Home Foreclosures Nearly $25 Million Approved to Build and Preserve Affordable Housing in New...

Nearly $25 Million Approved to Build and Preserve Affordable Housing in New York City

NEW YORK—Wednesday, May 7, 2008—Nearly $25 million in financing and grants was approved today to build and preserve 333 units of affordable housing in New York City. The actions were taken by the boards of the New York State Housing Finance Agency (HFA) and its subsidiary, the New York State Affordable Housing Corporation (AHC).

The approvals included $18 million in financing to renovate the 125-unit Caroline Apartments in the Inwood section of Manhattan and a $2 million grant to the Housing Partnership Development Corporation to buy and renovate at least 50 foreclosed housing units in New York City.

“These approvals demonstrate the wide variety of affordable housing that ‘nyhomes’ finances,” said Priscilla Almodovar President and Chief Executive Officer of ‘nyhomes.’ “We are preserving Section 8 housing in Inwood in partnership with a private developer and the Metropolitan New York Coordinating Council of Jewish Poverty, which will provide services to the elderly and other residents in need. We are funding an innovate program to buy foreclosed homes in order to save neighborhoods hit hard by the subprime crisis. And we are providing grants to build new affordable homes in Bushwick, Melrose and East Harlem.”

The Caroline Apartments

HFA approved $18 million in financing to The Related Companies, L.P. to acquire and renovate The Caroline Apartments at 210 Sherman Avenue in the Inwood section of Manhattan. The Caroline is a 125-unit development in which all of units are set aside for Section 8 housing tenants with household incomes at or below $46,080 for a family of four.

A unique feature of this financing is that the Metropolitan New York Coordinating Council of Jewish Poverty, a non-profit service provider and advocacy organization on behalf of the poor, has been brought into the project as a partner. The Met Council will provide services to Caroline tenants and help train the property manager on the services the council provides.

Also, Related has agreed to set aside at least 20% of the units for tenants with special needs, including the elderly and the disabled. Currently, 33 units, or 26% of the units, are designated for special needs households.

Mark Carbone, President of Related Affordable, said, “Related Companies is pleased to partner with the New York State Housing Finance Agency to upgrade and ensure the long-term preservation of affordability of Caroline Apartments in Inwood, New York. The rehabilitation of Caroline Apartments is indicative of Related’s long-standing commitment to helping to ensure the availability of quality affordable housing for New Yorkers.”

William E. Rapfogel, Met Council’s CEO said, “The Met Council on Jewish Poverty is pleased to join with New York State and Related to ensure that people who need affordable housing will live in quality apartments and help preserve their neighborhoods.  We are especially proud to help train the property manager of the Caroline and ensure that tenants receive the social services and benefits they require.”

The total project cost is $26.7 million. In addition to HFA financing, the project will receive an annual allocation of $809,127 in Federal Low-Income Housing Tax Credits and a 420-c property tax abatement from New York City.

Neighborhood Stabilization Initiative

AHC approved a $2 million grant to the Housing Partnership through the NYC Partnership Housing Development Fund Company Inc. to help fund its Neighborhood Stabilization Initiative—an innovative new program aimed at renovating at least 50 foreclosed housing units in New York City.

The Housing Partnership program is designed to stabilize neighborhoods that are at risk due to an increase in foreclosed homes. The program will target strategically located homes that will have the most significant impact on the viability of individual neighborhoods.

Through the Neighborhood Stabilization Initiative, the Housing Partnership will look to buy homes in all five boroughs, renovate them and then sell them to new homeowners. The first neighborhood to be the focus of the program will be the Far Rockaways in Queens, which has been one of the New York City communities hardest hit by the foreclosure crisis. The Margert Community Corporation, a housing counseling agency based in Far Rockaway, is contributing up to $30,000 per home to the program.

POKO South Bronx Condominiums

AHC approved a $1.59 million grant to the Housing Partnership for the construction of 53 condominium units in five buildings in the Melrose section of the Bronx.

The units will be located on Morris Avenue, Park Avenue, Jackson Avenue, East 159th Street and East 161st Street, and will contain energy-efficient appliances, lighting and heating systems. The awards will be limited to households earning up to $102,700 for a family of four, with some units reserved for households with incomes up to $84,187 and $68,824.

In addition to the AHC grant, the project will receive $1.26 million in HOME funds, $300,000 in Housing Trust Fund monies, $3.4 million in subordinated land provided by NYC Department of Housing Preservation and Development (HPD) and $240,000 in Resolution A funds provided by the Bronx Borough President’s Office. It is also expected to receive $1.5 million in capital funds from HPD.

Bushwick/Stellar Homes

AHC approved a $720,000 grant to the Housing Partnership for the construction of 18 units to be located on scattered sites in the Bushwick section of Brooklyn.

The units consist of six three-family homes with a three-bedroom owner’s unit, a three-bedroom rental unit, and a one-bedroom rental unit. The awards will be limited to households that earn no more $68,824 for a family of four.

In addition to the AHC grant, the project will receive $1.48 million in land subordination provided by HPD.

East Harlem Site 6

AHC approved a $2.625 million grant to the Housing Partnership to build 87 cooperative affordable units at 72-78 East 111th Street in the East Harlem section of Manhattan.

The units will be located in a 13-story, 117-unit mixed-income building that features a green recreation space, a ground floor community space and a 58-space parking garage. The units will be limited to households earning no more than $102,007 for a family of four, though some units will be reserved for lower income households.

In addition to the AHC grant, the project will receive $5 million in first and second mortgages from the NYC Housing Development Corporation, $1.49 million in Resolution A funds from the New York City Council and $4.4 million in sales proceeds provided as a subsidy from the market rate units and commercial space. It is also expected to receive $1.6 million in capital funds from HPD.
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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 investment, is used for the construction, acquisition, rehabilitation and improvement of owner-occupied housing.

Contact: Philip Lentz
Director of Communications
212-688-4000 x679
plentz (at) nyhomes (dot) org