Albany, NY – November 4, 2009 – (RealEstateRama) — The NYS Division of Housing and Community Renewal (DHCR) today announced the award of $27 million in stimulus funds that will help jumpstart seven developments that had been stalled by the economic downturn. The awards will help to build or rehabilitate 399 units of affordable housing for low income families, individuals with disabilities and frail elderly. To date, stimulus funds have helped to rehabilitate or build more than 4,100 units of housing.
Governor David A. Paterson said, “These awards will help us to save much-needed affordable housing that had been endangered by the financial downturn. These developments will not only help create new homes for our most-vulnerable New Yorkers, they will also create new jobs and stimulate local economies by generating more than $100 million in direct economic activity.”
The grants announced today are part of $253 million in Tax Credit Assistance Program (TCAP) funds provided to New York State through the federal stimulus package, also known as the American Recovery and Reinvestment ACT (ARRA).
The awards were allocated to DHCR and used to fill financing gaps created by the devaluation of Low Income Housing Tax Credits. Before the financial downturn, the tax credits were one of the most reliable sources of equity for affordable housing projects. The grant recipients were awarded tax credits in 2007 and 2008. However, the meltdown of the housing and financial markets caused the tax credits to lose 25 percent or more of their value, creating funding gaps for many affordable housing projects that relied on the credits. The TCAP funds will allow construction on the projects, which are expected to begin within 45 days.
DHCR Commissioner Deborah VanAmerongen said: “The Governor is to be applauded for effectively lobbying Congress and the President’s office to include funding for affordable housing in the economic recovery package. Thanks to his efforts and commitment, New York has taken the lead in addressing the economic crisis and its impact on the creation of affordable housing.” The projects that have received TCAP funds are located in every region of the state and include urban, suburban and rural developments. The full list of TCAP awards granted since April can be found on the DHCR website at: http://nysdhcr.gov/General/ARRA/TCAP/TCAP_AwardedProjects.pdf
The most recent TCAP awards include:
Central New York:
- $3.8 million for Kemble Square in the City of Utica, which will provide 37 units of affordable housing for very-low income families and individuals;
- $1.6 million for Westside Housing Phase II in the City of Syracuse, which will provide 20 units of housing for very low income households and people with physical disabilities or traumatic brain injury
- $2.2 million for the Franklin Building in the City of Watertown, which will provide 16 residential units for low income households and homeless families;
- $2.25 million for Hudson Terrace Apartments in the City of Hudson, providing 168 units for low-income families;
Downstate and New York City:
- $7 million for 70 Bruckner Boulevard in the Bronx, which will provide 60 units for low and very low income families and individuals;
- $7.75 million for East Harlem MEC Center, providing 49 units low income individuals and people with physical disabilities;
- $2.75 million for Ashburton Senior Apartments in Yonkers, which will provide 49 units for very low income and frail elderly people.
DHCR adheres to ARRA Policy Goals outlined by Governor Paterson, which include, fostering energy independence by ensuring that all projects recommended will meet heightened energy-efficiency standards; providing equal opportunity for Minority and Women Owned Business Enterprises (MWBE) by applying MWBE utilization goals to all projects recommended for TCAP funding and encouraging sound labor practices by requiring, consistent with the requirements of ARRA, that all projects utilize Davis-Bacon wage and fringe rates approved by the U.S. Department of Labor.