DHCR Announces $34 Million to Build and Preserve more than 1,000 Units of Affordable Housing in New York City

ALBANY, NY (06/30/2008)(readMedia)-- The Division of Housing and Community Renewal (DHCR) today approved nearly $34 million in funding that will help build and preserve approximately 1,049 units of affordable housing in counties throughout New York City.

The Via Verde housing complex in the Bronx will provide 109 units of affordable housing for low-income households. DHCR approved nearly $1.9 million in state and federal tax credits which are expected to leverage more than $37 million in additional investment.

Via Verde is an extraordinary example of collaboration between state and local governments, with additional funding provided by the NYC Department of Housing Preservation and Development and the NYS Energy Research Development Authority (NYSERDA).

The 20-story building will be outfitted with Energy Star rated appliances and light fixtures and will also feature more than 5,000 square feet of commercial space.

The development team of the Phipps Houses Group and The Jonathan Rose Companies with Dattner Architects and Grimshaw Architects plans to implement other green, energy saving features, such as a 52,000 square foot green roof, sun screens shading the south and west facades, high performance windows, and mechanical systems allowing for heating and cooling control for each individual unit.

The complex will help to redevelop a formerly vacant 60,000 square foot lot at156th Street and Brooke Avenue in the south Bronx, which had been condemned by the City in 1972. The development is conceived as a series of buildings, linked by a series of gardens beginning at ground level, which will collect rainwater and allow residents to harvest various fruits and vegetables. These gardens spiral as a promenade, up around the main courtyard of the project, ultimately reaching a sky terrace with views of Manhattan

A full list of projects is attached and can be found on DHCR's web site at www.nysdhcr.gov.

Governor Paterson said the funding is part of $137 million DHCR awarded statewide to impact 6,415 units of affordable housing-nearly twice the number of units created and preserved last year. "These awards will help developers leverage an additional $340 million in funding from federal, local and private sources. By maximizing the impact of our investment, we encourage businesses to grow and create jobs, revitalize communities, and provide homes for working families, senior citizens and people with disabilities."

DHCR Commissioner Deborah VanAmerongen said the dramatic increase in the number of affordable units created and preserved is "due to the commitment of Governor Paterson and the State Legislature, and the unprecedented increase in funding they entrusted to DHCR in the 2008-09 state budget." The new budget increased funding for the State's affordable housing programs by about $200 million over traditional levels. VanAmerongen said she plans to conduct a second round of funding awards later this year.

The awards approved today include grants, loans and tax credits, and fall into one of two general categories, Capital projects, which primarily involve new construction and major rehabilitation of multi-family rental housing, and Local Program Administrator (LPA) awards, which are used to fund important DHCR programs that help build, modify and rehabilitate housing for low income families, senior citizens and people with disabilities. This year's awards for New York City include:

• Capital Projects -- $28.2 million which is expected to leverage $173.5 million in additional equity and produce approximately 607 units of affordable housing. All the units created will meet high energy efficiency standards and provide an unprecedented level of accessibility for people with disabilities.
• The HOME Program - $2.3 million to build or rehabilitate approximately 89 units. The HOME program partners with local governments, private developers and community-based non-profit housing organizations to acquire, rehabilitate or construct housing, or to provide assistance to low-income home-buyers and renters.
• ACCESS to Home - $2.5 million to make accessibility modifications to approximately 148 units. ACCESS to Home provides financial assistance to property owners to make dwelling units accessible for low- and moderate income frail elderly and persons with disabilities. These modifications allow individuals to safely and comfortably continue to live in their homes and avoid institutional care.
• RESTORE -- $825,000 to make emergency repairs to approximately 209 units. RESTORE (Residential Emergency Services to Offer Repairs to the Elderly) helps low-income elderly homeowners pay for emergency repairs to eliminate hazardous conditions in their homes.

NEW OPPORTUNITIES, NEW OBSTACLES

VanAmerongen said because of the additional resources in the 2008-09 state budget, DHCR was able to provide 187 LPA awards statewide this year, more than double the 92 awards from last year. LPA awards this year totaled $50 million, as compared to $30 million last year, and will assist or create 4,464 units, far greater than last year's unit count of 1,734.

On the capital side, DHCR was challenged by the turmoil of the credit and mortgage markets and the resulting devaluation of state and federal tax credits, which developers sell to generate equity. However, thanks to increased funding in the new budget, DHCR was able to offset the loss in value of the credits. In all, capital awards will help build or preserve 40 affordable housing developments in 24 counties in every region of the state.

Additional information on each of the awards is available on the agency's website: www.nysdhcr.gov

-30-