NYS Housing Finance Agency Approves $30.5M in Financing to Renovate 282 Affordable Housing Units in Buffalo

NEW YORK, NY (09/10/2009)(readMedia)-- The board of the New York State Housing Finance Agency (HFA) today approved $30.5 million in financing to renovate two apartment complexes with 482 units of affordable housing in the City of Buffalo.

"These projects will help upgrade the aging housing stock of Western New York," said Priscilla Almodovar, HFA President and Chief Executive Officer. "They reinforce the Paterson administration's mission to preserve affordable housing even in these difficult economic times."

Pine Harbor Apartments

HFA approved $13.5 million in financing to acquire and renovate the low-income 206-unit Mitchell Lama multifamily rental development located at 10 Seventh Street in Buffalo. Built in 1975, Pine Harbor will be purchased by an entity controlled by The Related Companies, Inc., and another Related entity will manage the property.

Related will undertake a moderate rehab with the tenants remaining in place. The proposed scope of work includes new windows and roof, a security monitoring system, bathroom and kitchen fixture upgrades, and new landscaping. Most of the units will be reserved for tenants with household incomes under $38,100 for a family of four.

The total development cost is nearly $17.5 million. In addition to the HFA financing, the project will receive an annual allocation of $615,000 in Federal Low-Income Housing Tax Credits; HUD-enhanced vouchers; a property tax abatement; an Interest Rate Reduction Agreement for $3.54 million; and an allocation from the Federal Tax Credit Assistance Program (TCAP) created by the Federal stimulus bill.

The Gardens Apartments

HFA approved $17 million in financing to acquire and renovate the 276-unit rental apartment complex located at 1, 2 & 3 West Cleveland Drive in Buffalo. The project, built as U.S. Department of Defense housing in 1946, consists of 76 two-story buildings on a 21-acre site. The Gardens will be purchased by the Atlantic Housing Foundation, a nonprofit organization that preserves affordable housing and provides related services for low-income families. Affinity Renewal Development will manage the property.

Tenants will be temporarily relocated within the complex during the renovations. The proposed scope of work includes new roofs, bathrooms, kitchens and sidewalks; new electrical wiring; installation of security cameras; a new laundry facility; and installation of a playground. The units will be reserved for tenants with household incomes under $38,100 for a family of four.

The total development cost is $25 million. In addition to HFA financing, the project is expected to receive an annual allocation of $677,123 in Federal Low-Income Housing Tax Credits; an annual allocation of $296,415 in State Low Income Housing Tax Credits; an allocation of $2.2 million in Federal Historic Tax Credits; an allocation of $1.18 million in State Historic Tax Credits; a $1.6 million Weatherization Program loan; and a payment-in-lieu-of-taxes agreement with the City of Buffalo.

Also, an HFA subsidiary, the New York State Affordable Housing Corporation (AHC), approved a $748,000 grant to Habitat for Humanity of New York State to build 22 single-family homes in nine counties across the state, including Erie and Niagara Counties. The homes will be built on land donated by the local municipalities.

All the homes will include Energy Star appliances and low-cost, energy-efficient heating and cooling systems. Habitat for Humanity of New York State will act as the developer for the project and oversee the selection and supervision of builders, construction monitors and maintain progress reports. Local Habitat affiliates will act as the builders and be responsible for the evaluation, screening and selection of applicants.

Homeowners will be required to complete 300 to 500 hours of sweat equity on the construction of their home in lieu of a significant down payment. The grant awards will be limited to households earning up $31,750 for a family of four in Erie and Niagara Counties.

The total cost of the project is $3.1 million. In addition to the AHC grant, the project will be funded with $461,825 in program funds provided by Habitat affiliates and land donated by the counties.

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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.

AHC, an HFA subsidiary, 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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