loans, and construction loans.