"Affordable rental housing is essential to New York's working families and this program will preserve and improve thousands of affordable homes for many years to come," Governor Pataki said, announcing the initiative Tuesday. "Since 1995, we have invested more than $6 billion in affordable housing, using a combination of State and federal resources. As a result, more than 125,000 low and middle-income families have secured affordable housing here in New York State."

According to HFA, the program fulfills a twofold need. Much of New York's housing stock is more than 25 years old and properties are in need of costly repairs and improvements. In addition, many of these properties are approaching the end of their obligation to provide affordable housing units. HFA will offer low-interest mortgage loans for the acquisition or refinancing and renovation of affordable housing, lowering the likelihood of their conversion into market rate apartments. The agency is committing $100 million in tax-exempt bonds and $40 million worth of tax credits to finance the program. To qualify, owners must agree to extend the affordability by 40 years from the time of the funding.

Eligible projects include any property in need of preservation, including those already in HFA's portfolio. Assets that were initially financed through federal and/or state affordable housing programs as well as those not currently part of an affordable housing program are eligible.