Low Income Housing Tax Credit Funds Will Help Create 1,400 Construction-Related Jobs and Finance Nearly 740 Units Of Affordable Housing
November 23, 2011 – (RealEstateRama) — Mayor Michael R. Bloomberg, Deputy Mayor Robert K. Steel, and Department of Housing Preservation and Development Commissioner Mathew M. Wambua today announced that the City has allocated $14.4 million in Low Income Housing Tax Credits to 13 affordable housing projects. The tax credits were provided by New York State and serve as a critical source of funding for low-income affordable housing developments. New York City worked closely with the Cuomo Administration to complete these financing deals, which will support a total of 737 affordable units. It is expected that the work being done on these 10 new construction projects and three preservation projects will create approximately 1,400 new construction and related industry jobs throughout the course of their construction period.
“The creation and preservation of affordable housing is an economic engine for the City, strengthening our neighborhoods and providing housing for New Yorkers with a range of incomes,” said Mayor Bloomberg. “These tax credits allow us to leverage private sector investment to fund 737 units in 13 projects, creating nearly 1,400 construction and construction-related jobs.”
“The Mayor’s plan to create and preserve affordable housing for New Yorkers is a critical component of strengthening and expanding our economy,” said Deputy Mayor Steel. “These tax credits will allow New York City and its partners to continue to invest for the benefit of residents across the five boroughs.”
The 737 units of affordable housing supported by the Low Income Housing Tax Credits awards will be developed under Mayor Bloomberg’s New Housing Marketplace Plan (NHMP), an multi- billion dollar initiative to finance 165,000 units of affordable housing for half a million New Yorkers by the close of the 2014 fiscal year. To date, the plan has funded the creation or preservation of over 125,700 units of affordable housing across the five boroughs.
“We are grateful to New York State Homes and Community Renewal for their collaboration in this sub-allocation of Low Income Housing Tax Credits. The tax credit program is extremely successful as a direct means of helping developers of affordable housing gain access to private capital. Every year the number of applicants significantly outstrips the supply. We rely on these credits and tax-exempt bonds to provide a steady and reliable stream of private investment to fund our affordable housing efforts, which in turn create jobs,” said HPD Commissioner Wambua. “It is essential that these tools be preserved so that they may continue to help us secure private equity and forge important partnerships among private investors, local government and non-profit organizations.”
The Low Income Housing Tax Credits Program is an indirect Federal subsidy used to finance the development of affordable rental housing for low-income households. Each year, the IRS allocates housing tax credits to designated state agencies, who in turn allocate the credits through a competitive process to projects throughout their state. New York City receives its allocation of Tax Credits from New York State Homes and Community Renewal, the amount of which is determined and sub-allocated annually by the State. Tax Credits are awarded by HPD to qualified low-income housing projects in New York City. HPD is the only City agency that has the ability to award these credits. To be eligible, developments must be substantial rehabilitation or new construction with at least 20 percent of apartments reserved for low-income households. Low-income is defined as a household with an annual income not more than 60 percent of Area Median Income (AMI), or what would be equal to a family of four earning not more than approximately $49,000 per year.
“The State of New York is pleased and proud to provide these resources to support New York City’s efforts to provide affordable housing opportunities to hundreds of our families,” said Darryl C. Towns, Commissioner/CEO of New York State Homes and Community Renewal.
During annual funding rounds, developers apply competitively to HPD for allocations of tax credits. Once tax credits are allocated to a project, the developer may sell the credits to corporate investors to generate private equity to cover a portion of development costs. This reduces the need for public subsidy. Because the debt is lower, a tax credit property can in turn offer lower, more affordable rents. The investors receive credits that reduce their corporate federal income tax bills for ten years.
New York City Affordable Housing Projects Receiving Tax Credits:
Truxton Residence: A new construction supportive housing project being developed in partnership with Services for the Underserved Inc. in Brooklyn Community Board 16 that will provide 48 units of affordable housing. The annual LIHTC allocation is approximately $643,000, and the overall project will support approximately 71 construction-related jobs in each of the two years of the construction period.
329 Lincoln Road: A new construction supportive housing project being developed in partnership with Providence House and Alembic Development in Brooklyn Community Board 9 that will provide 22 units of affordable housing. The annual LIHTC allocation is approximately $473,000, and the overall project will support approximately 42 construction-related jobs in each of the two years of the construction period.
2142 Amsterdam Avenue: A new construction supportive housing project being developed in partnership with Community League For The Heights in Manhattan Community Board 12 that will provide 42 units of affordable housing. The annual LIHTC allocation is approximately $679,000, and the overall project will support approximately 72 construction-related jobs in each of the two years of the construction period.
Clinton Avenue Houses: A new construction supportive housing project being developed in partnership with Urban Pathways Inc, in Bronx Community Board 3 that will provide 80 units of affordable housing. The annual LIHTC allocation is approximately $1.3 million, and the overall project will support approximately 129 construction-related jobs in each of the two years of the construction period.
Garden House: A new construction supportive housing project being developed in partnership with Lower East Side Peoples Mutual Housing Association Inc, in Manhattan Community Board 3 that will provide 46 units of affordable housing. The annual LIHTC allocation is approximately $509,000, and the overall project will support approximately 61 construction-related jobs in each of the two years of the construction period.
Promesa Court: A substantial rehabilitation project being developed in partnership with Promesa HDFC in Bronx Community Boards 1, 3 and 4 that will provide 48 units of affordable housing. The annual LIHTC allocation is approximately $827,000 and the overall project will support approximately 71 construction-related jobs in each of the two years of the construction period.
Harlem 117: A new construction rental project being developed by L+M in partnership with West 116 Residential LLC in Manhattan Community Board 10 that will provide 100 units of affordable housing. The annual LIHTC allocation is approximately $2.7 million, and the overall project will support approximately 235 construction-related jobs in each of the two years of the construction period.
St. Nicholas Park Apartments: A new construction rental project being developed in partnership with the Richman Group Development Corporation in Manhattan Community Board 10 that will provide 30 units of affordable housing. The annual LIHTC allocation is approximately $700,000, and the overall project will support approximately 65 construction-related jobs in each of the two years of the construction period.
1070 Washington Avenue: A new construction rental project being developed in partnership with Bronx Pro Real Estate Management in Bronx Community Board 3 that will provide 49 units of affordable housing. The annual LIHTC allocation is approximately $1.25 million, and the overall project will support approximately 126 construction-related jobs in each of the two years of the construction period.
Cypress Village: A new construction rental project being developed in partnership with Cypress Hills Local Development Corporation in Brooklyn Community Board 5 that will provide 29 units of affordable housing. The annual LIHTC allocation is approximately $188,000, and the overall project will support approximately 26 construction-related jobs in each of the two years of the construction period.
El Barrio’s ArtSpace (PS 109): A new construction rental project being developed in partnership with ArtSpace Projects and El Barrio’s Operation Fightback in Manhattan Community Board 11 that will provide 90 units of affordable housing. The annual LIHTC allocation is approximately $2.4 million, and the overall project will support approximately 311 construction-related jobs in each of the two years of the construction period.
552 Academy: A substantial rehabilitation project in a low-income rental building which is being developed in partnership with Community League For The Heights in Manhattan Community Board 12 that will provide 72 units of affordable housing. The annual LIHTC allocation is approximately $1.75 million, and the overall project will support approximately 108 construction-related jobs in each of the two years of the construction period.
Kelly Street Restoration: A substantial rehabilitation project in a low-income rental building which is being developed in partnership with Workforce Housing Advisors in Bronx Community Board 2 that will provide 79 units of affordable housing. The annual LIHTC allocation is approximately $957,000, and the overall project will support approximately 81 construction-related jobs in each of the two years of the construction period.
MEDIA CONTACT:
Stu Loeser / Julie Wood (212) 788-2958
Eric Bederman (HPD) (212) 863-5176
