NEW YORK, NY (RealEstateRama) July 23, 2008 – The board of the New York State Housing Finance Agency (HFA) today approved $25.5 million in financings to renovate 459 affordable housing units in two Mitchell Lama projects in the City of Rochester.
The financings will provide for major capital improvements at St. Simon’s Terrace and the River Park Commons, both of which are located close to downtown Rochester near the Genesee River. The River Park Commons project will be known as the Hamilton Apartments upon completion of the renovations.
Also today, the New York State Affordable Housing Corporation (AHC), an HFA subsidiary, approved a $600,000 grant to the Bishop Sheen Ecumenical Housing Foundation to help repair 112 housing units located in 13 counties in Western New York, including Monroe County.
“Governor Paterson and the State Legislature made an historic commitment to housing in the State Budget and we are moving quickly to use those resources to upgrade our aging housing stock upstate,” said Priscilla Almodovar, HFA President and Chief Executive Officer. “The ‘Mitchell Lama Rehabilitation and Preservation’ Program was created expressly to help projects like St. Simon’s Terrace and the Hamilton Apartments renovate individual units and their common grounds. The Paterson Administration understands that affordable housing that is decent and in good repair makes our communities stronger, businesses healthier and neighborhoods more diverse. That is why we approved these financings today.”
The first mortgages for St. Simon’s Terrace and the Hamilton Apartments will be funded from the issuance of tax-exempt bonds. The HFA financings also include second mortgages that will be funded from the $304.2 million investment in housing approved in the current State Budget by the Governor and the State Legislature.
St. Simon’s Terrace
HFA approved a $7.8 million first mortgage and $5 million second mortgage to finance the acquisition and rehabilitation of St. Simon’s Terrace, a 256-unit Mitchell Lama located at 360 St. Paul Street, Rochester. The new borrower is an entity controlled by Landsman Development Corporation, whose principal is Elliot Landsman.
The renovations include extensive interior and exterior capital improvements, replacement of hot water heaters, new doors and windows and upgrades of common areas. Tenants will be able to stay in their apartments during the renovations.
Ninety-five percent of the units will be reserved for tenants with household incomes up to $38,460 for a family of four.
The total development cost is $15 million. In addition to the HFA financing, the project is expected to receive $2.33 million from the U.S. Department of Housing and Urban Development (HUD) through an Interest Rate Reduction Agreement; HUD Section 236 enhanced vouchers for 244 tenants; a $175,000 loan from the New York State Energy and Development Authority (NYSERDA); an annual allocation of $425,500 in Federal Low Income Housing Tax Credits; and a local property tax abatement.
In addition, the project’s mortgages with the Empire State Development Corporation (ESDC) will be satisfied through partial forgiveness of the outstanding balance, a cash payment of $1.2 million and a $1.574 million purchase note loan.
Hamilton Apartments
HFA approved a $10 million first mortgage and a $2.75 million second mortgage to finance capital improvements at a development to be known as the Hamilton Apartments, a 203-unit Mitchell Lama located at 185 Mount Hope Avenue, Rochester. The new borrower is an entity controlled by Conifer Realty LLC. The complex was built in 1975 with a HUD Section 236 mortgage, which limits tenant income.
The project is a 13-story building that was originally part of a low-income complex known as River Park Commons. The remaining housing units, located in low-rise buildings, are expected to be demolished and replaced with new rental units.
The Hamilton rehabilitation includes installation of new windows and kitchens, new ENERGY STAR appliances, new light fixtures and roof replacement. Fourteen studio apartments will be refurbished to be fully handicap accessible. In addition, the first floor will be reconfigured to include a community room, a computer room and an exercise room. Tenants will be temporarily relocated during the renovations of their apartments. All of the units will be reserved for tenants with household incomes up to $38,460 for a family of four.
The total cost of the project is $18.5 million. In addition to the HFA financings, the project is expected to receive $2.39 million through a HUD Interest Rate Reduction Agreement; brownfield tax credits from the NYS Department of Environmental Conservation; an annual allocation of $589,377 in Federal Low Income Housing Tax Credits; HUD rental assistance payments for Section 202 tenants; $500,000 from the City of Rochester; and $242,400 in NYSERDA Multifamily Performance funds.
Sheen Housing Home Repair Program
AHC approved a $600,000 grant to the Bishop Sheen Ecumenical Housing Foundation to help repair 112 housing units located in 13 counties in Western New York.
The grant will finance renovations to eliminate housing conditions that adversely affect the health and safety of residents, such as contaminated water supplies, unsanitary septic systems, and unsafe heating and electrical systems, with a priority going to septic systems and wells.
The grant awards will be made available for homeowners in Monroe, Allegany, Chemung, Schuyler, Steuben, Tioga, Tompkins, Cayuga, Livingston, Ontario, Seneca, Wayne, and Yates counties. Awards will be made to households with incomes no more than 112% of HUD’s Low Income Limits for each county. For Monroe County, the income limit is $57,456 for a family of four. For the other counties, the income limits range from $47,208 to $64,344 for a family of four.
The total cost of the home improvements is $1.6 million. In addition to the AHC grant, the project will receive $560,000 in Access to Home funds provided by the NYS Housing Trust Fund Corporation, $300,000 in HOME funds provided by the NYS Division of Housing and Community Renewal, $90,000 in Rural Development funds provided by the U.S. Department of Agriculture, and $50,000 in Emergency Home Repair funds provided by Bishop Sheen Ecumenical Housing Foundation.
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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 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
212-872-0679
plentz (at) nyhomes (dot) org
