For many of New York City’s families, living alone in their single family house has become impractical as well as unaffordable. To compensate, many have turned to renting the extra space in their homes to other families in order to make ends meet. Although this trend is well natured in spirit, many houses just do not have the utilities and infrastructure necessary to accommodate more than one family. In addition, many of these houses fail to meet New York City’s legal standards for homes with multiple families.
As a result, AAFE Community Development Fund has created the Conversion Loan program with the goal of allowing homeowners to convert one-family dwellings into legal, safe two-and three-family dwellings. This loan product offers up to $50,00 for conversions that will bring illegally converted homes into compliance with building and fire safety codes, increase the affordability of homes for lower-income homebuyers through the generation of rental income, and increase the availability of affordable rental housing for low-income immigrant families.
Loan Purpose: To pay for the costs of making single family homes into two-or three-family homes.
Loan Maximum: $5,000 to $50,000
5% for households with income at or below 120% of New York City’s area median income (AMI)
6% for households with income above 120% of AMI
Note: A 3% rate is available to seniors over the age of 62, the disabled, and their families.
To qualify for this loan, a prospective client must meet all of the following criteria:
- Own a 1-family home in one of the five boroughs ofNew York City.
- Meet the income eligibility requirements.
How can I apply?
If you are eligible and would like to apply please Contact Us or