NYS Housing Finance Agency Approves $42.6 million in Financing for Affordable Housing in New York City

NEW YORK, NY (08/22/2007)(readMedia)-- The board of the New York State Housing Financing Agency (HFA) today approved $30.1 million in financing to build 151 units of affordable housing in Brooklyn and $12.5 million in financing for major improvements at the 100-unit Abyssinian Towers in Manhattan.

“The state’s Housing Finance Agency is dedicated to using its scarce resources to preserve and create affordable housing in high cost areas, like New York City, and that’s what we are doing today,” said Priscilla Almodovar, President and Chief Executive Officer of HFA. “With these two financings, and by using our internally generated resources, tenants in Harlem and Brooklyn will be assured their housing stays affordable for the foreseeable future.”

Prospect Plaza

The new Brooklyn development, Prospect Plaza, will provide for construction of 151 units of multifamily housing in 20 semi-detached buildings located on the southwest portion of the block bordered by Prospect Place, Saratoga Avenue, Park Place and Howard Avenue in the Ocean-Hill/Brownsville section. The construction of Prospect Plaza is part of the overall revitalization of the surrounding area, which also includes New York City Housing Authority properties.

Units will be reserved for tenants with incomes at or below $34,080, or 60% of the Area Median Income in New York City, adjusted for household size. During the initial lease-up period, up to 30% of the project’s units will be set aside for former tenants of one of the towers in the nearby Prospect Plaza Homes that was demolished in 2004.

The project also includes 2,420 square feet of ground floor commercial space in two of the buildings, one along Saratoga Avenue and the other at the corner of Saratoga Avenue and Park Place.

The site is currently vacant and owned by the NYC Department of Housing, Preservation and Development. It is expected to be conveyed to the developer, L&M Prospect Plaza, LLC, for a nominal fee. The principals in L&M Prospect Plaza are Sanford Loewentheil and Ronald Moelis.

The total project cost is $45.6 million. Financing includes an HFA mortgage of $25.7 million; an HFA subsidy loan of $4.4 million; 421-a negotiable certificates worth $8.9 million; an annual allocation of $1.95 million in Federal Low-Income Housing Tax Credits; a $2 million loan from the NYS Division of Housing and Community Renewal’s Housing Trust Fund; and real estate tax exemption and abatement in accordance with HPD regulations.

Abyssinian Towers

In exchange for the financing of Abyssinian Towers, the owner, the Abyssinian Development Corporation, has agreed to keep rents affordable for an additional 40 years. All of the apartments in Abyssinian Towers are set aside for seniors aged 62 or older with incomes at or below $34,080, or 60% of New York City’s AMI.

“Preserving affordable housing is a major priority for the Spitzer administration,” Ms. Almodovar said. “This financing assures seniors in Abyssinian Towers that their apartments will be improved while rents remain affordable for the foreseeable future.”

Abyssinian Towers was one of four preservation projects approved for financing by the HFA board today. With these actions, HFA has now approved financing to preserve 1,216 units of affordable housing in New York State since January 1, 2007.

Abyssinian Towers is an eight-story, 100-unit building located at 50 West 131st Street, Manhattan. Its owner, the Abyssinian Development Corporation, was founded in 1989 by the congregants of the Abyssinian Baptist Church to help revitalize the Harlem community.

The HFA loan will finance development improvements so as not to displace tenants. The renovations include repairing exterior areas; upgrading the landscaping and the building façade; repairing the roof; replacing windows and kitchen cabinets; and installing new bathroom fixtures, vanities, wall tiling and cabinets. Also, new security cameras and an intercom will be installed and the laundry room, elevators and electrical systems will be upgraded.

The total project cost is nearly $23.1 million. In addition to the $12.5 million HFA loan, Abyssinian Towers will receive project-based Federal Housing Assistance Payment contracts, an annual allocation of $768,000 in Federal Low-Income Housing Tax Credits and a real estate tax exemption or abatement from New York City.

Abyssinian Towers was built in 1989 under the U.S. Department of Housing and Urban Development’s Section 202 direct loan program, which is the Federal government’s principal vehicle for financing affordable senior housing.

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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.

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Posted Wednesday August 22, 2007 at 04:01 pm by New York State Housing Finance Agency