New N.Y. Affordable Housing Finance Initiative Kicks Off in Poughkeepsie
- Nov 21, 2013
Poughkeepsie, N.Y.—The first loan through a new initiative to preserve affordable multifamily housing has closed for a property in Poughkeepsie, N.Y. The initiative is under the auspices of the Positive Social Purpose (PSP) Lending Program, which is administered by Wespath, the investment division of the General Board of Pension and Health Benefits of the United Methodist Church. The Community Preservation Corp. (CPC), an affordable housing lender, provided the loan.
The loan is a $500,000 permanent mortgage for the acquisition and moderate rehabilitation of 17 South Hamilton St., a mixed-use building with 10 rentals and six retail spaces in a building built in 1925. Repairs and upgrades include a new roof for the apartments and roof repair for the commercial space, window replacements, plumbing and electric upgrades, and new toilets and bathroom repairs, among others.
Average rent for the property’s one-bedroom units is $625 per month and $800 for two-bedroom apartments, which are affordable to households at or below 50 percent of the area median income in Poughkeepsie. A shoe repair shop, two clothing stores, an artist, a tee-shirt printing shop and an art apparel design shop occupy the retail spaces. The building is near the Metro North Train Station.
The new CPC-PSP partnership aims to provide construction-to-permanent loans for multifamily properties in New York State. This partnership involves a commitment from the PSP Lending Program of up to 30-year fixed rate permanent loans. Four loans totaling $12.9 million have been approved thus far and are expected to close by the end of the year.
Poughkeepsie has been a designated target area for CPC investment for over 20 years. To date, CPC has financed a total of 54 projects with 947 apartments representing total financing of $48.6 million.