NEW YORK — New York City Mayor Eric Adams, New York City Department of Social Services (DSS) Acting Commissioner Molly Park, President of the New York City Housing Development Corporation (HDC) New York City Eric Enderlin and SeaChange Capital Partners Managing Partner John MacIntosh announced Wednesday the launch of a $1 million shelter acquisition and development fund for nonprofit homeless service providers to build, own and operate shelters.
The revolving fund will ease the initial financial burden that often prevents experienced, mission-driven nonprofit homeless service providers from developing and owning their own shelter sites.
The refuge fund will combine $5 million in city resources with $10 million in program-related philanthropic investment capital organized by SeaChange Capital Partners. The total of $15 million will finance up to 10 new shelters in the initial four-year phase and will continue to finance additional projects as loans are paid off.
The shelter fund furthers the goal of the Adams administration outlined in “Housing Our Neighbors: A Blueprint for Housing and Homelessness” to replace outdated and substandard shelters with high-quality shelters that provide better conditions for residents .
“One of our main goals outlined in our housing and homeless plan was to replace outdated and substandard shelters with better, high-quality facilities. This $15 million funding will help the Department of Social Services and its nonprofit partners provide a more stable shelter environment for adults seeking to improve their lives and for children in this system as they continue their education,” the Mayor said. Adams. “I also want to thank the philanthropic community for providing much-needed seed money so that this revolving acquisition fund can continue to grow throughout this administration and beyond.”
The shelter fund will facilitate the creation of non-profit owned shelters by covering acquisition and pre-development costs that must be paid prior to contract registration. Projects that have been selected through the New York City Department of Homeless Services (DHS) Requests for Proposals for shelters may apply to the fund.
Select nonprofit organizations may receive pre-development loans for up to 130 percent of the costs associated with the project to cover site acquisition and other pre-development costs.
The funds will then be returned to the housing fund, allowing the $15 million investment to support multiple projects over time.
“The launch of the $15 million home acquisition and development fund is a step forward in addressing homelessness in New York City,” said New York State Senator Luis Sepúlveda. “By easing the initial financial burden on nonprofit homeless service providers to develop and own their own shelter sites, the fund will help create high-quality shelters that provide better conditions for residents. I commend DSS, HDC Chairman Enderlin and SeaChange Capital Partners Managing Partner John MacIntosh for their efforts in structuring and developing this fund and the private philanthropic sector for stepping up to provide the capital that so much is needed. This initiative is a clear example of how public-private partnerships can come together to solve complex social problems and help those in need.”