March 10, 2021-- New York State Homes and Community Renewal, The Community Preservation Corporation, a leading nonprofit multifamily finance company, and Albany Clinton Redevelopment LLC announced construction is underway on a $5.3 million new affordable housing project in Albany to rehabilitate nine small buildings, consisting of 40 residential units, and two vacant lots in the vicinity of the historic Clinton Avenue corridor. The development is moving forward with financing from HCR’s Small Building Participation Loan Program, which supports the preservation and improvement of affordable rental housing in buildings of five-to-40 apartments.
HCR Commissioner RuthAnne Visnauskas said, “HCR is committed to utilizing all the tools at our disposal to advance Governor Cuomo’s $20 billion affordable housing plan. I am proud that HCR’s Small Building Participation Loan Program is playing a pivotal role in restoring nine buildings to create 40 newly renovated apartments in Albany’s Clinton Avenue historic district and Arbor Hill neighborhood. These types of investment breathe new life into communities across the state. We look forward to working with CPC and to see the results of this development as we strive to enhance quality of life and keep people safely housed.”
Michael Skrebutenas, Senior Vice President and Regional Director at CPC said, “Revitalizing Upstate communities starts with small building projects just like this one. At CPC, we work with our borrowers and government partners to help solve the unique development and financing needs our communities are facing today. My thanks to Patrick Chiou and the team at Albany Clinton Redevelopment for their vision and dedication, and to our partners at HCR for their commitment to making New York more equitable and affordable.”
Patrick Chiou, Principal of Albany Clinton Redevelopment said, “This project has been a long time coming. We will be bringing a high-quality apartment at affordable rates which is what this area needs. Everyone deserves to live in something nice no matter what neighborhood you are living in.”
Albany’s Clinton Avenue is home to numerous grand rowhouses and cultural amenities, but its historic housing stock has suffered from neglect over the years. Today’s announcement complements the city’s strategic plan to revitalize Clinton Avenue and the Arbor Hill neighborhood, transforming vacant structures, injecting new energy into the neighborhood, and improving housing options.
The properties were acquired beginning in 2016 from the Albany County Land Bank and private sellers. Eight of the buildings have been vacant for several years. The project will also include 521 and 535 Clinton Avenue, which are vacant lots and will be used as off-street parking. When complete, all the apartments will have rents at or below 80 percent of the area median income pursuant to the Participation Loan Program guidelines. Two of the buildings are near 800 Broadway, which is a 15-apartment project consisting of four historic buildings redeveloped by Mr. Chiou and financed by CPC in 2018.
HCR is providing $2 million in Small Building Participation Loan Program funds. This financing builds on other HCR investments that are supporting Albany’s strategic plan to improve housing and quality of life on and around the historic Clinton Avenue corridor, including the redevelopment of Ida Yarbrough Homes, Sheridan Hollow Village, Academy Lofts, and the rehabilitation of additional rowhouses on Clinton Ave. CPC is providing a $2.7 million construction loan and proposing to refinance with a SONYMA-insured permanent loan through their partnership with the New York State Common Retirement Fund. The project will also be applying for a municipal tax abatement and federal and state historic tax credits.
New York State Comptroller Thomas P. DiNapoli, trustee of the New York State Common Retirement Fund said, "By investing in these small building apartments, we not only ensure a solid return for our members but also benefit Albany and Upstate New York. We are proud that the pension fund can play a role in revitalizing New York's communities and bringing affordable housing to those who need it."
Senator Neil D. Breslin said, "I applaud NYS Homes and Community Renewal, The Community Preservation Corporation and Albany Clinton Redevelopment LLC for commencing a $5.3 million rehabilitation project on Clinton Avenue. Investing in housing will enhance the Arbor Hill Neighborhood and most importantly, improve the quality of life of those who live there."
Assemblyman John T. McDonald III said, "I am excited to see this rehabilitation project happening in the 108th Assembly District. Unfortunately, affordable rentals are disappearing quickly in many places. Affordable rental housing is key to a sustainable workforce for a region and plays an important role in our economy. Thank you to NYSHCR, the Community Preservation Corporation and Albany Clinton Redevelopment for their work on this. I look forward to seeing the completion of this project."
County Executive Daniel P. McCoy said, “The revitalization of downtown Albany is underway in spite of the pandemic, but if that progress is going to continue, we need to make sure we’re attracting residents from a diverse set of means to support local businesses. Investing in affordable housing is a great way to get us there, and I commend the State HCR and community partners for this important investment in the underserved communities of the Clinton Avenue historic district and Arbor Hill. Albany County has invested $3 million in the County Land Bank over the years, and this project is another example of how it’s playing a role in improving our housing stock and our neighborhoods.”
Mayor Kathy Sheehan said, "This rehabilitation project is getting underway at a perfect time to complement the Downtown Revitalization Initiative funded projects that will rejuvenate a large portion of the Clinton Square and Arbor Hill neighborhoods. Restoring the facades of these rowhouses to their historic beauty coupled with providing modern amenities and off-street parking to mixed income tenants will continue the revitalization underway in these neighborhoods and offer diverse housing options in the area."
About HCR’s Small Building Participation Loan Program
HCR’s Small Building Participation Loan Program provides the financing, terms and technical assistance that owners and operators need to be successful. Buildings must be between five and 40 units and located outside of New York City. In exchange for keeping the apartments income-restricted to an average of no more than 80 percent of AMI, HCR will provide gap financing assistance for qualified developers for acquisition, capital costs and related soft costs associated with the preservation and improvement of small rental properties. Subsidy from HCR is combined with financing from a participating private institutional lender, such as CPC, resulting in a lower blended financing cost.
About The Community Preservation Corporation
Established in 1974, CPC is a nonprofit affordable housing and community revitalization finance company that believes housing is central to transforming underserved neighborhoods into thriving and vibrant communities. The company, which currently carries a AA-issuer rating from S&P Global, provides a full suite of capital products through its construction lending, Agency lending, and equity investing platforms. Since its inception, CPC has provided more than $11.5 billion to finance nearly 200,000 units of housing and is currently one of the largest Community Development Financial Institutions in the country dedicated to investing in multifamily housing.