NYS Housing Finance Agency Approves $26.9 Million in Financing to Build Two Supportive Housing Projects in NYC

NEW YORK, NY (05/13/2010)(readMedia)-- The board of the New York State Housing Finance Agency (HFA) today approved more than $26.9 million in financing to build two supportive housing projects with a total of 120 units in New York City.

"These approvals demonstrate our commitment to work with the nonprofit community to create much-needed housing in New York City for people with special needs," said Brian E. Lawlor, HFA President and CEO. "They are also consistent with Governor David A. Paterson's mission to provide affordable housing despite the economic recession."

Concern MacDougal Apartments

HFA approved $14.8 million in financing to help build the 65-unit Concern MacDougal Apartments at 322-330 MacDougal Street in the Bushwick section of Brooklyn. The project will provide fully furnished studio apartments for chronically homeless individuals with serious mental illness. The project is sponsored by the New York/New York III program, under which New York City and New York State provide funding to nonprofit providers and developers to create supportive housing for homeless individuals with mental illness and other disabilities.

The project will be licensed and partially financed by the NYS Office of Mental Health (OMH). It will be staffed 24 hours a day and will provide a wide range of rehabilitation and training services to tenants.

The owner, Concern MacDougal LLC, is an entity controlled by Concerned for Independent Living Inc., a nonprofit housing and mental health services corporation. The State of New York Mortgage Agency (SONYMA), through its Mortgage Insurance Fund, will insure the HFA mortgage.

The total cost of the project is $21.8 million. In addition to HFA financing, the project is expected to receive an annual allocation of $809,835 in Federal Low-Income Housing Tax Credits; an $11.88 million OMH construction loan; up to $995,176 in annual debt service payments by OMH; an OMH grant of $249,000 for furniture and fixtures; a $15,386 per-bed annual subsidy from OMH for operations; a 30-year subordinate loan of $967,087 from the Federal Home Loan Bank; and a probable tax abatement or exemption from the NYC Department of Housing Preservation and Development (HPD).

Hughes House Apartments

HFA approved $12.16 million in financing to help build the Hughes House Apartments, a five-story apartment building at 1974 Hughes Avenue in the East Tremont section of the Bronx. The project will create 55 fully furnished efficiency apartments for individuals with serious and persistent mental illness who also have chemical addictions. The facility will be staffed 24 hours a day and will provide on-site services from mental health, substance abuse and vocational counselors.

The owner, 1974 Hughes Ave., L.P., is controlled by Urban Pathways, Inc., a nonprofit that provides supportive housing and outreach services to the homeless and the mentally ill. The State of New York Mortgage Agency (SONYMA), through its Mortgage Insurance Fund, will insure the HFA mortgage.

The total cost of the project is more than $17 million. In addition to HFA financing, the project is expected to receive an annual allocation of $582,815 in Federal Low-Income Housing Tax Credits; a $10.15 million OMH construction loan; a $192,500 OMH grant for furniture and fixtures; up to $964,644 in annual debt service payments by OMH; a $13,253 per-bed annual subsidy from OMH for operations; a $710,587 subordinate loan from the Federal Home Loan Bank; and a probable tax abatement or exemption from HPD.

______

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.

###