NYS Housing Finance Agency Approves $57 Million in Financing to Build 280 Affordable Units in Brooklyn

NEW YORK, NY (09/10/2009)(readMedia)-- The board of the New York State Housing Finance Agency (HFA) today approved $57 million in financing to build two affordable housing projects in Brooklyn with a total of 280 units. More than half of the units will be reserved for low-income tenants with special needs.

"These financings reinforce our commitment to provide supportive housing for individuals with special needs, including veterans and the formerly homeless," said Priscilla Almodovar, HFA President and Chief Executive Officer. "These projects reinforce the Paterson administration's mission to create supportive housing even in these difficult economic times."

Genesis Neighborhood Plaza II

HFA approved $26.26 million in financing to construct a nine-story 119-unit development at 332-340 Snediker Avenue in the East New York section of Brooklyn. Forty-nine units will be reserved for veterans with special needs. Apartments will be rented to tenants with household incomes under $36,840 for a family of two.

The borrower is an entity controlled by HELP USA, a social service provider that builds supportive housing and provides supportive services for low-income residents.

The total development cost is more than $37.88 million. In addition to the HFA financing, it is expected that the project will receive an annual allocation of $1.467 million in Federal Low-Income Housing Tax Credits; $4.937 million in funds from the NYS Homeless Housing Assistance Corporation; a $4.662 million loan from the NYC Department of Housing Preservation & Development (HPD); a $1.6 million loan from the Federal Home Loan Bank; project-based Section 8 rental subsidies; and local real estate tax abatements.

Hegeman Avenue Residence

HFA approved $30.75 million in financing to build a five-story 161-unit supportive rental housing project at 39 Hegeman Avenue in the Brownsville section of Brooklyn. One hundred units will be set aside for formerly homeless adults who have been diagnosed with HIV/AIDS or mental illness. The remaining units will be reserved for single low-income working adults. The development is part of New York City's NY/NY III initiative to reduce homelessness by creating supportive housing.

All the units will be reserved for tenants with household incomes of no more than $32,280 for single-person households.

The borrower will be an entity controlled by Common Ground, a nonprofit housing organization committed to solving homelessness.

The total cost of the project is nearly $43 million. In addition to HFA financing, it is expected that the project will receive an annual allocation of $1.57 million in Federal Low-Income Housing Credits; a $17.6 million Supportive Housing Loan from HPD; a $5.5 million loan from the NYS Homeless Housing Assistance Corporation; a $250,000 Brooklyn Borough President Capital Loan; a $1.65 million Affordable Housing Program Loan from the Federal Home Loan Bank; and local real estate tax abatements.

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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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