$15.7 Million Project Will Create 136 New Housing Units
NEW YORK, N.Y.-July 17, 2007- The New York State Housing Finance Agency (HFA) today closed on $15.7 million in financing to rebuild the Henry Hudson Apartments in Glens Falls, N.Y.
The project involves demolishing and then completely rebuilding 136 affordable units in the development in downtown Glens Falls, which will be renamed Village Green Apartments. The project will be completed in phases to minimize displacement of the apartment residents.
"I am very proud that HFA was able arrange the financing to rebuild this apartment complex in such a central location in Glens Falls," said Priscilla Almodovar, President and Chief Executive Officer of HFA. "HFA is dedicated to creating and restoring affordable housing in New York State and this project is a wonderful example of how we can better people's lives by building new affordable housing."
Deborah VanAmerongen, Commissioner of the Division of Housing and Community Renewal, said, "New York's affordable housing is critically important for thousands of senior citizens and low- and moderate-income families. The awards we are announcing today reflect Governor Spitzer's commitment to preserve and enhance affordable housing throughout our State."
The developer is Henry Hudson Housing Associates, LLC, which consists of Evergreen Partners and Marathon Development Group Ltd.
"We worked hard with the city of Glens Falls to tailor this redevelopment to meet the needs of the residents of the project and the surrounding community," said Charlie Allen, Partner of Evergreen Partners.
"This comprehensive redevelopment was made possible only with the tremendous support of the state Housing Finance Agency and the state Division of Housing and Community Renewal, and the continued participation of federal Department of Housing and Urban Development," said Mark Soja, President of Marathon Development Group Ltd.
Village Green Apartments will be rented to households with incomes at or below 60% of the Area Median Income (AMI) for the Warren County region, where the AMI is $53,700.
The project is being financed by HFA's Taxable Mortgage Initiative (TMI), in which HFA originates the mortgage and then assigns it to a private lender at the closing. The lender for Village Green Apartments is JP Morgan Chase. Upon completion of construction, Chase will sell its mortgage to the New York State Common Retirement System.
Financing for the development includes a $3.8 million TMI mortgage, a $7.9 million subordinate financing construction loan from Chase, a $1.8 million HFA subsidy loan and a $2.2 million loan from the New York State Housing Trust Fund, which is administered by the NYS Division of Housing and Community Renewal.
The Henry Hudson Apartments were built in 1971 and 1972 using Section 236 Interest Rate Reduction Payment financing from the U.S. Department of Housing and Urban Development. Under this program, affordable rental units are developed with low-interest mortgage loans and property tax exemptions in exchange for limits on developer profit and tenant income limits.
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The NYS Housing Finance Agency was created in 1960 to sell bonds to finance the construction and rehabilitation of multi-family affordable rental housing in New York State.
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Tiffany Berns
AVP for Press Relations
NYS Housing Finance Agency/SONYMA
Tel. 212-688-4000 ext. 681
Fax. 212-872-0681
