NYS HFA and AHC Approve $16.5M in Financing to Rehab 403 Affordable Housing Units in Onondaga County

NEW YORK, NY (09/10/2009)(readMedia)-- The boards of the New York State Housing Finance Agency (HFA) and the New York State Affordable Housing Corporation (AHC) today approved $16.5 million in financing to renovate 403 affordable housing units in Onondaga County.

"This financing will upgrade the aging housing stock in Central New York and improve the quality of life for its residents," Priscilla Almodovar, HFA and AHC President and Chief Executive Officer. "These projects reinforce the Paterson administration's mission to preserve existing affordable housing even in these difficult economic times."

Parkside Commons

HFA approved $16.2 million in financing to acquire and renovate Parkside Commons, a 393-unit Mitchell Lama project located at 1935-2005 East Fayette Street in the City of Syracuse. The 14-building complex was built in two phases in 1948 and 1962 and was last renovated in 1980.

The borrower, an entity controlled by Related Apartment Preservation LLC, is purchasing the project from Rolling Green Associates. Related plans a substantial renovation with tenants remaining in place. The work includes interior and exterior capital improvements and apartment upgrades. Apartments will be reserved for tenants with household incomes up to $38,220 for a family of four.

The total development cost is $28.6 million. In addition to HFA financing, the project will receive an annual allocation of more than $1 million in Federal Low-Income Housing Tax Credits; a payment-in-lieu-of-tax agreement with the City of Syracuse; Section 8 project-based subsidies; and an allocation from the Federal Tax Credit Assistance Program (TCAP) created by the Federal stimulus bill.

Onondaga County Purchase-Rehab Program

AHC approved a $300,000 grant to the Onondaga County Community Development Division to acquire and rehab 10 single-family homes Onondaga County. The properties are expected to be foreclosed or tax-foreclosed properties located within the county but not in the City of Syracuse.

Improvements include roof replacement, furnace replacement, correction of structural defects, and electrical and plumbing upgrades. Grant eligibility will be limited to households earning no more than $63,924 for a family of four.

The total cost of the project is $1.173 million. In addition to the AHC grant, the project will be funded by construction financing from the Onondaga County Community Development Division and Home Headquarters, and permanent financing by homeowner mortgages and homeowner equity.

AHC also approved a $748,000 grant to Habitat for Humanity of New York State to build 22 single-family homes in nine counties across the state, including Onondaga County. The homes will be built on land donated by the local municipalities.

All the homes will include Energy Star appliances and low-cost, energy-efficient heating and cooling systems. Habitat for Humanity of New York State will act as the developer for the project and oversee the selection and supervision of builders, construction monitors and maintain progress reports. Local Habitat affiliates will act as the builders and be responsible for the evaluation, screening and selection of applicants.

Homeowners will be required to complete 300 to 500 hours of sweat equity on the construction of their home in lieu of a significant down payment. The grant awards will be limited to households earning up $31,850 for a family of four in Onondaga County.

The total cost of the project is $3.1 million. In addition to the AHC grant, the project will be funded with $461,825 in program funds provided by Habitat affiliates and land donated by the counties.

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The NYS Housing Finance Agency was created in 1960 to sell bonds to finance the construction and rehabilitation of multifamily affordable rental housing in New York State.

AHC, an HFA subsidiary, 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.

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