NEW YORK — New York City Mayor Eric Adams, Molly Park, Acting Commissioner of the New York City Department of Social Services (DSS), President of the New York City Housing Development Corporation (HDC) Eric Enderlin and John, Managing Partner of SeaChange Capital Partners MacIntosh announced on Wednesday the launch of a $1 million shelter acquisition and development fund for non-profit homeless service providers to build, owning and operating refuges.
The revolving fund will ease the upfront financial burden that often prevents experienced, mission-driven 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 philanthropic investment capital linked to the program organized by SeaChange Capital Partners. The $15 million total will fund up to 10 new shelters during the initial four-year phase and will continue to fund additional projects as the loans are repaid.
The shelter fund contributes to the Adams administration’s goal outlined in “Housing Our Neighbors: A Blueprint for Housing and Homelessness” to replace outdated and unsanitary shelters with high-quality shelters that provide better conditions for residents.
“One of our main goals set out in our housing and homelessness plan was to replace outdated and unsanitary shelters with better quality facilities. This $15 million in funding will help the Department of Social Services and its nonprofit partners provide a more stable residential environment for adults seeking to improve their lives and for children in this system as they pursue their studies,” said Mayor Adams. “I also want to thank the philanthropic community for providing much-needed seed funding so that this revolving acquisition fund can continue to grow throughout this administration and beyond.”
The shelter fund will facilitate the establishment of non-profit 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) Shelter Requests for Proposals are eligible to apply for the fund.
Some nonprofits may receive pre-development loans of up to 130% of project costs to cover site acquisition and other pre-development costs.
The funds will then be donated to the housing fund, allowing the $15 million investment to support multiple projects over time.
“The launch of the $15 million Housing Acquisition and Development Fund is a step forward in the fight against 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 much needed capital. This initiative is a clear example of how public-private partnerships can come together to solve complex social problems and help those in need.”