NYS Housing Finance Agency Approves $10M in Financing to Renovate 227 Affordable Apartments in Warren County

NEW YORK, NY (05/13/2010)(readMedia)-- The board of the New York State Housing Finance Agency (HFA) today approved $10 million in financing to undertake major capital improvements at the Montcalm Apartments, a 227-unit affordable housing complex located in Warren County.

"The financing we approved today will improve the housing stock and the quality of life of residents of Warren County," said Brian E. Lawlor, HFA President and CEO. "Our actions demonstrate Governor David A. Paterson's commitment to providing affordable housing even in these difficult economic times."

Montcalm Apartments, located at 220 Burke Drive in the Town of Queensbury, was built in the early 1970s and consists of 15 buildings located on a nearly 23-acre site.

HFA approved $10 million in financing for the acquisition and renovation of the apartments by Montcalm Apartments Co., LLC, which is controlled by Liberty Affordable Housing, Inc. Renovations include sewage plant upgrades, roof replacement, new flooring, kitchen and bathroom upgrades, new appliances and landscaping.

Most of the units will be reserved for tenants with household incomes under $35,640 for a family of four. The project is currently 100% occupied and there is a waiting list of prospective tenants. The HFA loan will be insured by the Mortgage Insurance Fund of its sister agency, the State of New York Mortgage Agency (SONYMA), through its "Day 1" program. Under this program, SONYMA insures construction as well as permanent loans when HFA finances moderate renovations of affordable multifamily properties.

The total cost of the project is $14.7 million. In addition to HFA financing, the project is expected to receive a Section 8 project-based subsidy to help pay the debt service for 169 of the units; Section 8 enhanced vouchers for 57 tenants; an annual allocation of $440,000 in Federal Low-Income Housing Tax Credits; and a property tax abatement from the Town of Queensbury.

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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.

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