ALBANY, N.Y. - Governor David A. Paterson announced the award of $45 million in affordable housing grants through the American Recovery and Reinvestment Act (ARRA).

The funds will jumpstart nine developments stalled by the economic downturn, helping to build or rehabilitate 1,119 units of affordable housing for the elderly, individuals with disabilities, and low-income families and individuals. The Governor made the announcement at El Camino Estates in Rochester, one of three affordable housing projects in Monroe County that will receive stimulus grants.

“With these affordable housing grants, we save desperately needed development endangered by the economic downturn. We will create new homes for our most-vulnerable New Yorkers, while also generating more than $175 million in direct economic activity and attracting more than $48 million in additional equity,” Governor Paterson said. “These investments are critical for the residents who will call the housing units home and for the local economies that will benefit from the start of construction.”

The grants announced today are part of $253 million in federal Tax Credit Assistance Program (TCAP) funds available through the ARRA. The awards are allocated to the New York State Division of Housing and Community Renewal (DHCR) and used to fill financing gaps created by the devaluation of Low Income Housing Tax Credits. Before the financial downturn, the tax credits were one of the most reliable sources of equity for affordable housing projects.

The grant recipients were awarded tax credits in 2007 and 2008. However, the meltdown of the housing and financial markets caused the tax credits to lose 25 percent or more of their value, creating funding gaps for many affordable housing projects that relied on the credits. The TCAP funds will allow construction on the projects, which are expected to begin within 45 days.

Congresswoman Louise Slaughter said: “I have continued to support funding for El Camino and am pleased the federal stimulus package, with the help of Governor Paterson, will provide funds for this critical housing project here in Rochester. Affordable housing for 25 low income families and individuals will do a lot to help stabilize our community and assist the working poor.”

Commissioner of the New York State Division of Housing and Community Renewal Deborah VanAmerongen said: “New York has taken the lead in addressing the economic crisis’s impact on the creation of affordable housing. We have been working with developers since early last year to fill funding gaps created by the downturn, and Governor Paterson effectively lobbied Congress and the President’s office to include funding for affordable housing in the economic recovery package.”

Assemblyman David Gantt said: “These grants will give a much needed boost to the Rochester economy by creating jobs and by giving many who do not have access to adequate affordable housing a chance to rebuild their lives. These investments come at a time when hardworking New Yorkers need them the most and provide a positive outlook for the future.”

Mayor Robert J. Duffy said: “This is an important investment in our community – one that ensures that our residents most in need are well provided for through safe, affordable and top-quality housing. I’d like to thank Governor Paterson for his commitment to Rochester once again through the designation of these crucial funds.”

The projects to receive TCAP funds are located in urban, suburban and rural New York and include:

*$3.3 million for El Camino Estates in the City of Rochester to provide 25 units of affordable housing for very low-income individuals with developmental disabilities. The City of Rochester also contributed $435,000 in HOME federal funding and is providing a PILOT (payment in lieu of tax) agreement for the property;

*$1.96 million for Lafayette Manor in Staten Island to provide 60 units of housing for very low-income elderly and frail elderly;

*$3.7 million for Clifton Park Senior Apartments in Saratoga County to build 70 units of affordable housing for low- and very low-income elderly and frail elderly; and

*$2 million for Unadilla Senior Housing in Otsego County to provide 24 units of affordable housing for very low income elderly.

DHCR has also sub-allocated TCAP funds to the State’s Housing Finance Agency (HFA), which recently approved a total of $34.7 million for the building and renovation of 940 affordable housing units. Those projects include:

774 West Main Street Apartments in Rochester, which will receive HFA financing for the renovation of a vacant building and construction of a new apartment building. The project will create 113 units, including 89 studios that will be rented to tenants with psychiatric disabilities;

*Stonewood Village in Henrietta in Monroe County will receive HFA financing, making major capital improvements to the 188-unit low-rise project;

*Farmington Senior Apartments in Farmington in Ontario County will receive HFA financing for the construction of an 88-unit garden apartment-style development. The project will equip 17 units to meet the needs of tenants with physical disabilities or with audio or visual impairments;

*Madison Plaza Apartments in Rome in Oneida County will receive HFA financing, making major capital improvements to the 127-unit Mitchell Lama project;

*Selfhelp Kissena I and II in Queens will receive HFA financing, making major capital improvements in the two Mitchell Lama projects, which have 424 units reserved for seniors.

These awards are the latest in a series of affordable housing grants that the Governor has announced, including last month’s allocation of $30 million for projects across the State. Thus far, the total stimulus investment in affordable housing has reached $75 million, helping to rehabilitate or create 1,669 units across the State.

Both DHCR and HFA adhere to ARRA Policy Goals outlined by Governor Paterson, which include, fostering energy independence by ensuring that all projects recommended will meet heightened energy-efficiency standards; providing equal opportunity for Minority and Women Owned Business Enterprises (MWBE) by applying MWBE utilization goals to all projects recommended for TCAP funding and encouraging sound labor practices by requiring, consistent with the requirements of ARRA, that all projects utilize Davis-Bacon wage and fringe rates approved by the U.S. Department of Labor.