The New York City Department of Housing Preservation and Development (HPD) has awarded a total of $12.4 million in federal Low Income Housing Tax Credits for 74 developments under the competitive funding round for 2005. These credits will produce 1,397 apartments -- of which 1,093 will be for low-income families -- across the five boroughs. This represents an increase from 2004 when $10.1 million was awarded, to produce over 1,000 low-income rental apartments. The units will contribute to Mayor Bloomberg's $3 billion New Housing Marketplace plan to fund the construction and rehabilitation of 68,000 apartments and homes by 2008.
HPD Commissioner Shaun Donovan said, "I would like to thank the State of New York for giving credit authority to HPD to award Low Income Housing Tax Credits in New York City. These tax credits generate thousands of units of affordable housing for low-income families, one central purpose of the Mayor's New Housing Marketplace plan.
To be eligible for the Low Income Housing Tax Credits, developments must consist of substantial rehabilitation or new construction, with at least 20% of apartments reserved for low-income households. During annual funding rounds, developers apply competitively to HPD for allocations of tax credits, which are awarded based on selection criteria specified in the City's Qualified Allocation Plan.
As part of the 2005 funding round, HPD established a special set-aside of $1.5 million for mixed-income new construction developments. Three developments received awards under the set-aside. Low-income and formerly homeless families will be included among a range of incomes within the buildings.
Rehabilitated buildings funded through the tax credits will provide quality and affordable housing for new and existing tenants. For example, Iyana Houses in Brownsville, Brooklyn, consists of five buildings that are being rehabilitated to create 36 units using Low Income Housing Tax Credits, in addition to HPD capital funds and federal HOME funds. The completed buildings will house residents with a mix of incomes, including existing tenants able to return to rehabilitated apartments in a newly energy-efficient building.
The tax credits will help create housing for the lowest income New Yorkers, contributing to Mayor Bloomberg's plan to end chronic homelessness, Uniting for Solutions Beyond Shelter. For example, CAMBA Housing Ventures, Inc., a non-profit affordable housing development company and subsidiary of Church Avenue Merchants Block Association (CAMBA), is developing a 45-unit apartment building in central Brooklyn to provide permanent supportive housing for low-income and formerly homeless individuals. 27 studio apartments will be reserved for formerly homeless tenants and 18 studios will be available for individuals earning up to $26,400. This new community asset will be built on a vacant, city-owned lot at 1247 Flatbush Avenue, offering quality affordable housing for area residents with on-site social services. In addition to the LIHTC allocation, financing for the project will be provided through HPD's Supportive Housing Loan Program, federal funds and City capital.
Since 1988, HPD has allocated nearly $156 million in competitive credits, generating nearly $1 billion in private equity contributions. This has created more than 26,000 units of quality affordable housing. In the past 12 years, HPD has also processed applications for $52 million in "as-of-right" credits for 108 tax-exempt bond financed projects, creating another 7,000 affordable housing units.
A full list of the awardees and locations of the housing is available at www.nyc.gov/hpd (.PDF)
HPD's mission is to promote quality housing and viable neighborhoods for New Yorkers. The department is the nation's largest municipal housing development agency. Since Fiscal Year 1987, the agency has completed the construction or rehabilitation of over 229,000 units of affordable housing. To request a Homeownership Kit or for information about affordable rental housing, call 311 or log on to www.nyc.gov/hpd