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NYS Housing Agency helps finance rehab of two Rockland senior housing projects

Two senior citizen housing projects in Rockland County will undergo major renovations as a result of the sale of two separate $6.7 million bond issues today by the New York State Housing Finance Agency (HFA). The bond sales will finance improvements at the 100-unit West Haverstraw Senior Citizens Apartments in West Haverstraw and the 97-unit Warren Knolls Apartments in Haverstraw. In return, the owners agree to keep rents affordable for 40 years after completion of the repairs.

"These projects are part of the Spitzer administration's effort to preserve affordable housing throughout the State," said Priscilla Almodovar, HFA President and Chief Executive Officer. "We are very proud to keep these developments affordable into the future and also help improve the services residents receive."

Mark Carbone, President of Related Affordable, said, "Related Companies is pleased to partner with the New York State Housing Finance Agency to upgrade and ensure the long-term preservation of affordability of these two developments in an area of New York State that is in critical need of affordable units. These two projects are indicative of Related's long standing commitment to quality affordable housing. Since 1972, Related has developed, acquired or financed over 300,000 units of affordable housing."

For both projects, the financing will pay for improvements such as upgrades of kitchens and bathrooms, replacing boiler controls, window replacement, new intercoms and laundry room upgrades. Residents will not be displaced during the renovations. Both projects are reserved for seniors aged 62 years or older and disabled persons at or below 60% of the Area Median Income (AMI) for Rockland County, where the AMI is $96,100.

The West Haverstraw Senior Citizens Apartments, located at Route 9W and Cosgrove Avenue in West Haverstraw, consists of 100 one-bedroom apartments in eight two-story garden-style apartment buildings. The borrower is West Haverstraw Preservation, LP, an entity controlled by The Related Companies, Inc. The total cost of the rehabilitation is $11.13 million. In addition to $6.7 million in HFA bond financing, West Haverstraw will receive an annual allocation of $376,000 in federal Low Income Housing Tax Credits. The project is also expected to benefit from a Payment In Lieu of Taxes agreement with the Village of West Haverstraw, which will provide property tax abatement, and a Section 8 Project Subsidy from the U.S. Department of Housing and Urban Development.

The Warren Knolls Apartments, located at 500 Warren Knolls Drive near Route 9W in the Village and Town of Haverstraw, consists of 97 units in five two-story garden-style apartment buildings. The borrower is Gurnee Housing Preservation, LP, an entity controlled by The Related Companies, Inc. The total cost of the Warren Knolls rehabilitation is $11.1. In addition to $6.7 million in HFA bond financing, the development will receive an annual allocation of $372,000 in federal Low Income Housing Tax Credits.

The project is also expected to benefit from a Payment In Lieu of Taxes agreement with the Village and Town of Haverstraw, which will provide property tax abatement, and a Section 8 Project Subsidy from the U.S. Department of Housing and Urban Development. For both bond issues, the underwriter was UBS Investment Bank and the bond counsel was Hiscock and Barclay LLP. HFA was created as a public benefit corporation in 1960 to finance low-income housing by raising funds through the issuance of housing revenue bonds and by making mortgage loans to eligible borrowers.

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