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FOR IMMEDIATE RELEASE: April 06, 2009
GOVERNOR PATERSON ANNOUNCES $253 MILLION IN AFFORDABLE HOUSING GRANTS
New York is First State to Utilize Economic Recovery Funds to Jump Start Affordable Housing Projects
Projects Will Provide Nearly 8,000 Units of Affordable Housing across New York
Governor David A. Paterson today announced $253 million in affordable housing grants coming to New York through the American Recovery and Reinvestment Act (ARRA). Governor Paterson was the first Governor in the nation to suggest that funding for such housing projects be included in the economic recovery package signed into law earlier this year. These New York projects are the first housing projects in the U.S. to be awarded funding through the ARRA, and will allow for the preservation of existing affordable housing as well as the construction of new units.
The first nine projects that will receive financing include the rehabilitation of an 80-unit complex in Albany, a 388-unit Mitchell Lama complex in Syracuse, 20 three-bedroom homes in Rochester, and a YWCA Residence for Women in Westchester County. The ARRA included $2.25 billion for the Tax Credit Assistance Program (TCAP), which will help State housing agencies kick-start the production of stalled projects that rely on low-income housing tax credits. New York’s share will be $253 million and will be administered by the State Division of Housing and Community Renewal (DHCR). These first projects will create or rehabilitate nearly 1,400 units of affordable housing.
Governor Paterson made the announcement in Harlem, at the future site of Erbograph Apartments, which will be an 8-story building providing 64 affordable units for very low-income elderly and frail elderly households. He was joined by Congressman Charles B. Rangel, a leader in the fight for federal housing assistance.
“Thanks to the leadership, teamwork and tireless efforts of the entire New York delegation, we are able to quickly move stimulus funds into our communities and take full advantage of the construction season,” said Governor Paterson. “Never has the need for affordable housing been as great as it is today. As we move forward, we will be financing additional affordable housing developments, revitalizing communities, creating much-needed jobs and stimulating local economies throughout Upstate New York.”
Senator Kirsten Gillibrand said: “I welcome Governor Paterson’s announcement today that stimulus funds we passed in Congress are quickly making their way to preserving and increasing the stock of critically needed affordable housing developments across New York State. Along with Senator Schumer and the rest of the New York Congressional Delegation, I will continue to fight in Congress to increase the government's investments in public housing so that the thousands of New Yorkers who depend on these units are not left out in the cold.”
Congressman Charles B. Rangel said: “I commend Governor Paterson for his leadership in designating these funds in support of affordable housing. He has recognized the critical need to act to protect thousands of tenants from being displaced by the economics that have reduced private investment in affordable housing. Working with our allies in the White House and on Capitol Hill, this Governor has responded to the urgent need to have government step in with public investment to maintain the stability of our communities and create new opportunities for affordable housing. I also want to commend and congratulate Lucille McEwen and Harlem Congregations for Community Improvement on receiving this grant award and for providing affordable housing not just for our seniors, but for all working, and poor families residing in my Congressional District.”
The projects include the acquisition and rehabilitation of three Mitchell-Lama apartment buildings by HFA and six “shovel ready” projects identified by DHCR.
Two of the DHCR projects received Low Income Housing Tax Credits (LIHC) from the agency in June of last year. Although the tax credits have traditionally been the most effective and reliable source of equity for the developers of affordable housing, the financial downturn has had a devastating effect on their value, creating funding gaps that stalled the projects.
The ARRA included $2.25 billion for the Tax Credit Assistance Program (TCAP) which will help State housing agencies to kick-start the production of the stalled projects that rely on low-income housing tax credits. New York’s share will be $253 million and will be administered by DHCR.
The projects announced today by region include:
Capital District
- Van Rensselaer Village in Watervliet, Albany County: This project was taken from the DHCR waitlist and will rehabilitate and improve 80 affordable units for low-income and very low-income persons; awarded $1.3 million in new LIHC allocation and $2.4 million in TCAP funds.
- Clifton Park Senior Apartments in Saratoga County: This project was also taken from the DHCR waitlist. It involves new construction of one 70-unit, three-story rental building with elevators for low and very low-income elderly and frail elderly. Project will receive $956,000 in new LIHC allocation and $2.4 million in TCAP funds.
Central New York and Finger Lakes
- Mildred Johnson Estates II in City of Rochester: Another project from the DHCR waitlist, this is the new construction of 20 three-bedroom homes for low and very low-income families. Project will receive $440,000 in new LIHC allocation and $1.3 million in TCAP funds.
- El Camino Estates in Rochester: This project, also taken from the DHCR waitlist, involves the rehabilitation of one two-story building and the new construction of twenty-four single-family scattered site rental units for low and very low-income persons and people with developmental disabilities. Project will receive $550,000 in LIHC allocation as well as $2 .1 million in TCAP funds.
- Parkside Commons in Syracuse: This development, a 388 unit Mitchell Lama project-based Section 8 multifamily apartment complex for low-income residents, will be recommended for a HFA mortgage of $15 million and $8 million in TCAP funds to refinance and rehabilitate the entire 14-building complex. In return, the development will remain in the Mitchell Lama program for an extended 40-year regulatory period. TCAP funds are needed because there is not enough demand for the low-income housing tax credits typically used to finance affordable housing.
- Madison Plaza Apartments in the City of Rome: This project also involves the refinancing and rehabilitation of an existing Mitchell-Lama, HUD 236 multi-family project containing 127 units. The project will be recommended for a HFA mortgage of $3.7 million in addition to $4.8 million in TCAP funds, and in return will remain in the Mitchell-Lama program for an extended 40-year regulatory period. TCAP funds are needed because there is not enough demand for the low-income housing tax credits typically used to finance affordable housing.
Downstate and New York City
- SelfHelp Kissena I and II in Queens: consists of 425 units in two existing Mitchell Lama senior projects. Funding will provide refinancing and rehabilitation, and the buildings will remain in the Mitchell-Lama program for an extended 40-year regulatory period. The project will be recommended for $8.9 million in LIHC, a $5.7 million first mortgage from HFA, and $7.2 million in TCAP funds, which are needed because there is not enough demand for the low-income housing tax credits typically used to finance affordable housing.
- Erbograph Apartments, Manhattan: Project is the new construction of an 8-story building providing 64 affordable units for very low-income elderly and frail elderly households. In June, 2008, DHCR granted this project $1.1 million in LIHC credits which lost value as a result of the financial downturn, creating a funding gap. The project is being kick-started with $5 million in TCAP funds
- YWCA Residence for Women in Westchester County: This project will consist of the rehabilitation of a four story building with 185 existing units and the construction of eight new units for very low-income households, formerly homeless people and residents recovering from substance or alcohol abuse. This project was also funded in June of 2008 with $1.8 million in federal and state tax credits, which lost value, creating a funding gap. It is being rescued with $2 million in TCAP funds.
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