|HUD No. 07-19
April 16, 2007
HUD ANNOUNCES REDEVELOPMENT OF HENRY HUDSON TOWNHOUSES INTO
A NEW AFFORDABLE HOUSING COMPLEX
NEW YORK - Housing and Urban Development Secretary Alphonso Jackson today announced that he has come to an agreement with the City of Glens Falls and the proposed new owner, Evergreen Partners, to preserve Henry Hudson Townhouses as affordable housing and redevelop the 135-unit complex.
"Our Department has no greater mission than preserving affordable housing and strengthening communities," said Secretary Jackson. "That is why I am so pleased that our efforts today will help to both redevelop and preserve
Henry Hudson Townhouses as an important affordable housing resource for the citizens of Glens Falls."
The once gleaming complex built in the early 1970s and located between Hudson Avenue and Broad Street has deteriorated badly over time, making it unsafe for residents and hurting the city's economy. Yet it remains a critical housing resource to the City, and is also a key element of the City's strategy to revitalize the downtown area. To assist the City redevelop the area, as well uphold its legal responsibility to protect the tenants benefiting from
federal rental assistance, HUD has worked closely with Mayor Roy Akins, the developers, and Evergreen Partners to create a redevelopment plan that addresses the need for high quality affordable housing as well as promoting the city's commercial and economic interests.
The plan submitted by Evergreen and just approved by HUD will tear down and redevelop all 135 existing rental
units, preserve the Section 8 rental subsidy, and create a new mortgage for the owner. Additionally, both the New York State Housing Finance Agency and the New York State Division of Housing and Community Renewal played a critical role in the drafting of the redevelopment plan.
The renovation of Henry Hudson Townhouses will cost almost $19 million financed, in part, by Bank of America, and insured by the State of New York Mortgage Agency (SONYMA). In addition, the New York State Housing Finance Agency (NYSHFA) will provide the owner a low-interest loan of $1,650,000 through its Empire Housing Fund Program. Further the New York State Division of Housing and Community Renewal (DHCR) will provide an additional low-
interest loan of $2,195,000. Tax credits will also be used to fund the complex.
The current HUD insured Section 236 mortgage, which provided the original owner a low interest rate to build the complex and allow for affordable rents, will be prepaid in full. However, the new mortgage will still allow the new
owner to continue with the present affordable rent levels. Additionally, the new owner will assume the Section 8 contract and has committed to maintain the property as a low-income housing resource for the next 20 years.
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities;
creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.