NEW YORK – November 15, 2008 – (RealEstateRama) – New York State approved nearly $30 million in financing today to build 177 new 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 $27.7 million in financing to build a 114-unit rental development in Manhattan, a $1.4 million loan to help finance a 47-unit supportive housing development in Brooklyn, and a $640,000 grant to Habitat for Humanity to build a 16-unit condominium in Brooklyn.
“The financings we approved today demonstrate our commitment to provide affordable housing in New York City in these difficult economic times,” said Priscilla Almodovar, President and Chief Executive Officer of HFA and AHC. “It also reinforces the Paterson administration’s mission of making New York State a better place to live and work. I am particularly proud that two of these projects will provide space for supportive services to assist the tenants in their daily lives.”
Today’s actions were among $66.8 million in financings approved by HFA and AHC that will create or preserve 1,059 affordable housing units across the state.
625 West 140th Street Apartments
HFA approved a $23.65 million mortgage and a $4 million second mortgage to finance construction of an 11-story, 114-unit multifamily rental apartment building at 625 W. 140th St. in the Hamilton Heights section of Manhattan.
The borrower will be 625 West 140th Street LP, an entity controlled by the Fortune Society, an organization that helps formerly incarcerated persons become contributing members of society. The site is a vacant lot owned by the Fortune Society and located next to the Fortune Academy, a residential housing facility that provides housing to homeless former prison inmates.
The apartment will include a rooftop garden and program and community space that will be used to provide supportive services to residents. The apartments will be rented to tenants with household incomes of up to $46,080 for a family of four.
The project’s total cost is $42.3 million. In addition to the HFA mortgages, the project will receive an annual allocation of $1.6 million in Federal Low Income Housing Tax Credits; an $8.3 million loan from the Supportive Housing Loan Program from the NYC Department of Housing Preservation and Development (HPD); a $5.5 million loan from the NYS Homeless Housing Assistance Program; a $1 million capital loan from the Manhattan Borough President; a $2 million capital loan from the New York City Council; a $250,000 grant from the Mayor’s Fund to Advance New York City; a $1.5 million loan from the Federal Home Loan Bank’s Affordable Housing Program; and a real estate tax exemption in accordance with HPD regulations.
Liberty Avenue Housing
HFA approved a $1.4 million subsidy loan to Liberty Avenue Housing to assist in financing the construction of a three-story, 47-unit apartment building located at 898-908 Liberty Avenue, Brooklyn. The project will also include space for social services that will be provided to the tenants under a three-year $983,304 grant from the U.S. Department of Housing and Urban Development.
The borrower, 902 Liberty Avenue LP, is controlled by the Bowery Residents’ Committee, which will also provide services to the tenants. The apartments will be reserved for tenants with incomes up to $46,080 for a family of four. In addition, 31 studio apartments will be set aside for formerly homeless tenants recovering from chemical addictions.
The total cost of the project is $15.7 million. In addition to the HFA subsidy loan, the project will receive a $6.58 million HPD Supportive Housing Loan; an annual allocation of $843,582 in Federal Low Income Housing Tax Credits; a $90,000 Mayor’s Fund Grant; and a real estate property tax exemption.
Habitat for Humanity/Hart-Lafayette Homes
AHC approved a $640,000 grant to the Housing Partnership Development Corporation to finance the construction of 16 affordable condominium units in the Bedford-Stuyvesant section of Brooklyn.
Habitat for Humanity-New York City will serve as the developer for the project, which will be built with “sweat equity” of future homeowners, who will work side-by-side with volunteers. The project will consist of four buildings, each containing four condo units. The condominiums will be available to households earning up to $68,824 for a family of four.
The total cost of the project is $7.4 million. In addition to the AHC grant, the project will receive $550,000 in HOME funds provided by the NYS Division of Housing and Community Renewal, $471,206 in capital funds provided by Habitat for Humanity; $560,000 in capital funds from HPD; $720,000 in Housing Trust funds from HPD; $965,000 in Resolution A funds from HPD; and $1.05 million in subordinated land provided by HPD.
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The NYS Housing Finance Agency was created in 1960 to sell bonds to finance the construction and rehabilitation of multifamily affordable rental housing in New York State.
AHC, a subsidiary of NYS Housing Finance Agency, was established in 1985 to promote homeownership by low- and moderate-income households by providing financial assistance approved by the State Legislature for the construction, acquisition, rehabilitation and improvement of owner-occupied housing.
Contact: Philip Lentz
Director of Communications
212-872-0679
plentz (at) nyhomes (dot) org
