NYS HFA and AHC Approve $25.5M in Financing to Build and Renovate 276 Affordable Housing Units on Long Island

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 nearly $25.5 million in financing to build and renovate 276 units of affordable housing on Long Island.

"These projects will create new affordable housing and renovate existing housing throughout Long Island and ensure that these homes remain affordable for the foreseeable future," said Priscilla Almodovar, HFA and AHC President and Chief Executive Officer. "Our financing reinforces the Paterson administration's mission to protect affordable housing even in these difficult economic times."

Bedell Terrace

HFA approved $24.6 million in financing for the acquisition and renovation of Bedell Terrace, a 244-unit rental development located at 10-26 Bedell Street and 91-101 and 105-145 Terrace Avenue in the Village of Hempstead. The project consists of 26 buildings constructed in the 1920s that are in need of major capital improvements.

The development, which is currently only two-thirds occupied, will be purchased and renovated by an entity controlled by Omni New York, whose general partners are Eugene Schneur and Mo Vaughn, the former New York Met.

The renovations will be undertaken with the tenants remaining in place. Improvements include replacement and upgrading of structural systems, including plumbing and electrical systems; upgrading common areas; and installing new boilers, roofs, floors, windows, intercoms and bathroom and kitchen fixtures. Nearly all of the units will be set aside for tenants with household incomes under $61,080 for a family of four.

The total development cost is $43.2 million. In addition to the HFA financing, the project will receive an annual allocation of nearly $1.57 million in Federal Low-Income Housing Tax Credits; a payment-in-lieu-of-taxes agreement with the Nassau County Industrial Development Agency; $1 million in Nassau County HOME funds; $1.5 million in Nassau County Neighborhood Stabilization Program funds; $250,000 in Community Development Block Grant (CDBG) funds from Nassau County; $850,000 in additional Nassau County funding; $440,000 from National Grid, the local utility; nearly $1.5 million in Weatherization Program funding from the NYS Division of Housing and Community Renewal; and an allocation from the Federal Tax Credit Assistance Program (TCAP) created by the Federal stimulus bill.

Town of East Hampton Home Improvement Program

AHC approved a $60,000 grant to East Hampton's Office of Housing and Community Development to renovate 10 homes owned by low-income families in the town. The scope of the work includes structural and foundation deficiencies, framing, flooring, roofing, porches, electrical systems, plumbing fixtures, heating systems, lead paint hazards, window replacement, well and septic system and weatherization. Awards will be limited to households earning up to $91,213 for a family of four.

The total cost of the project is $110,000. In addition to the AHC grant, the project will be funded by $50,000 in CDBG funds from the U.S. Department of Housing and Urban Development (HUD).

Inwood

AHC approved a $240,000 grant to the Nassau/Suffolk Partnership Housing Development Fund Corporation, Inc., an affiliate of the Long Island Housing Partnership, to build four single-family homes and one two-family home in the Inwood section of the Town of Hempstead. Awards will be made to households earning up to $91,213 for a family of four.

The total cost of the project is $1.71 million. In addition to the AHC grant, the project will be funded with $620,000 in HOME funds provided by Nassau County and homeowner mortgages and equity.

Long Island Homeownership Program

AHC approved a $580,000 grant to Community Housing Innovations, Inc. (CHI) for the acquisition and rehab of 10 single-family and three two-family homes in Nassau and Suffolk Counties. The homes will be purchased in neighborhoods throughout Long Island so as not to contribute to concentrations of affordable housing units in any specific area.

Homebuyers will be required to participate in CHI's homebuyer education program. CHI will also help homebuyers assess the repair work needed, evaluate the costs and assist in selecting contractors. Minimum down payments will be 5%. The income limit for grant recipients is $111,573 for a family of four.

The total cost of the project is $4.375 million. In addition to the AHC grant, the project will receive $300,000 in HOME funds allocated by the DHCR's Housing Trust Fund.

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 Nassau 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 $50,900 for a family of four in Nassau 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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