Capitalize Albany Real Estate Loan Program

The Real Estate Loan Program provides financing to qualifying real estate development projects. This will support the revitalization of property and the retention and creation of jobs for City residents. Preferred projects include strategic properties that currently are vacant or underutilized and, with rehabilitation or construction, could have a positive revitalizing effect on the community. Loans may be used with other private and public funds. Capitalize Albany Corporation will take a subordinated collateral position to a private lender, provided there is adequate collateral. The program offers long term, fixed rate financing at below market interest rates. Loans may not exceed 40% of total project cost. Proceeds may be used for construction, fixed asset financing as well rehab costs related to tenant fit ups for new business locations or residential conversion costs for rehab projects. This includes acquisition of buildings, rehab costs, furniture, fixture and equipment, construction, expansion or conversion of facilities. Borrowers are expected to provide a minimum of 10% owner equity contribution.

To apply for this program,contact us.

Community Loan Fund of the Capital Region

The Community Loan Fund is a non-profit community development financial institution serving the Capital Region.  It serves as a community-based lender to expand access to credit and capital in disadvantaged communities.  Typical loans are given for the development of housing and other facilities, and can be used toward working capital, equipment, inventory, site acquisition, or new construction. Both short- and long-term loans are available, with a modest application fee, and loan applications may be submitted at any time. Entrepreneurs and community groups are encouraged to contact the Community Loan Fund early in the planning and development of an idea.  For more information, or to set up an appointment, call the Community Loan Fund at (518) 436-8586, or visit their website at www.mycommunityloanfund.org.  

Pursuit Lending

A number of loan programs are available through Pursuit to promote economic activity within New York State. Pursuit is a complement to conventional banking, working in partnership with banks to provide term loans, many of which do not meet the requirements for traditional financing. The goal is to be more creative in underwriting, often including multiple participations, SBA guarantees, flexible amortization and long-term payouts. Click here for more information. 

New York State Energy and Development Authority (NYSERDA)

Interest rate reductions are available on loans from participating lenders for energy efficiency improvements and renewable technologies.  For more information on all of NYSERDA Loan Funds go to www.nyserda.org or contact a local certified NYSERDA contractor at the Environmental Business Association of New York at (518) 432-6400 or go to www.eba-nys.org.

U.S. Small Business Administration (SBA) 504 Program

Used in conjunction with Partnership programs or conventional lending institutions, SBA 504 loans enable growing businesses to secure long-term, fixed-rate financing for major capital assets.  This low-cost second mortgage financing may be exempt from mortgage recording tax; 10- and 20-year terms are available.  Pursuit Lending is a local SBA certified lender and can be contacted at http://www.pursuitlending.com/. 

Downtown Living

Interest in living in downtown Albany remains strong. Financing for commercial and entrepreneurial residential developments can be secured through a variety of organizations and programs including Capitalize Albany Corporation’s Real Estate Loan Program, Community Preservation Corporation, Empire State Development Corporation, the City of Albany Industrial Development Agency, New York Office of Parks, Recreation & Historic Preservation, and the New York State Energy Research and Development Authority. These agencies administer a number of loan funds and offer tax incentives to assist in the development of both commercial and non-commercial residential projects.

Loan Programs

Community Preservation Corporation (CPC) is a private mortgage lender specializing in financing low-, moderate- and middle-income housing throughout New York and New Jersey. CPC lends for large and small apartment buildings, occupied or vacant, and for new construction developments. CPC is sponsored by 94 banks and insurance companies. There is a $100 application fee and an origination fee of 1-2% of loan amount. Loan products include, construction financing, permanent financing, Small Building Loan Program, and Preservation Financing for Cooperative Buildings.

Contact CPC for more information at (518) 463-1776 for more information.

NYSERDA provides Affordable loans for clean energy capital improvement projects and building upgrades. You can access low- or no-interest financing through New York State to fund building’s decarbonization projects. Learn more and contact NYSERDA at https://www.nyserda.ny.gov/PutEnergyToWork/Energy-Technology-and-Solutions/Financing-for-Buildings-and-Businesses/.

Tax Credit Programs

Federal Investment Tax Credit Program for Income Producing Properties
Owners of income producing real properties listed on the National Register of Historic Places may be eligible for a 20% federal income tax credit for the substantial rehabilitation of historic properties. The final dollar amount is based on the cost of the rehabilitation; in effect, 20% of the rehab costs will be borne by the federal government. The work performed (both interior and exterior) must meet the Secretary of the Interior’s Standards for Rehabilitation and be approved by the National Park Service.

New York State Tax Credit Program for Income Producing Properties
This tax credit must be used with the Federal Investment Tax Credit Program for Income Producing Properties. Owners of income producing properties that have been approved to receive the 20% federal rehabilitation tax credit automatically qualify for the additional state tax credit if the property is located in an eligible census tract. Owners can receive an additional 20% of the qualified rehabilitation expenditures up to $5,000,000. In order to qualify, the placed-in-service date must be after January 1, 2010. There is no application form. After the National Park Service approves Part 1 and Part 2 of the federal application, The New York State Office of Parks, Recreation, and Historic Preservation will issue a certification form allowing owners to take the state credit.

New York State Historic Homeownership Rehabilitation Tax Credit
Rehabilitation work on historic residential structures may qualify for a tax incentive. The credit will cover 20% of qualified rehabilitation costs of structures, up to a credit value of $50,000.00. Houses must be an owner-occupied residential structure and be individually listed on the State or National Register of Historic Places, or a contributing building in a historic district that is listed on the state or National Register of Historic Places. In addition, the house needs to be located in an eligible census tract. At least $5,000 must be expended on qualifying work. At least 5% of the total project must be spent on the exterior of the building. OPRHP prior to start of construction must approve all work.

For more information on the Federal and NYS Investment Tax Credit programs, including whether or not your property qualifies for either of the NYS Historic Preservation Tax Credit programs, contact Sloane Bullough at The New York State Office of Parks, Recreation and Historic Preservation at 518-237-8643, ext. 3252.

Real Property Tax Abatement Programs

The City of Albany Industrial Development Agency (IDA) and Capital Resource Corporation (CRC) has four available forms of assistance for commercial real estate projects. the IDA can provide real property tax abatements, mortgage recording and NYS sales and use tax exemptions.

The City of Albany CRC can provide access to low interest tax-exempt and non-tax-exempt conduit bond financing for qualifying projects. CRC operations are funded by applicant fees which are able to be reinvested back into the City of Albany through strategic programming and agreements with Capitalize Albany by supporting its grant programs. Choosing the local option for access to this financing allows your organization to further reinvest in the community.

As the City of Albany’s economic development organization, Capitalize Albany Corporation’s staff provides administrative support to the IDA/CRC under a professional services agreement with its senior staff serving as Agency officers.

485-a Residential-Commercial Urban Exemption Section 485-a of the Real Property Tax Law authorizes a declining 12-year partial exemption from real property taxation and special levies for non-residential property converted to a mix of residential and commercial uses. The application must be filed with the assessor on or before the applicable taxable status date. Once the exemption has been granted, the exemption may continue for the authorized period provided that the eligibility requirements continue to be satisfied. It is not necessary to reapply for the exemption after

485-a Residential-Commercial Urban Exemption
Section 485-a of the Real Property Tax Law authorizes a declining 12-year partial exemption from real property taxation and special levies for non-residential property converted to a mix of residential and commercial uses. The application must be filed with the assessor on or before the applicable taxable status date. Once the exemption has been granted, the exemption may continue for the authorized period provided that the eligibility requirements continue to be satisfied. It is not necessary to reapply for the exemption after the initial year in order for the exemption to continue.

Contact the City of Albany Tax Assessor at (518) 434-5155 for more information.

City of Albany Historic Property Tax Abatement
This is an exemption for improvements to Historic Property in the City of Albany and applies only to City property taxes (does not apply to County or School taxes). This exemption is to provide a property tax incentive to encourage investment in and rehabilitation of historic properties. This exemption applies to any increase in value attributable to the alteration, rehabilitation or renovation of a historic property. There will be a five-year 100% abatement of the increase in assessed value resulting from the project. The abatement will be reduced by 20% in each of the next six (6) years until taxes are paid on 100% of the assessed value of the property. Some restrictions regarding conformity to local law and approval by local preservation commissions do apply.

Contact the City of Albany Tax Assessor at (518) 434-5155 for more information.

Neighborhood Commercial Districts

Albany, New York’s history spans more than four centuries, and it continues to build on that history today as a vibrant and thriving city. Albany is a city of neighborhoods each having their own distinct character. Together, its diverse commercial districts and neighborhoods make Albany an urban center of choice to live and do business. Explore Albany’s neighborhoods on the map below and read more about them on the City of Albany’s website.