Several Brooklyn apartment complexes with affordable housing units have received financing from the boards of the state’s Housing Finance Agency (HFA) and Affordable Housing Corp. (AHC), it was announced last week.
They were among several projects citywide the two agencies approved funding for — for a total of $719 million — to create and preserve 1,802 units of affordable housing.
Included among the projects are the first multifamily 80/20 rental projects to be approved under the HFA’s new 2008 allocation criteria for private activity tax-exempt bond financing, also known as “volume cap.”
These developments have agreed to set aside 20 percent of the units for low-income tenants and also satisfy other criteria.
The HFA revised its 80/20 volume cap criteria in January because demand for tax-exempt bonds greatly exceeds the amount of volume cap authority available to the state under federal law. The bonding authority approved today will be spread over the next three years as the developments are built.
HFA also approved financing for major renovations at two Mitchell Lama projects in the city under the Mitchell Lama Rehabilitation and Preservation (RAP) program. Under this program, owners receive renovation financing and agree to keep rents affordable for the next 40 years.
The two HFA-approved financings in Brooklyn are:
• 80 DeKalb Avenue, an 80/20 project of Forest City Ratner Companies in Fort Greene, will receive $137 million in financing for a 34-story building with 365 units, 73 of which will be reserved for low-income tenants.
• Shore Hill Apartments, a 558-unit Mitchell Lama in Bay Ridge, will receive $41 million in financing for major capital improvements. The project will receive an annual allocation of $2.4 million in Federal Low Income Housing Tax Credits, project-based Section 8 subsidies and a property tax abatement from the city. The project will remain in the Mitchell Lama program, and rents for all apartments will remain affordable. The tenants will not need to relocate from their apartments during the renovations.
“The financings we approved demonstrate the great diversity of housing in New York City,” said Priscilla Almodovar, president and CEO of AHC and HFA. “Whether it’s financing market rate housing in Manhattan, providing for affordable co-ops in Brooklyn or preserving Mitchell Lama projects in Queens, 'nyhomes' is supporting the wide variety of housing needs demanded by the city’s residents.”
AHC-Approved Financing For Brooklyn Developments
The AHC approved the following grants to the Housing Partnership Dev. Corp. in Brooklyn:
• Greenpoint — $485,000 to finance the renovation of a former police precinct building into a three-story co-op with 14 units at 43 Herbert St. Additional financing will come from the HPD and the borough president.
• Coney Island — $425,000 to finance construction of 14 co-ops on several sites on Mermaid Avenue and West 16th Street.
• Ocean Hill/Brownsville — $425,000 to finance the construction of seven two-family homes.
• Bedford-Stuyvesant — $540,000 to finance construction of six three-family homes.
© Brooklyn Daily Eagle 2008
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