NYS HFA and NYS AHC Approve $3.2 million in Financing to Renovate 146 Housing Units in the Southern Tier

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 $3.2 million in financing to renovate 146 affordable housing units, primarily for seniors living in the Southern Tier.

"These projects will improve the housing stock and the quality of life for seniors in the Southern Tier," said Priscilla Almodovar, President and Chief Executive Officer of HFA and AHC. "They also reinforce Governor Paterson's mission of providing affordable housing even in these difficult economic times."

McGraw House

HFA approved a $2.9 million subsidy loan to finance capital improvements at the 106-unit McGraw House located at 221 South Geneva Street in the City of Ithaca. The renovations are expected to lower utility costs by an estimated 25%.

McGraw House tenants are predominantly low- and moderate-income seniors. The renovation ensures that the project will remain in the state's Mitchell Lama program for another 40 years. The work includes installation of energy-efficient windows, new kitchen and bathroom fixtures, Energy Star appliances and lighting, high-efficiency heating and cooling systems and a new roof.

In addition to the HFA subsidy loan, the project will receive a $2.4 million loan from the NYS Housing Trust Fund Corporation. The project will also continue to receive Section 236 Interest Reduction Payments (IRP) until its original HFA mortgage is paid off in 2013.

Cuba Community Development Corporation

AHC approved a $300,000 grant to the Cuba Community Development Corporation (CCDC) to renovate 40 single-family homes in the towns of Belfast, Bolivar, Cuba, Clarksville, Friendship, New Hudson and Wirt in Allegany County. These towns have a significant number of substandard housing units.

The grant will be used to correct major environmental, health or safety problems necessary for housing code compliance. Homeowners will be selected on a first-come, first-served basis. Elderly and/or frail elderly will be given priority, as well as those persons with physical disabilities. The household income limit for participation in the program is $39,334 for a family of two.

The total cost of the project is $1.07 million. In addition to the AHC grant, the project will receive $400,000 in HOME funds provided by the NYS Housing Trust Fund; $335,000 in Community Development Block Grant funds from the NYS Division of Housing and Community Renewal; and a $30,000 loan from the Cuba Community Development Corporation's revolving loan fund.

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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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