$39.6 Million Approved to Preserve and Build Affordable Housing in New York City

NEW YORK, NY (09/21/2007)(readMedia)-- More than $39.6 million in grants and financing was approved yesterday for affordable housing in New York City by the boards of the New York State Housing Finance Agency (HFA) and the New York State Affordable Housing Corporation (AHC).

The funds will finance the construction and renovation of 609 housing units in the city. With these actions, HFA has now approved financing to preserve 1,679 units of affordable housing in New York State since January 1, 2007.

Among the projects approved today was a $20 million loan for major capital improvements to preserve affordable housing at the Remeeder Houses in the East New York section of Brooklyn. Remeeder will also receive $325,200 in New York Energy $mart program incentives from the New York State Energy Research and Development Authority (NYSERDA) to improve the energy efficiency of its buildings.

These upgrades are expected to improve the Remeeder Houses’ energy performance by 20%. If the improvements achieve the energy target of 20% when fully installed, the project would receive an additional $104,000, bringing its total NYSERDA grant to $429,200.

Earlier this year, NYSERDA and HFA entered in a memorandum of understanding to work cooperatively to promote energy efficiency in the preservation of affordable housing.

“These actions reinforce our commitment to preserving existing and building new affordable housing in New York City,” said Priscilla Almodovar, President and Chief Executive Officer of HFA and AHC. “We are also pleased that one of our projects, Remeeder Houses in Brooklyn, was eligible for NYSERDA grants that will help save energy and reduce long-term costs. We are glad to work with our partners in the nonprofit and private sector to ensure that tenants and homeowners alike have affordable and energy efficient places to live.”

HFA approved financing totaling $36.2 million for capital improvements at the Remeeder Houses in Brooklyn and Tri-Senior Housing in the Borough Park and Flatbush sections of Brooklyn.

AHC approved more than $3.4 million in grants to finance construction of new housing units at St. Phillips Homes and the Halsey Street and Marcus Garvey Boulevard Project in the Bedford-Stuyvesant neighborhood of Brooklyn; lofts at West 115th Street in Manhattan; and two-family homes in the Far Rockaway section of Queens.

Assembly Speaker Sheldon Silver (D-Manhattan) said, “Today’s announcement is in keeping with the Assembly Majority’s long-standing commitment to preserve and create affordable housing and improve energy efficiency throughout New York City and State. By providing funds to keep units affordable for working families and seniors, we are ensuring that residents can remain in their homes. We are also creating new units and opening up new homeownership opportunities. The projects approved today by HFA and AHC combined with NYSERDA funding to improve energy efficiency go a long way toward the preservation of affordable housing for all New Yorkers.”

Senate Minority Leader Malcolm Smith (D-Queens) said, "The approval of nearly $40 million in funding for affordable housing by the New York State Housing Finance Agency (HFA) and the New York State Affordable Housing Corporation (AHC) is the strongest signal yet that New York State is committed to providing and preserving more housing units in New York City. Affordable housing is critical to keeping working families in the City. With funding to construct and renovate 609 units throughout the five boroughs, these families will be able to attain or remain in housing without sacrificing quality and safety. There is no question that this funding is welcomed by affordable housing advocates like myself. I commend the Governor, the HFA and the AHC for their efforts to help more families afford to live comfortably."

Assemblyman Vito J. Lopez, (D-Brooklyn) chair of the Assembly Committee on Housing, said, “The funding allocation by HFA reflects the commitment of Governor Spitzer and HFA to provide much needed affordable housing units in New York State. I look forward to working with the Governor and the appropriate agencies to continue to meet the crisis in affordable housing units that the residents of our state are facing.”

Sen. Liz Krueger (D-Manhattan), Ranking Democrat on the Senate Housing Committee said, "I am delighted that Governor Spitzer's administration, in contrast to his predecessor’s extremely flawed housing policies, is investing in the preservation of affordable housing and exploring new models of working with the private sector to create new affordable units in underserved areas of our city. These monies demonstrate the importance of creating a true affordable housing trust fund to ensure funds like these are available now and in the future."

Remeeder Houses

Remeeder Houses was approved for a loan of $20 million to finance the rehabilitation of a 260-unit multifamily residential rental project consisting of four six-story buildings. It is located at 350 Sheffield and 592/600 Sutter, 580 Sutter, 331 Alabama and 58 Blake Avenues in the East New York section of Brooklyn.

In exchange for the financing, Remeeder Houses has agreed to keep rents affordable for an additional 40 years. The apartments will be set aside for tenants with incomes at or below $34,080, which is 60% of New York City’s AMI.

As part of the refinancing, the current owner, Remeeder Housing Development Fund Co., Inc., will sell the project to Remeeder Houses, LP, which is controlled by Omni New York, LLC. Omni’s principals include Maurice “Mo” Vaughn, the former New York Mets slugger, Eugene Schneur, Robert Bennett and the principals of Alliant Capital, Ltd.

The renovation, which will not displace existing tenants, consists of mechanical and façade repairs; replacing and repairing existing boilers; plumbing upgrades; roof repairs; new windows, apartment entry doors, kitchen cabinets and appliances; bathroom and community room upgrades, elevator rehabilitation, new smoke and CO2 detectors, installation of a new digital security video camera system, sidewalk and parking lot repairs, outdoor lighting and general landscaping improvements.

Many of these upgrades—including replacing boilers and refrigerators, installing low-flow plumbing fixtures and upgrading apartment lighting—will be financed in part by the NYSERDA grant because they will reduce the amount of energy consumed by Remeeder Houses and its residents.

The total cost of the project is $29.8 million. In addition to the $20 million HFA loan, Remeeder Houses will receive a Section 8 project-based subsidy; an annual Federal Section 236 Interest Rate Payment subsidy of $263,634; an annual allocation of Federal Low-Income Housing Tax Credits of $973,821; and a real estate tax abatement from New York City.

Remeeder Houses was built in 1973 using the U.S. Department of Housing and Urban Development’s Section 236 IRP financing. Under this program, affordable rental units were developed with low-interest mortgage loans and property tax exemptions in exchange for limits on developer profit and tenant income limits.

Tri-Senior Housing

Tri-Senior Housing was approved for a loan of $16.2 million to renovate a 203-unit project situated at three different locations in the Borough Park and Flatbush sections of Brooklyn. In exchange for the financing, Tri-Senior Housing has agreed to keep rents affordable for an additional 40 years. The apartments will be set aside for seniors at least 62 years of age and disabled tenants with incomes at or below $34,080, which is 60% of the Area Median Income for the New York City region.

Tri-Senior Housing consists of:

• West End Gardens I: three four-story buildings with 74 units located at 1002-22 44th Street on 10th Avenue between 44th and 45th Streets in Borough Park;
• West End Gardens II: a four-story building with 40 units located at 1017 44th Street between 10th Avenue and Fort Hamilton Parkway in Borough Park; and
• Webster Terrace: a nine-story building with 89 units located at 680 Ocean Avenue in the Flatbush/Kensington section of Brooklyn.

The owner is Tri-Senior Associates LP, which is controlled by Southern Brooklyn Community Organization. The HFA loan will finance a renovation with the tenants remaining in place. The improvements include security system upgrades, new kitchens, new windows, exterior masonry repairs and upgraded elevators, community rooms and hallways.

The total cost of the project is more than $30.2 million. In addition to the $16.2 million HFA loan, Tri-Senior will receive project-based Federal Housing Assistance Payment contracts, an annual allocation of $956,700 in Federal Low-Income Housing Tax Credits and property tax exemptions negotiated with New York City.

Tri-Senior was originally built under the U.S. Department of Housing and Urban Development’s Section 202 direct loan program, which is the Federal government’s principle vehicle for financing affordable senior housing.

St. Phillips Homes

An AHC grant of nearly $2.38 million will help finance the construction of a 14-story, 89-unit co-operative at 775 Lafayette Avenue between Throop and Tomkins Streets in the Bedford-Stuyvesant section of Brooklyn. Sixty-six of the units will be sold to households with incomes at or below specific limits, which range from $63,504 to $94,122 for a family of four based on the low income limits set by the U.S. Department of Housing and Urban Development.

A preference will be given to residents of the local community for 50% of the units. In addition, a preference will be given to city employees for 5% of the units and a preference will be given to uniformed officers of the New York Police Department for another 5% of the units.

The grant was approved for the New York City Housing Partnership through its NYC Partnership Housing Development Fund Company, Inc. affiliate. The developers are 775 Lafayette Avenue, LLC, which is controlled by the principals of TNS Development Group, Ltd.

The total development cost is $24.9 million. In addition to AHC’s $2.38 million in financing, St. Phillips Homes will receive $1.65 million in HOME Funds from the NYC Department of Housing Preservation and Development (HPD) and $1.5 million in Housing Trust Funds from HPD.

Halsey Street and Marcus Garvey Boulevard Project

An AHC grant of $360,000 will help finance the construction of three three-story buildings containing a total of nine condominium units on Halsey Street and Marcus Garvey Boulevard in the Bedford-Stuyvesant section of Brooklyn. The units will be sold to households with incomes of no more than $56,700, HUD’s low income limits for a family of four.

The grant was approved for the New York City Housing Partnership through its NYC Partnership Housing Development Fund Company, Inc. affiliate. The developer is Habitat for Humanity-New York, the local not-for-profit affiliate of Habitat International.

The total development cost is $3.1 million. In addition to AHC’s $360,000 in financing, the project will receive $568,000 in Resolution A Funds from the Brooklyn Borough President’s Office and $1.5 million in donations from individual, foundation and corporate sponsors.

Far Rockaway

An AHC grant of $480,000 will help finance construction of six two-family homes at two locations in Far Rockaway, Queens: 503 Beach 22 Street and 610 Bay 25 Street. The units will be sold to households with incomes of up to $73,640, 112% of HUD’s low income limits for a family of six.

The grant was approved for the New York City Housing Partnership through its NYC Partnership Housing Development Fund Company, Inc. affiliate. The developer and builder is Salphin Development Group, LLC, which is controlled by Perry Finkleman, principal of American Development Group, LLC, and Sally Love Solinca and Herschel Solinca, principals of Sally Love Associates.

The total development cost is $3.3 million. In addition to the AHC financing of $480,000, the project will receive land subordination of $400,000 from NYC HPD.

West 115th Street Lofts

An AHC grant of $240,000 will help finance 36 condominium units in two seven-story buildings located at 237 and 247 West 115th Street in Harlem. The units will be sold to households with incomes of up to $50,792, which is 112% of HUD’s low income limits for a family of two.

The grant was approved for the New York City Housing Partnership through its NYC Partnership Housing Development Fund Company, Inc. affiliate. The developer is West 115th Street, LLC/POKO Partners, whose principals are Kenneth M. and Richard Olson.

The total development cost is more than $1.65 million. In addition to the AHC financing of $240,000, the project will receive land subordination of $35,000 from HPD.

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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, 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.

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Posted Friday September 21, 2007 at 02:55 pm by New York State Housing Finance Agency