SCHUMER: HOMES FOR HEROES BEING HELD BACK FROM BUILDING HOMES FOR OUR VETERANS – WILL PUSH FEDS FOR LONG-TERM LAND DEAL ALLOWING EVEN MORE HOMES TO BE BUILT

Provisions In Current, Short-Term Lease With Federal Government and Lack of Long Term Lease Keeping Homes for Heroes From Attracting Private Investments To Fund New Homes

Schumer: We Are Forever Indebted To Our Veterans, Federal Gov’t Should Support Every Responsible Effort To Provide Housing

New York, NY – April 27, 2011 – (RealEstateRama) — Today, U.S. Senator Charles E. Schumer announced his push to aid Homes for Heroes as they seek to modify their current land lease agreement and secure a long-term land agreement that will improve their fundraising capability, allowing the group to provide new homes to even more of our disabled veterans. Currently, Homes for Heroes is in the middle of a short-term 5-year lease with the Health and Human Services Department that requires construction on homes for veterans to be completed after 3 years. Due to the economic downturn, Homes for Heroes struggled to raise necessary funds for the new construction which led to delays, but the organization is now on the verge of breaking new ground and moving forward. However, because the three year deadline will fall before the completion of the funding, Homes for Heroes will be unable to meet all of the terms of their leasing agreement, which could hinder their ultimate goal of securing a long-term land deal. After touring the Homes for Heroes site at Camp Shanks in Tappan, Schumer announced that he is calling on Health and Human Services Secretary Kathleen Sebelius and the General Services Administration Administrator Martha Johnson to grant a waiver on the construction timeline requirement in the current lease deal, which could pave the way for a long-term deal that could secure Homes for Heroes’ future for decades to come.

“The bottom line is that even one homeless veteran is too many,” said Schumer. “Homes for Heroes provides housing for our nation’s homeless heroes, and I vow to do anything and everything that will keep this project moving forward. Our veterans have served our country and it is our solemn duty to serve them in return. I have personally written to Secretary Sebelius and Administrator Johnson asking that they give Homes for Heroes time to move forward with their construction projects, and not to let the economic downturn stand in the way of the group’s long-term future. Homes for Heroes is doing incredible work, and they should be allowed and encouraged to keep on doing it for years to come.”

Homes for Heroes is a Rockland County-based program geared toward expanding housing and rental housing assistance for disabled veterans. The Department of Veterans Affairs (VA) estimates that approximately 200,000 adult veterans live on the streets or in shelters on any given day, and nearly twice as many are homeless at some point during the year. Schumer is pushing HHS and GSA to come to an agreement with the Rockland Housing Action Coalition (RHAC) that is currently three years into a five year lease and eventually consider a long-term land agreement. In 2009, the U.S. Department of Health and Human Services leased thirteen acres of surplus U.S. Army Reserve property (known as Camp Shanks) to the Rockland Housing Action Coalition (RHAC) for the purpose of building and operating permanent, supportive housing for disabled veterans and their families, who are unable to either purchase homes or find suitably-equipped rental units at market prices. Camp Shanks was the largest World War II army embarkation camp in the United States. Over 1.3 million soldiers went through the camp, also known as “Last Stop USA,” for processing before being deployed to Europe.

Finally ready to begin construction, the project plans call for the construction of rental units on six of the thirteen acres and will include the rehabilitation of one or two buildings presently standing on the property.  The project, aided by a $1 million federal grant Senator Schumer helped to secure, ultimately aims to construct 50 handicapped accessible, garden-style apartments, a community center and offices for agencies that will provide support services to the resident veterans. Schumer, a supporter of the Homes for Heroes project since the beginning, is pushing HHS and GSA to grant the Rockland Housing Action Coalition (RHAC) a waiver from the construction timeline requirement of the current lease, so that they are not barred from securing a long-term land deal on the property. RHAC entered this land lease agreement in partnership with Joseph’s Homes to transform the property into permanent, supportive housing for disabled veterans and their families. As Homes for Heroes has sought to raise private funds for new homes for our wounded warriors, they have faced difficulty due to the uncertainty regarding the future of the land lease. A long-term land agreement will assure potential investors of the program’s stability, increasing overall fundraising potential for Homes for Heroes which will in turn allow the group to expand and help provide housing for even more disabled veterans.

The text of Senator Schumer’s letter to Secretary Sebelius and Administrator Johnson appears below:

Dear Secretary Sebelius and Administrator Johnson,

I write to you today to urge you to work with the Rockland Housing Action Coalition (RHAC) and renegotiate current provisions of their land lease agreement for thirteen acres of surplus U.S. Army Reserve formerly known as Camp Shanks located in Rockland County, New York.  RHAC entered this land lease agreement in partnership with fellow housing organization Joseph’s Homes to transform the property into permanent, supportive housing for disabled veterans and their families in an effort called Homes for Heroes.  I have long supported Homes for Heroes by securing funding in the Fiscal Year 2010 Omnibus Appropriations bill and encourage you to work with RHAC in continuation of this effort to give the brave men and women who fought to protect our country access to affordable housing.

As you may know, RHAC currently holds a five year, renewable lease with the U.S. Department of Health and Human Services to build rental housing for homeless veterans. The initial project was designed to construct 25 rental units on six of the thirteen acres, including the rehabilitation of one or two buildings presently standing on the property. Ultimately, Homes for Heroes intends to construct 50 handicapped accessible, garden-style apartments, a community center and offices for agencies that will provide support services to the resident veterans.  However, the tough economic climate has slowed RHAC’s efforts to complete financing for Homes for Heroes considerably.  As a result, the organization has been unable to meet their current lease’s construction timeframe requirements as listed in their original land lease agreement.  Now that RHAC has raised the finances needed for construction, I ask that you grant a waiver for this timeline requirement to see that plans for Homes for Heroes come to fruition.

Moreover, I encourage you to work with RHAC to ensure that in the future a long term lease agreement is completed that will complement RHAC’s fundraising efforts.  Currently, RHAC has struggled to find funding opportunities because their current land lease agreement is limited to a five year term.   Because many opportunities for federal subsidy require much longer thresholds, RHAC’s efforts are severely hindered.  It is vital that you not only support modifications to the current land agreement so that RHAC can complete the remaining terms of the lease, in the longer term, I urge you to work with RHAC on an agreement with RHAC that will solidify Homes for Heroes for decades to come, and help boost their fundraising potential, leading to even more new homes for our nation’s veterans.

Thank you for consideration of this request.  If you have any additional questions please feel free to contact Megan Richardson of my office at (202) 224-6542.

Sincerely,

Charles E. Schumer

United States Senator