Funds will Preserve Thousands of Low-Income Homes for Owners and Renters
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Funds will Preserve Thousands of Low-Income Homes for Owners and Renters

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June 12, 2008 – Governor David A. Paterson today announced $742 million in grants and financing to build and renovate 2,379 affordable housing units throughout New York State. The funds will be used to finance construction of new housing units and preserve existing units, reinforcing the Governor’s commitment to protecting neighborhoods and promoting affordable housing in the state.

The financing was approved by the boards of the New York State Housing Finance Agency (HFA) and its subsidiary, the New York State Affordable Housing Corporation (AHC).

“This financing demonstrate our commitment to creating and preserving affordable housing across New York State,” said Governor Paterson. “From Buffalo to Riverhead, we are helping build communities and grow our economy. Last week, we acted to protect the residents of Starrett City from losing their affordable housing. Beyond the funds announced today, the current State Budget provides a landmark $304.2 million in additional new housing investments, to improve the quality of lives for thousands of New Yorkers.”

The projects include preservation of four low-income housing developments, including three Mitchell Lama projects, where the owners have agreed to keep rents affordable for the next 40 years in return for financing major capital improvements.

State Senator John J. Bonacic, Chair of the Senate Housing Committee, said: “The need for affordable housing in New York is insatiable. I am pleased to work with Governor Paterson who has made this issue a priority. Investing in affordable housing is in the best interest of all New Yorkers. We need diverse and stable communities and renovating existing housing stock and building new housing will help to meet that need.”

State Senator Liz Krueger, Ranking member of the Senate Housing Committee, said: “I am pleased that the Paterson administration is taking such a proactive approach to New York State’s affordable housing crisis. These grants will help address the desperate need for quality affordable housing in New York communities.”

Assemblyman Vito Lopez, Chair of the Assembly Housing Committee, said: “I would like to commend Governor Paterson and President Almodovar for continuing to make the development of affordable housing units a top priority. From the “Block-by-Block” initiative to preservation of the Mitchell-Lama, this Administration continues to work in every community in New York State.”

Assemblyman Michael Fitzpatrick, Ranking member of the Assembly Housing Committee, said: “The Governor’s pro-active approach to improving and expanding housing opportunities across New York State will yield solid results for our local economies. Governor Paterson’s leadership in housing is welcome, necessary and effective.”

Priscilla Almodovar, President and Chief Executive Officer of HFA and AHC, said: “The grants and financings we approved today show the wide range of assistance we offer to build and protect New York State’s diverse housing stock. Whether it is home improvement loans, renovations of Mitchell Lama projects or financing 80/20 projects under our new guidelines, we work to provide a diversity of affordable housing opportunities in all regions of the state.”

The projects are as follows:

New York City:

HFA approved three 80/20 projects, in which 20% of the units are set aside for low-income tenants:

  • $390 million to finance two apartment towers with 835 units, of which 168 will be affordable, at 505 West 37th Street in the Hudson Yards district of Manhattan.
  • $94.5 million to finance a 27-story apartment house with 207 units, of which 42 will be affordable, at 350 West 37th Street in the Hudson Yards district.
  • $137 million to finance a 34-story building with 365 units, of which 73 will be affordable, at 80 DeKalb Avenue in the Fort Greene section of Brooklyn.

HFA also approved financing for three preservation deals, two of which are Mitchell Lama projects:

  • $41 million to finance capital improvements and protect affordability at the 558-unit Shore Hill Apartments, a Mitchell Lama project in the Bay Ridge section of Brooklyn.
  • $20 million to finance capital improvements and protect affordability at Baisley Park Gardens, a 212-unit Section 8 project in Queens.
  • $20.5 million to finance capital improvements and protect affordability at Brookdale Village, a 546-unit Mitchell Lama project in Far Rockaway, Queens.

HFA also approved $10.6 in financing for construction of the Colon Plaza Apartments, a 55-unit rental development in East Harlem. All the units will be affordable and 11 will be set aside for formerly homeless tenants.

AHC approved seven grants in the city to the Housing Partnership Development Corporation:

  • A $2.12 million grant to finance construction of a seven-story co-op building with 62 units in the Longwood section of the Bronx.
  • A $590,000 grant to build 17 co-ops in a seven-story building in East Harlem, Manhattan.
  • A $440,000 grant to build 11 co-ops in a second seven-story building in East Harlem, Manhattan.
  • A $485,000 grant to build 14 co-ops in a three-story building in the Greenpoint section of Brooklyn.
  • A $425,000 grant to build 14 co-ops on several sites in Coney Island, Brooklyn.
  • A $425,000 grant to build seven two-family homes in the Ocean Hill/Brownsville section of Brooklyn.
  • A $540,000 grant to build six three-family homes in the Bedford-Stuyvesant section of Brooklyn.

Long Island:

AHC approved a $195,000 grant to the Town of Riverhead through its Community Development Department to finance home improvements for 26 single-family homes.

Albany:

AHC approved a $400,000 grant to the Albany Housing Authority to finance the construction of 10 single-family affordable homes in the Arbor Hill section of the City of Albany.

North Country:

AHC approved two grants to renovate existing homes in St. Lawrence County:

  • A $300,000 grant to the City of Ogdensburg to finance home improvements for 22 single-family homes located on scattered sites in the city.
  • A $300,000 grant to the Association for Neighborhood Rehabilitation, Inc. to finance home improvements for 25 single-family homes located on scattered sites throughout the county.

Oneida County:

HFA approved $8.5 million in financing for major capital improvements at the 102-unit Park Drive Manor I Apartments, a Mitchell Lama project in Rome in Oneida County.

Western New York:

AHC approved eight grants to renovate existing homes:

  • A $300,000 grant to the Chautauqua Home Rehabilitation and Improvement Corporation to finance improvements for 35 homes in Chautauqua County.
  • A $225,000 grant for the City of Elmira’s Department of Community Development to finance home improvements for 20 homes in Chemung County.
  • A $300,000 grant to the Cuba Community Development Corporation to finance home improvements for 40 homes in Allegany County.
  • A $300,000 grant to Community Progress, Inc. to finance home improvements for 40 homes in Chemung, Schuyler, and Steuben counties.
  • A $300,000 grant to the City of Binghamton’s Department of Planning, Housing and Community Development to finance home improvements for 30 homes in Broome County.
  • A $200,000 grant to the Lackawanna Housing Development Corporation to finance the acquisition and rehabilitation of 10 units located in scattered sites in the Second Ward of the City of Lackawanna in Erie County.
  • A $500,000 grant to the Cheektowaga Community and Economic Development Office to finance home improvements for 20 units, including 10-single family homes and five two-family homes in Erie County.
  • A $300,000 grant to the Group 14621 Community Association, Inc. to finance home improvements for 35 housing units in the 14621 zip code in the City of Rochester, Monroe County.

AHC also approved four grants in Buffalo as part of the new “Block-by-Block” program:

  • The city’s Buffalo Urban Renewal Administration (BURA) received a $1.15 million grant to finance renovations for 48 units located on several blocks in the Mid-City area of the city’s East Side.
  • BURA received a second grant for $400,000 to finance the acquisition and rehabilitation of five two-family homes in the Mid-City area on Buffalo’s East Side.
  • West Side Neighborhood Housing Services, Inc. received a $200,000 grant to finance home improvements for 10 homes on two blocks located in the Grant Ferry and Black Rock Riverside neighborhoods of Buffalo.
  • HomeFront, Inc. received a $240,000 grant for the acquisition and rehabilitation of six vacant homes located on one block on 19th Street on the West Side of Buffalo.

Also, HFA approved $9.3 million in financing for the construction of the Brookside II Apartments with 88 units of affordable housing in the Town of Canandaigua in Ontario County.

The NYS Housing Finance Agency was created in 1960 to sell bonds to finance the construction and rehabilitation of multi-family affordable rental housing in New York State.

AHC, a subsidiary of HFA, was established in 1985 to promote homeownership by low- and moderate-income households. Financial assistance approved annually by the New York State Legislature, combined with other private and public investments, is used for the construction, acquisition, rehabilitation and improvement of owner-occupied housing.

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