Loan Secured for Supportive Housing Rehab in NY’s Dutchess County
LaGrange, N.Y.—The renovation of 116 units of supportive housing at Hudson River Lodging has been made possible through a $2.4 million permanent loan. The loan was secured by Community Preservation Corporation (CPC), a not-for-profit lender that finances residential multifamily development in New York State.
CPC’s loan is a first mortgage New York State Pension Fund permanent loan. The Pension Fund loan will be a 15-year fixed-rate loan with 100 percent State of New York Mortgage Agency (SONYMA) insurance.
The loan is a refinance of an existing mortgage, and $250,000 of the total $2.4 million will be spent on capital reinvestment in the property.
Hudson River Lodging consists of two components. The first is a 100-unit single-room occupancy building that was once a motel with adjacent restaurant. Since 2005, it has served as the primary emergency homeless and transitional housing facility for Dutchess County.
The building, Gannett House, is sponsored by the Dutchess County Department of Social Services, New York State Office of Temporary and Disability Assistance and the New York State Department of Health. Families and individuals living temporarily at Gannett House are provided with meals, transportation, 24-hour security and other needed assistance.
Once temporary residents’ immediate needs have been addressed, case managers help them transition to permanent housing.
The second Hudson River Lodging component is a row house-like 16-unit townhouse block, which serves as permanent residences.
“The refinancing allows us to finance improvement to Hudson River Lodging, but yet reduce our debt service,” Ed Murphy, executive director of Hudson River Housing, Hudson River Lodging‘s operator, tells MHN.
Hudson River Housing is an affordable housing provider in the mid-Hudson Valley, whose roles include everything from operating homeless shelters for adults and youth to building homes for first-time buyers, Murphy says.
At Hudson River Lodging, the renovation will include installation of emergency power, something that appears increasingly necessary in the wake of Hurricane Sandy and the major blizzard, also known as Winter Storm Nemo, of Feb. 8-9.
In addition, Murphy says, “We were able to do some environmental remediation, removing unused underground storage tanks and replacing them with above-ground storage tanks for heating oil for our heating system. We’re installing energy improvements such as LED lighting and window replacements and doing some cosmetic upgrades to rooms.”
The renovation will help Hudson River Housing continue to meet a Dutchess County need for decent housing at low cost, he adds.
“There are many families in Dutchess who need emergency or transitional housing at very low cost. Now that these transitional housing units are being upgraded, the units are very decent places to live.”Tags: affordable housing, Financing, renovation