NEW YORK CITY—The Community Preservation Corp., a provider of capital for affordable housing in underserved housing markets has announced that the New York State Common Retirement Fund has committed $200 million in new funding to invest in affordable housing and community revitalization projects across New York State.
This new allocation will finance approximately 3,500 units of housing over the next three years, and will serve to revitalize downtown areas, stabilize neighborhoods, and provide much-needed affordable housing throughout New York State.
Explains CPC's Sadie McKeown, EVP and COO, to GlobeSt.com, “When people hear about affordable housing and community revitalization, they think of HUD, tax incentives and other federal programs. We do use those but we also use this program for distressed Downtown areas like Syracuse and New Rochelle that can use the funding to build more housing that will bring in retail, entertainment and other amenities.”
She continues, “This funding gives developers the certainty to come into those markets. We're the jump start capital to create development in these neighborhoods, where what's considered affordable housing is actually market rate.”
Previously used with other rounds of funding, the CPC's program works to stabilize neighborhoods and revitalize communities in towns such as Poughkeepsie and Rochester. It also has created housing for low- and moderate-income families and populations with special needs, such as homeless families, individuals with mental illness, and seniors.
Among the projects that will be helped by CRF's latest commitment is 641 Main St., in Poughkeepsie.The funding will enable CPC—which usually provides short-term loans—to close soon on a $460,000 first mortgage permanent CRF loan with SONYMA insurance. The loan will help developer Wulf Lueckerath to rehabilitate a building in disrepair into eight affordable apartments and two commercial spaces.
Over in Rochester, the CRF financing will allow the CPC—which provides short-term loans until another organization steps up with long-term financing—to grant a $2.7 million construction and CRF permanent loan to developer Doug Sutherland. His plan is to convert the vacant and historic 42 & 48 S. Washington St. into a four-story, mixed-use building comprised of 15 market rate, loft-style apartments and 5,000 square feet of office space.
The investment in and creation of an attractive housing stock has been critical to historic downtown revitalization in upstate New York, especially for creating density and supporting convenience, says the CPC.
“As Comptroller, one of my responsibilities is to ensure that the New York State Common Retirement Fund is diversified and strong,” said New York State Comptroller Thomas P. DiNapoli. “The partnership with the Community Preservation Corp. increases affordable housing options across the state, provides risk-adjusted returns, and helps ensure that the Fund remains one of the best-funded in the country.”
Since 1991, CPC has worked in partnership with CRF to provide 30-year fixed-rate permanent loans for low- and moderate-income multi-family developments. To date, CPC has invested approximately $650 million to create over 16,300 units of housing in partnership with CRF.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
