DHCR Announces $8.9 Million to Build and Preserve Over 400 Units of Affordable Housing in the North Country

ALBANY, NY (06/30/2008)(readMedia)-- The Division of Housing and Community Renewal (DHCR) today approved more than $8 million in funding that will help build and preserve 441 units of affordable housing in counties throughout the North Country.

The Franklin Building in Watertown has been awarded 1.5 million in funding and $298,000 in tax credits that are expected to generate approximately $2.5 million in additional funds. The historic building in the city's Public Square will be developed into 16 affordable apartments and eight street-level commercial units. This is integral to the city's efforts to revitalize downtown and address housing needs in the Fort Drum area. Apartments will provide homes for working families, with five units designated for homeless families. Units will feature Energy Star appliances, light fixtures, and heating systems.

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 the North Country include:

• Capital Projects--More than $4.9 million which is expected to leverage approximately $13.6 million in additional funding and produce 63 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--$2.7 million to build or rehabilitate 135 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 - $705,000 to make accessibility modifications to 54 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 - More than $500,000 to make emergency repairs to approximately 200 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.

A full list of all DHCR awards approved today is attached. Additional information on each of the awards is available on the agency's website: www.nysdhcr.gov

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