Governor Paterson Announces $253 Million in Affordable Housing Grants

Press Release

GOVERNOR PATERSON ANNOUNCES $253 MILLION IN AFFORDABLE HOUSING GRANTS

New York is First State to Utilize Economic Recovery Funds to Jump Start Affordable Housing Projects

Projects Will Provide Nearly 8,000 Units of Affordable Housing across New York

Governor David A. Paterson today announced $253 million in affordable housing grants coming to New York through the American Recovery and Reinvestment Act (ARRA). Governor Paterson was the first Governor in the nation to suggest that funding for such housing projects be included in the economic recovery package signed into law earlier this year. These New York projects are the first housing projects in the U.S. to be awarded funding through the ARRA, and will allow for the preservation of existing affordable housing as well as the construction of new units.

The first nine projects that will receive financing include the rehabilitation of an 80-unit complex in Albany, a 388-unit Mitchell Lama complex in Syracuse, 20 three-bedroom homes in Rochester, and a YWCA Residence for Women in Westchester County. The ARRA included $2.25 billion for the Tax Credit Assistance Program (TCAP), which will help State housing agencies kick-start the production of stalled projects that rely on low-income housing tax credits. New York's share will be $253 million and will be administered by the State Division of Housing and Community Renewal (DHCR). These first projects will create or rehabilitate nearly 1,400 units of affordable housing.

Governor Paterson made the announcement in Harlem, at the future site of Erbograph Apartments, which will be an 8-story building providing 64 affordable units for very low-income elderly and frail elderly households. He was joined by Congressman Charles B. Rangel, a leader in the fight for federal housing assistance.

"Thanks to the leadership, teamwork and tireless efforts of the entire New York delegation, we are able to quickly move stimulus funds into our communities and take full advantage of the construction season," said Governor Paterson. "Never has the need for affordable housing been as great as it is today. As we move forward, we will be financing additional affordable housing developments, revitalizing communities, creating much-needed jobs and stimulating local economies throughout Upstate New York."

Senator Kirsten Gillibrand said: "I welcome Governor Paterson's announcement today that stimulus funds we passed in Congress are quickly making their way to preserving and increasing the stock of critically needed affordable housing developments across New York State. Along with Senator Schumer and the rest of the New York Congressional Delegation, I will continue to fight in Congress to increase the government's investments in public housing so that the thousands of New Yorkers who depend on these units are not left out in the cold."

Congressman Charles B. Rangel said: "I commend Governor Paterson for his leadership in designating these funds in support of affordable housing. He has recognized the critical need to act to protect thousands of tenants from being displaced by the economics that have reduced private investment in affordable housing. Working with our allies in the White House and on Capitol Hill, this Governor has responded to the urgent need to have government step in with public investment to maintain the stability of our communities and create new opportunities for affordable housing. I also want to commend and congratulate Lucille McEwen and Harlem Congregations for Community Improvement on receiving this grant award and for providing affordable housing not just for our seniors, but for all working, and poor families residing in my Congressional District."

The projects include the acquisition and rehabilitation of three Mitchell-Lama apartment buildings by HFA and six "shovel ready" projects identified by DHCR.

Two of the DHCR projects received Low Income Housing Tax Credits (LIHC) from the agency in June of last year. Although the tax credits have traditionally been the most effective and reliable source of equity for the developers of affordable housing, the financial downturn has had a devastating effect on their value, creating funding gaps that stalled the projects.

The ARRA included $2.25 billion for the Tax Credit Assistance Program (TCAP) which will help State housing agencies to kick-start the production of the stalled projects that rely on low-income housing tax credits. New York's share will be $253 million and will be administered by DHCR.

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