News Alert: January 31
Municipal Bonds Excluded from Tax Cap
Bondbuyer.com reports that local governments have received word from White House advisers that municipal bonds will not be included in a proposed exemption cap for upper-income individuals.
President Obama's American Jobs Act that President Obama originally "proposed to limit the value of tax-exempt interest from muni bonds, as well as other tax expenditures and deductions, to 28% for all individuals with $200,000 or more of taxable income and married couples with $250,000 or more."
Critics of this proposal feared that such an exemption would shrink the demand for municipal bonds and thus raise the cost of public financing.
Click here for the full article.
News Alert: January 30
Harlem Artist Housing Project Receives Funding
Artspace Projects has announced that its PS109 artists' housing development has received $24 million in tax credits from the New York City Department of Housing Preservation and Development. The entire 10,000 square foot, 89-unit project will cost approximately $50 million to build.
The project is being developed with El Barrio’s Operation Fightback, an East Harlem community development organization.
News Alert: January 27
84-Unit Development Opens in Crotona Park
MacQuesten Development and the Union Grove Baptist Church announced the opening of Reverend Dr. Fletcher C. Crawford Apartments, an 84-unit low-income development in the Crotona Park East neighborhood of The Bronx. The new development is named in honor of the long-time Pastor of Union Grove Baptist Church, the Rev. Dr. Fletcher C. Crawford.
The total development cost was $26.6 million. Funding was provided by the following programs:
Click here for the full press release.
News Alert: January 27
Federal Home Loan Bank of New York Awards $33.6M in Affordable Housing Funds
The Federal Home Loan Bank of New York announced that it has awarded $33.6 million to affordable housing organizations throughout New York, New Jersey, Maryland and Pennsylvania. The New York communities to benefit from the awards include Albany, Brooklyn, Buffalo, Canandaigua, Clarkson, East Patchogue, Henrietta, Kirkville, Ithaca, Mt. Vernon, New York, New Rochelle, Niagara Falls, North Tonawanda, Norwich, Ossining, Rochester, Rome, Seneca Falls, Syracuse and Webster.
It is estimated that these funds "will result in the creation or rehabilitation of 2,837 affordable housing units, including more than 2,200 units dedicated to very low-income housing and nearly 2,700 units of affordable rental housing" and will stimulate $486 million in development activity.
Click here for the full press release.
News Alert: January 27
Ossining Moves Forward with Senior Housing Project
The Village of Ossining is moving ahead with a proposed 25-unit affordable senior citizen housing complex on the former site of an Elks Lodge on Main Street in the village.
Hudson EFT, LLC is planning to construct a three-story building on the 1.5-acre property comprised of 25 mostly one and two-bedroom rental apartments for seniors.
It is estimated that the building will open within 12 to 18 months.
Click here for the full article.
News Alert: January 26
Report Claims Vacant Properties Could Alleviate NYC Homelessness
A report released by Picture the Homeless and the Center for Community Planning & Development states its findings that there are more than 3,500 vacant buildings within New York City with enough space to house the city's entire homeless population.
The two organizations based their findings from a count conducted last year by 295 volunteers in 20 community districts. Their survey concluded that vacant buildings could accommodate hundreds of thousands of residents.
There are about 40,000 people in the homeless shelter system.
Kendall Jackman of Picture the Homeless is quoted as saying that "We can shut down the Department of Homeless Services. We don't need people to be in the shelter system. We don't need people to double up."
Picture the Homeless launched the count to rally support for City Council legislation introduced in 2009 that would require an official vacancy census.
HPD is now using stimulus funds to match low-income families with foreclosed homes but the city can't seize vacant units that have private owners.
Click here for the full Daily News article.
News Alert: January 26
HCR Seeks Comment on Implementation of Annual Action Plan
New York State Homes and Community Renewal (HCR) has announced it is seeking public comments on the implementation of its HUD-approved Annual Action Plan for 2011. HCR is currently drafting its Consolidated Annual Performance and Evaluation Report (CAPER) for 2011 in accordance with the provisions of the National Affordable Housing Act.
The public comment period will begin on Wednesday, February 22, 2012 and end on Wednesday, March 7, 2012, during which the draft 2011 CAPER will be available during the public comment period on the New York State Homes at www.nyshcr.org. In addition, copies can be requested by e-mail at HCRConPln@nyshcr.org or by telephoning 1-518-473-3031.
Written comments must be postmarked no later than March 7, 2012 and addressed to:
Nancy Moreland
NYS HCR
Hampton Plaza
38-40 State Street
Albany, NY 12207
E-mail comments must be sent by that date and e-mailed to: HCRConPln@nyshcr.org.
News Alert: January 23
HUD Allocates $93M in Flood Relief to New York State
The Department of Housing and Urban Development has announced that it is providing $400 million to eight states declared federal emergency areas in 2011. Of this amount, New York State will be receiving over $93 million. Orange County will receive $11,422,029 and Union Township will receive $10,137,818 while the rest will be directed towards rebuilding efforts in Schoharie, Tioga, Broome, Greene, and/or Orange Counties (in addition to its direct allocation from HUD).
Click here for the full press release.
News Alert: January 20
DHCR Employee Arrested for Theft of $1 Million
Agnes Bernier is accused of swiping hundreds of money orders since 2004 at the downtown Manhattan office of New York State Homes and Community Renewal. The federal-court indictment against her says that instead of processing money orders made out to the Housing Trust Fund Corporation, Bernier wrote her own name on them and deposited them into her bank accounts.
It is estimated that she allegedly stole $1 million over the past several years including 17 moey order deposits last month.
Click here for more information.
News Alert: January 19
Will Construction Loan Pricing Rise in 2012?
Housingfinance.com reports that increasing demand for construction loans may drive up the spreads charged by banks. It quotes Gary Mozer, principal and managing director of Los Angeles–based George Smith Partners, as saying that “One of the major banks that was lending everything at 225 basis points over LIBOR—then it was 250, and in December was 275—is hinting that it might [go] over 300 in 2012.”
The marketplace for construction financing is in flux with major banks such as Wells Fargo and Capital One "bullish" on the multifamily sector while insurance and pension entities possibly soften supply-demand pressures as they try to increase market share. Meanwhile FHA loans for developers that "have the patience" were priced near 5 percent in early January.
Click here for the full article.
News Alert: January 19
30-Unit Project Okayed for Buffalo Brownfield Site
Buffalo's Planning Board approved a $5.3 million plan to build 30 affordable townhouse units on a former brownfield site on East Ferry Street. The units will be marketed to low- and moderate-income households.
The project is being developed by a partnership between a partnership between the nonprofit development corporation of True Bethel Baptist Church and Belmont Housing Resources of Western New York with funding assistance for the project coming from federal HOME program funds through the Buffalo Urban Renewal Agency; the state Housing Trust Fund Corp.; and federal housing tax credits. Silvestri Architects designed the project.
News Alert: January 18
New York State 2012-13 Budget - Affordable Housing Highlights
Governor Andrew Cuomo has released his budget proposal for the coming fiscal year. The plan, which needs to be approved by the Legislature, closes an estimated $3.5 billion budget gap in the coming year with $2 billion in savings and $1.5 billion derived from the recently reworked tax code that increased levies on top earners.
The plan calls for total agency operations to decrease by four-tenths of a percent over the current fiscal year. As expected, the state will spend an additional 4 percent on education and Medicaid in the year ahead. The plan includes the creation of a new and less-generous pension tier for new employees that's anticipated to save local governments $79 billion over the next 30 years. The retirement age would be raised, and employees would be required to make increased contributions. Cuomo also plans to tie a share of school funding to the adoption of a statewide teacher evaluation system.
Cuomo recommends $291.71 million for the Division of Housing and Community Renewal. This is a decrease of $22.35 million from the 2011-12 Budget. The decrease primarily reflects the elimination of funding for the Neighborhood and Rural Preservation Programs and a reduction in excess Federal authority for the Small Cities Community Development Block Grant.
The proposed Budget recommends a workforce of 759 full time equivalents (FTEs) for the Division. This is an increase of 14 FTEs from the 2011-12 Budget. The increase reflects the additional staff needed to support the new Tenant Protection Unit in the Office of Rent Administration.
The Governor proposed the elimination of the popular Neighborhood and Rural Preservation Companies programs, but he also called for expanded funding of the State Low-Income Housing Tax Credit program and the Rural Rental Assistance Program. All other Capital programs remained funded at last year's levels. The affordable housing program highlights are below.
Local Assistance Funding for Affordable Housing:
The Executive Budget would eliminate funding for community based nonprofit organizations under the popular Neighborhood Preservation Companies program (NPCs) and Rural Preservation Companies program (RPCs). According to the plan, NPCs would lose $8.479 million and RPCs would lose $3.539 million "in order to preserve resources for other critical housing initiatives". Last year the Governor proposed budget language that would have combined the two programs into one and significantly change their funding criteria, but the legislature rejected those changes and the final enacted 2011-12 budget increased funding above what the Governor had proposed.
Capital Budget for Affordable Housing:
The Governor's proposed budget calls for the expansion of the Low Income Housing Tax Credit Program. The Commissioner of the Division of Housing and Community Renewal would be authorized to allocate an additional $8 million annually in each of the next five years in aggregate credit awards to taxpayers who develop qualifying housing projects for low-income New Yorkers. Credits are given in equal installments for a ten-year period. The total amount of credits that would be awarded from this new authorization would be $400 million over a multiyear period. The Governor projects this will increase low income housing opportunities by 600 units annually.
NOTE: Last year's Executive Budget had called for $12.8 million in funding for the Public Housing Modernization program - the same as the prior year. The program provides capital funding for rehabilitation of state public housing units. Under the final budget, half or $6.4 million was repurposed to other state housing programs. These funds would have gone to the New York City Housing Authority (NYCHA), but the City's 20,000 state public housing units were federalized last year and are now eligible for federal capital funds. Last year, in place, the Housing Trust Fund received an additional $3.2 million, the New York Main Street program received $2.2 million and the Access to Home program received $1 million. The Executive Budget for next fiscal year maintains this same funding arrangement.
News Alert: January 17
Construction Starts on Mt. Vernon Affordable Senior Housing Units
Ground was broken on the 4-building, 61-unit senior affordable housing development in Mt. Vernon on The Wartburg Adult Care Community campus. The project, named the Friedrichs Residence, will be the 23rd project built upon the campus.
Ryan Herchenroether, The Wartburg's Director of Planning, states that “The Friedrichs Residence will be the first pairing of HEAL grant funds with HFA financing in an affordable housing building. We are grateful for the project team and our financial partners, Enterprise, Bank of America and NYS Housing Financing Agency, for going where others have not gone before.”
The late Juanita E. and Arthur M. Friedrichs of New Canaan, CT, donated the $1,000,000 bequest that served as the project’s initial funding.
Click here for the full article.
News Alert: January 10
Rafael Cestero Named New President of CPC
The Community Preservation Corporation has named Rafael Cestero as its new president. Cestero, former Commissioner of the New York City Housing Preservation and Development, will serve as President and CEO, succeeding Michael Lappin who announced his retirement in November. He most recently served as Managing Director at L+M Development.
News Alert: January 10
HUD to Grant $110 Milion in Community Revitalization Funds
The Department of Housing and Urban Development announced that it is now accepting applications for $110 million in community investment grants as part of its FY 2012 Choice Neighborhoods Implementation Program.
The first-year allocations for this program last August totalled $122 million and was awarded to projects in Boston, Chicago, New Orleans, San Francisco and Seattle.
Choice Neighborhoods focuses on three core objectives:
• Housing: Transform distressed public and assisted housing into energy efficient, mixed-income housing that is physically and financially viable over the long-term;
• People: Support positive outcomes for families who live in the target development(s) and the surrounding neighborhood, particularly outcomes related to residents‟health, safety, employment, mobility, and education; and
• Neighborhood: Transform neighborhoods of poverty into viable, mixed-income neighborhoods with access to well-functioning services, high quality public schools and education programs, high quality early learning programs and services, public assets, public transportation, and improved access to jobs.
Click here for the full press release.
News Alert: January 10
Westchester County Executive: You Don't Get Much More Diverse that Here
Westerchester County Executive Robert Astorino submitted a letter to the New York Times defending Westchester County's record concerning racial integration and its response to the requirements of the legal settlement reached with HUD.
"To the Editor:
We take issue with your characterization of Westchester County’s affordable housing settlement in “Westchester’s Desegregation Battle” (editorial, Jan. 1). Far from being “ultrawhite,” Westchester is proud to be the fourth most diverse county in New York. It is virtually tied with Manhattan, in terms of percentage of Hispanic and African-American population, according to the 2010 Census. If Westchester were a state, it would rank seventh in Hispanic population and 14th in African-American population.
If there has been any “stonewalling,” it has been by the Department of Housing and Urban Development, which has held up $7 million in housing and community development grants, hoping to force the county to do things not required in the settlement.
Despite HUD’s roadblocks, Westchester is a year ahead of schedule in building the 750 units of affordable housing required by the settlement. Our success is attributable to working cooperatively with municipalities.
HUD would prefer litigation. That’s not how communities get built.
ROBERT P. ASTORINO
Westchester County Executive
White Plains, Jan. 9, 2012"
News Alert: January 8
NYSERDA Announces Increased Funding for Low-Income Household Energy Investments
The New York State Energy Research and Development Agency (NYSERDA) will now be offering $46 million to low-income households to aid in energy efficiency upgrades through its EmPower New York program. This represents an $18 million increase.
The funds are available to households earning 60 percent or less of the statewide median income. The program subsidizes investments by such households to reduce their energy usage by way of the installation of "high-efficiency lighting, replacement of inefficient refrigerators and freezers with new Energy-Star-qualified models, heating system upgrades, insulation and air sealing, as well as health and safety testing to ensure the home is properly ventilated and gases are not escaping into the living space."
Click here for the full press release.
News Alert: January 5
Court Blocks City Housing Plan for Bed-Stuy/Williamsburg
Patch.com reports that State Supreme Court Justice Emily Goodman has granted an injunction against a planned affordable housing for the Bed-Stuy/Williamsburg area in Brooklyn. The proposed project would have given priority to residents of a certain area of Williamsburg leading opponents to question whether the project would address the racial segregation in the Bed-Stuy neighborhood. Beddofrd-Stuyvesant is 77 percent black while the proposed development was estimated to be only 3 percent black.
Click here for the full article.
News Alert: January 5
Suffolk County Executive Stresses Affordable Housing
In his inaugural speech, Suffolk County Executive Steven Bellone emphasized his planned emphasis on affordable housing. Outlining his growth agenda, County Executive Bellone expressed "the need to streamline the permitting process and build affordable housing" in order to "effectively address the issues inhibiting growth" on Long Island.
Click here for the full press release.
News Alert: January 4
Governor Announces Housing Initiatives in State of the State Address
During today's State of the State Address, Governor Cuomo announced the formation of a tenant protection division within the NYS Homes & Community Renewal agency. It will be charged with fighting fraudulent schemes to have rent-protected housing deregulated, preventing price gouging and prosecuting landlords who fail to provide heat and hot water. The tenant protection initiative will combine technological tools with improved outreach to help to preserve the supply of affordable housing in New York State.
The Governor also announced the Olmstead Implementation Plan in response to the Supreme Court's ruling in Olmstead v. L.C. that "people with disabilities have a right to receive care in the most integrated setting appropriate to their needs." The Plan will be designed to "guide the transition of individuals from institutional to community-based care, provide access to affordable and accessible housing, and promote employment of persons with disabilities."
Click here for the full text of the Governor's speech.
News Alert: January 3
Rental Policy Group Releases Recommendations
Novogradac & Company reports that the Rental Policy Working Group has a set of recommendations to streamline federal affordable rental housing programs. Recommendations of the Federal Rental Alignment Administrative Proposals report include "aligning physical inspection, income reporting, financial reporting, energy efficiency requirements, appraisals, market study standards, subsidy layering, capital needs assessments, date sharing on owner defaults and fair housing compliance enforcement."
