NYS HFA and NYS AHC Approve $12 million in Financing to Build 57 Housing Units in Suffolk County

NEW YORK, NY (11/05/2009)(readMedia)-- The boards of the New York State Housing Finance Agency (HFA) and the New York Affordable Housing Corporation (AHC) today approved $12 million in financing to create 57 affordable housing units in Suffolk County-including an apartment building for artists in Patchogue.

"Our financings help meet the demand for affordable housing in Suffolk County," said Priscilla Almodovar, President and Chief Executive Officer of HFA and AHC. "We are particularly proud to be financing housing for those in the artistic community and continuing our partnership with Habitat for Humanity. These financings reinforce Governor Paterson's vision of making New York a better place to live and work."

Artspace Patchogue Loft Apartments

HFA approved $11.71 million in financing to build a five-story, 45-unit rental apartment complex that will give preference to artists and those who work in the artist community. The project will be located at 20 Terry Street in the Village of Patchogue.

The borrower is Artspace Projects Inc., a nonprofit that creates and preserves affordable space for artists and arts organizations. The project site consists of five parcels that are vacant except for a vacant building that will be demolished prior to construction. The site is located within walking distance of transportation, shopping and healthcare facilities. The project will be reserved for tenants with incomes up to $61,080 for a family of four.

The total development cost is nearly $17.9 million. In addition to HFA financing, the project will receive an annual allocation of $712,841 in 4% Federal Low-Income Housing Tax Credits; a $610,000 allocation of State Low-Income Housing Tax Credits; a $1.575 million loan from the NYS Housing Trust Fund Homes for Working Families; a $660,000 Suffolk County HOME Loan; a Suffolk County Acquisition and Infrastructure Loan of nearly $1.95 million; a $150,000 loan from the Village of Patchogue; a $250,000 philanthropic loan; and a 30-year payment in lieu of taxes agreement with the Village of Patchogue.

Habitat for Humanity of Suffolk

AHC approved a $300,000 grant to Habitat for Humanity of Suffolk County to build 12 affordable homes on scattered sites in Suffolk County.

The homes will be built on land donated by Suffolk County. Habitat will install solar energy on each home under the Long Island Power Authority Solar Pioneer Rebate Program, which helps cover the cost of the hardware and materials and lowers long-term energy costs. The homes will also be equipped with Energy Star appliances.

Potential applicants are required to complete a homeownership seminar provided by the Community Development Corporation of Long Island prior to applying to purchase a home. The homeowners will also be required to complete 300 hours of sweat equity to help build their own and other Habitat homes. Upon completion of the home, Habitat will sell the house at cost and provide homeowners with a 20-year mortgage at zero percent interest. The household income limit to participate in the program is $91,213 for a family of four.

The total cost of the project is $1.2 million. In addition to the AHC grant, the project will be funded by $120,000 in Affordable Housing Program funds provided by the Federal Home Loan Bank of New York; land donated by Suffolk County; and Habitat-funded mortgages.

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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 HFA, 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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