New York State Approves $2.27 Million to Build and Rehab 181 Affordable Housing Units

NEW YORK, NY (04/08/2010)(readMedia)-- The boards of the New York State Housing Finance Agency (HFA) and the New York State Affordable Housing Corporation (AHC) today approved $2.27 million in funding to build and renovate 181 affordable housing units across the state.

The AHC board also authorized the agency to make grants up to $1 million as part of Governor David A. Paterson's new Sustainable Neighborhoods Initiative, which is aimed at revitalizing targeted neighborhoods in upstate cities by funding the renovation of vacant or blighted residential properties.

"These actions demonstrate that New York State continues to address its important housing needs even in these difficult economic times," the Governor said. "I am particularly pleased that AHC will provide the Sustainable Neighborhood Initiative with the funding necessary to help launch this important upstate project."

In addition, the board of the New York State Municipal Bond Bank Agency (MBBA), an affiliated agency, authorized the issuance of up to $150 million in Recovery Act Bonds to help finance the capital programs of six local governments: Alleghany, Broome, Madison, Oneida and Sullivan counties and the City of Ithaca.

Assembly Speaker Sheldon Silver said, "I commend AHC and HFA for recognizing the importance of providing affordable housing for New Yorkers. It's crucial that we do not lose sight of the needs of low- and middle-income families during these tough economic times and that we continue to look for creative ways to meet those needs."

Senate Majority Conference Leader John L. Sampson said, "Building and renovating affordable housing units revitalize neighborhoods and open the door to homeownership for more New Yorkers. These grants provide the opportunity to construct new affordable housing and breathe fresh life into blighted or vacant homes, making them safe and useful once again."

Assembly Housing Chair Vito Lopez said, "Families across the state are facing difficulties affording rent and mortgage payments. Affordable housing is critical to the well-being of individuals, families, and the economic health of our communities. These grants will help New Yorkers survive financially through the economic downturn."

State Senate Majority Leader Pedro Espada, Jr., who also serves as Chairman of the Senate Standing Committee on Housing, Construction and Community Development, said, "It is important for state government, even during difficult economic times, to fund capital projects such as these because they provide the impetus for economic recovery. This funding is a meaningful investment in the state economy because it will revitalize communities, address affordable housing needs, create good-paying jobs for local residents, and stimulate business for local contracting companies."

Judd S. Levy, HFA and AHC chairman, said, "Our grants will help create and renovate affordable housing in several regions of the state. We also continue our emphasis on financing supportive housing by providing up to a $250,000 grant to help build a homeless housing facility in Binghamton."

The projects follow:

Suffolk County: AHC approved a $1.3 million grant to the Nassau-Suffolk Partnership Housing Development Fund Company, Inc. to help build 40 affordable new homes in the Town of Islip.

Rockland County: AHC approved a $120,000 grant to the Rockland Housing Action Coalition, Inc. to build three affordable homes in the Town of Ramapo.

Monroe County: AHC approved a $300,000 grant to the South Wedge Planning Committee, Inc. to finance improvements of 65 single-family homes on Rochester's east side, and a $300,000 grant to the NCS Community Development Corporation to renovate 65 single-family homes on the west side of the city.

Broome County: HFA approved up to $250,000 in funding to Community Potential, Inc. to help finance an eight-unit homeless housing facility in the City of Binghamton.

Sustainable Neighborhood Initiative

The AHC board authorized the agency to make grants totaling $1 million for the $2 million Sustainable Neighborhoods Initiative that the Governor announced last month. The remaining $1 million will be provided by the NYS Division of Housing and Community Renewal.

Competitive Requests for Proposals for both planning and project funding are now being accepted from local governments and not-for-profits in upstate cities. All project funds will be provided to rehabilitation efforts undertaken pursuant to a comprehensive plan for redevelopment of targeted neighborhoods suffering from a high number of vacant or blighted residential properties.

Recovery Act Bonds

The MBBA board approval marks the second issuance of Recovery Act Bonds since the program began last fall. Under the program, the agency sells tax-exempt and Build America Bonds (BABs) and Recovery Zone Economic Development Bonds (RZEDBs), which were authorized by the Federal stimulus legislation, on behalf of local governments.

Sale of these bonds by MBBA helps local governments save money on their borrowing costs. BABs and RZEDBs are taxable bonds that receive Federal government subsidies for the life of the bonds.

MBBA sold $184.6 million in Recovery Act Bonds in November on behalf of six local governments. This second bond issuance of up to $150 million is expected to take place in early May.


HFA 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.

MBBA was created in 1972 to provide municipalities with access to the capital markets for special programs.