Grants to Jumpstart Stalled Projects; Provide 535 Units of Affordable Housing Units
Albany, NY – July 28, 2009 – (RealEstateRama) — Governor David A. Paterson today announced the award of $30 million in affordable housing grants through the American Recovery and Reinvestment Act (ARRA). The grants will jumpstart eight affordable housing projects that were delayed because of the economic downturn. The projects, which are a combination of new construction and rehabilitation of existing units, will create 550 affordable homes for working families.
“These grants will save desperately needed affordable housing projects that had been endangered by the economic downturn. They will generate $122 million in direct economic activity in New York and attract more than $51 million in additional equity for these developments,” Governor Paterson said. “Thanks to President Obama and the our Congressional Delegation, we are putting these funds to work so that New Yorkers can get back to work, while also increasing access to quality affordable housing.”
The awards announced today are part of $253 million in federal Tax Credit Assistance Program (TCAP) grants for New York, which will be used to fill financing gaps created by the devaluation of Low Income Housing Tax Credits (LIHC). 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 20 percent or more of their value, creating funding gaps for many affordable housing projects that relied on the credits. Thanks to the TCAP awards, construction on the projects is expected to begin within 45 days.
Division of Housing and Community Renewal (DHCR) Commissioner Deborah VanAmerongen said: “Governor Paterson was the first Governor in the nation to suggest that funding for affordable housing be included in the economic recovery package, and I applaud him for his efforts. The Low-Income Housing Tax Credit Program is a longstanding and critical tool for creating affordable housing, but the economic crisis has made it difficult to use this program to its full potential. The funds announced today will get stalled projects off the ground and go a long way toward making New York a better, more affordable place to live and work.”
The eight projects include the rehabilitation of a 193-unit YWCA Residence for Women in Westchester County, the new construction of a 115-unit development for low-income individuals in Niagara County, and the new construction of a 65-unit eight-story building for senior citizens in Manhattan.
DHCR administers TCAP grants for New York State. TCAP provides grant funding for capital investment in LIHC projects via a formula-based allocation to State housing credit allocation agencies. The housing credit agencies in each state distribute these funds competitively. To expedite job-creation, the ARRA sets deadlines for the commitment and expenditure of grant funds and requires priority be given to projects that will be completed by February 16, 2012.
In implementing TCAP, DHCR adheres to Recovery Act Policy Goals outlined by Governor Paterson, including:
- 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.
The eight projects receiving TCAP grants include:
| Project Name | Applicant | County | Municipality | TCAP | Total Development Cost | Affordable Units |
|---|---|---|---|---|---|---|
| Sherwood Heights Senior Apts | Lakewood Development/2+4 Development | Sullivan | Town of Rockland | $1,101,394 | $5,109,679 | 28 |
| Catherine Gardens | Senior Citizens Council of Clinton County | Clinton | City of Plattsburgh | $1,920,966 | $8,035,001 | 31 |
| Erbograph Apartments | Harlem Congregations for Community Improvement | New York | City of New York | $4,494,665 | $24,006,546 | 65 |
| YWCA Residence for Women | YWCA of White Plains and Central Westchester | Westchester | City of White Plains | $6,525,505 | $25,761,003 | 193 |
| Union Meadows II | Union Meadows Associates II, LP | Monroe | Town of North Chili | $503,859 | $8,582,516 | 42 |
| Bank Street Senior Apartments | Bank Street Senior Housing, LLC | Genesee | City of Batavia | $5,431,515 | $10,879,822 | 37 |
| Center Court Phase I | Niagara Falls Housing Authority | Niagara | City of Niagara Falls | $7,643,425 | $35,697,318 | 115 |
| Nelson Hopkins Apartments | Elizabeth Pierce Olmstead Center | Niagara | Town of Lockport | $2,299,205 | $4,866,546 | 24 |
| Totals | $29,920,534 | $122,938,431 | 535 | |||
The following quotes were provided in support of the affordable housing grants:
U.S. Senator Charles E. Schumer said: “In these difficult economic times, it is critical that we provide safe and affordable housing for those in need. We cannot thrive without quality, affordable housing, and these housing grants will both create good jobs and construct and rehabilitate housing units for thousands of families across New York.”
U.S. Senator Kirsten E. Gillibrand said: “These federal dollars will help put more families in homes they can afford and create thousands of new good-paying jobs. This is the right economic investment for New York. I will continue working with Governor Paterson, Senator Schumer and the entire Congressional Delegation to make sure New York gets its fair share from the federal government.”
Senate Majority Leader Pedro Espada, Jr., Chair of the Senate Housing, Construction and Community Development Committee, said: “These stimulus funds will create quality, affordable housing for the elderly and low-income, middle and working class families across the State. They will also generate business for small contracting companies and create jobs for local residents. The economic crisis has placed tremendous strain on affordable housing projects and employment throughout the State. These federal stimulus funds secured by the Governor will play an important role in moving these stalled projects forward and creating new jobs.”
Senator Suzi Oppenheimer said: “I want to thank Governor Paterson for awarding a significant grant to the White Plains YWCA Residence for Women to expand and renovate its affordable housing facilities. For nearly 80 years, the White Plains YWCA has been providing safe, comfortable and reasonably priced housing for students, working professionals and women in transition. This grant will allow the YWCA to help many more women achieve the dream of independent living.”
Senator Antoine Thompson said: “These grants for the Governor will allow for the completion of stalled construction and rehabilitation projects. When the projects are completed, several existing housing units will be created for families that are in need of affordable housing.”
Assemblyman Herman D. Farrell, Jr., Chair of the Assembly Ways and Means Committee, said: “Given the magnitude of the current economic crisis, I am pleased that these funds are being utilized to take care of our most vulnerable New Yorkers – elderly residents on fixed incomes. The construction of the Erbograph Apartments is an important investment in Harlem that will provide housing for those who struggle with mobility and independence. I thank Governor Paterson and our Congressional delegation for their leadership in advocating for federal housing dollars right here in New York where there is great need for this investment.”
Assemblywoman Francine DelMonte: “This $7.6 million in federal stimulus funding will provided the much needed financial jumpstart to complete phase 1 of the Center Court project. In such tough economic times, the Center Court project will provide much needed housing to some of Niagara’s most vulnerable residents.”
Assemblywoman Aileen Gunther said: “I am pleased that this funding is being allocated to the Sherwood Heights Senior Apartments. During this tough economic time these 28 new units will assist seniors with affordable housing.”
Assemblywoman Susan John said: “I thank the Governor for recognizing the need for this funding to help our families that are struggling with their housing need. This funding will help more families with their housing needs, while providing real jobs for the hardworking men and women in our region and state at a time when many families are struggling to make ends meet. These funds will help families into a real home at the same time providing much needed jobs for hardworking New Yorkers.”
Assemblywoman Amy Paulin said: “Recently the availability of affordable housing has declined, while the need in New York State has grown. These funds are coming at the right time for the women of White Plains and central Westchester who need it the most.”
