New York Governor David A. Paterson announced early this week $253 million in affordable housing grants coming to New York through the American Recovery and Reinvestment Act (ARRA). The New York project 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 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, many of which are geared towards low income, senior housing projects. 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. The Governor made the announcement 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 and the Governor was joined by Congressman Charlie Rangel. 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 the value of the tax credits and created funding gaps to stall 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.
"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."
Congressman 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."
For more information on the grants and the projects that are affected by the grants, click here.