NYS Housing Finance Agency Approves $18 Million in Financing for 179 Affordable Housing Units in Hudson Valley

NEW YORK, NY (11/02/2007)(readMedia)-- The board of the New York State Housing Finance Agency (HFA) yesterday approved $18 million in financing to build and preserve 179 affordable housing units in the Hudson Valley.

“We are pleased to be able to assist in upgrading the Overlook Apartments, and ensuring that they stay affordable for the next four decades. We are equally pleased that the Birches at Esopus Senior Apartments will create affordable units for seniors in Ulster to live in,” said Priscilla Almodovar, President and Chief Executive Officer of HFA.

HFA approved $6 million in financing for capital improvements to preserve the 100-unit Overlook Apartments in Middletown, Orange County, and $12 million to finance the construction of The Birches, an 81-unit senior independent living apartment complex in Esopus, Ulster County.

The two Hudson Valley projects are among 13 approved by HFA and the New York State Affordable Housing Corporation that will provide a total of $510 million in financing and grants for affordable housing. The actions will help build and renovate 1,182 affordable housing units across New York State.

With these actions, HFA and its affiliated agencies have now approved financing to create and preserve 4,739 units of affordable housing in New York State since January 1, 2007.

Overlook Apartments

Overlook Apartments is an affordable multifamily rental housing project with 100 units in six two-story buildings at 250 Overlook Drive, Middletown. The owner plans a rehabilitation that will not require tenants to be relocated. The work consists of new siding, windows, landscaping, bathrooms and kitchens, as well as replacement of two boilers and installation of security cameras.

Ninety-nine of the units will be reserved for households with incomes at or below 60% of the Area Median Income of Orange County, or $61,120 for a family of four.

The owner will be Overlook Preservation LP, which is controlled by The Related Companies, Inc. The project is being acquired from Middletown Overlook Associates, whose partners include The Related Companies.

The total project cost is nearly $11.4 million. In addition to a $6 million HFA mortgage, the development will receive an annual allocation of $311,600 in Federal Low-Income Housing Tax Credits; a Section 8 project-based subsidy; a payment in lieu of taxes agreement with the City of Middletown; and assumption of an existing mortgage restructuring note from the U.S. Department of Housing and Urban Development of approximately $3.1 million.

The Birches

The Birches at Esopus Senior Apartments will consist of four one-story cottage-style buildings clustered around a two-story building at 15-51 Sorbello Lane off Broadway (U.S. Route 9W) in the Town of Esopus. The project will have 80 rental units for seniors aged 55 and over.

All of the units will be set aside for senior households with incomes at or below 60% of the Area Median Income for the Kingston area, or $40,650 for a family of two.

The developer is Birchez Associates LLC, which is controlled by Steven L. Aaron and Elant, Inc. Elant will have an on-site office and provide health care services to the residents.

The project’s total cost is $16.8 million. HFA is providing a $9.7 million mortgage and a subsidy loan of nearly $2.37 million. In addition, the project will receive an annual allocation of $711,689 in Federal Low-Income Housing Tax Credits and a State Housing Trust Fund Homes for Working Families loan of $2.835 million. It will also benefit from a payment in lieu of taxes agreement with the Town of Esopus.

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The NYS Housing Finance Agency was created in 1960 to finance the construction and rehabilitation of multi-family affordable rental housing in New York State.

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