Posts Tagged ‘DHCR’

Esopus senior housing project up for award

Wednesday, August 25th, 2010

Published: Wednesday, August 25, 2010 ESOPUS — The Birches at Esopus is one of three developments financed by state of New York housing agencies* to be named finalists in Affordable Housing Finances’ sixth annual Reader’s Choice Awards.

The Birches at Esopus is the first affordable housing community for senior citizens in the town of Esopus and provides 80 energy-efficient apartments for low-income seniors. Units are accessible to people with disabilities, and the development includes outdoor and community space, craft and media rooms, an exercise studio and an on-site nursing program, which provides services like physical and speech therapy, health and wellness programs and health aides.

Nationwide, 33 projects were chosen from 140 nominations on the criteria of community impact, cost-effective or innovative design or construction, and energy-efficient and sustainable development.

The other New York finalists are the Atlantic Avenue Residence, a 107-unit development in Brooklyn; and the 24-unit Nelson Hopkins Apartments, the Elizabeth Pierce Olmsted Center for the Visually Impaired, in Lockport, near Buffalo.

The winners will be announced at the 2010 Affordable Housing Developer’s Summit in November in Chicago.           Photo and asterick information added for website.

* nyhomes and DHCR (Division of Housing & Community Renewal)

More than just a Ribbon Cutting

Friday, July 9th, 2010

A Commitment to Partnership: Birchez Associates Gets it Done

Ulster, New York: Success is often a quality that is measured subjectively.  What one person considers success may be quite the opposite for someone else.  But when it comes to the track record for Birchez Associates, one needs to look no further than the fact that there have been five ribbon cuttings on five communities within the past five years.  By anyone’s definition, that’s getting it done!

Pictured at left: Lynn Kopka, Division of Housing & Community Renewal; Joel Brink, Town of Ulster Councilman; Alfred A. DelliBovi, CEO Federal Home Loan Bank of New York; Congressman Maurice Hinchey; State Senator John J. Bonacic; Steven L. Aaron, Founder & Managing Member of Birchez Associates; Michael Colgrove (in background), New York State Energy Research & Development; Josh Aaron; Judy Aaron; Joseph Malcarne, LEED AP & President Malcarne Contracting; Bryan Smith, Rhinebeck Savings

“This is a tremendous example of what strong public/private partnership can get done in difficult economic times,” said Chris Herrmann, an underwriter for Enterprise Community Investment.  Enterprise helps facilitate the closing of affordable housing developments, like the recently opened Birches at Chambers, with investment of development capital and funding.  He, and others, spoke to the feat achieved by Birchez Associates at the official dedication of The Birches at Chambers on July 8, 2010.  “This project managed to build in the highest-end amenities, build in all the current green amenities, and get the project done even with the economic conditions of the past two years.”

“Keep in mind that this was done during one of the worst recessions we’ve seen in our lifetime,” said Judy Calogero, CEO of the New York Housing Conference and past commissioner of the New York State Department of Housing and Community Renewal, who was master of ceremonies at the community dedication.  Despite sour economic conditions during the latter part of the past decade, Birchez Associates was able to forge affiliations with not-for-profit and government agencies to bring its plans to fruition.

The path to success hasn’t been without obstacles, however: thanks to census issues, the $15 million project almost didn’t happen.  Just as The Birches at Chambers was about to begin, Ulster County lost its entitlement based on a snafu with census tract numbers and overnight tax credits lost a 30 percent boost. Then came the economic downturn and there was another 30 percent shortfall.  To make sure that the project could get back on track, Steve Aaron, the founder and managing member of Birchez Associates, stepped up by providing a multi-million dollar loan to bridge the funding gap, while deferring the maximum amount he could in developer’s fees.

In addition, the New York State Housing Finance (nyhomes) and Division of Housing and Community Renewal (DHCR) was able to provide approximately $6 million is low interest loans, while Enterprise Community Investment supplied $3.20 million.  The Federal Home Loan Bank of New York, through their local partnership with Rhinebeck Savings Bank, kicked in $1.32 million to help get the project finished.

When all was said and done, the building now offers 66-affordable apartments tosenior residents who pay, on average, $700 a month.  That low rent is yet another success achieved by Birchez Associates because of private/public partnerships.

“When the state at its level looks to invest in someone, they look at someone with a wonderful track record,” said State Senator John J. Bonacic.   “We could do a hundred more of these projects and fill them, and we will continually strive to get the tax credits to help our good partners like Steve — a premier affordable housing builder — do more and more of these projects.”

For a video on putting the financial pieces together, click here.

Brian Rubin for Birchez Associates, birchezassociates@gmail.com

Birchez Acclaimed for The Birches at Esopus

Monday, May 3rd, 2010

New York, NY: Governor David A. Paterson delivered remarks at the 11th Annual NYS Affordable Housing Conference (NYSAFAH) and NYS Housing Finance Agency’s 50th Anniversary Luncheon in New York City. The Governor highlighted key statistics of the current economic environment to illustrate the critical need for affordable housing to assist in human safety and survival.

The Honorable Brian E. Lawlor, the newly appointed Commissioner of New York State’s Division of Housing & Community Renewal (DHCR) and CEO and President of ‘nyhomes’, introduced the Governor. Significant components of Lawlor’s appointment are the assumption of the combined responsibilities for both DHCH and nyhomes, as well as Lawlor’s recognized service and experience as an attorney within the affordable housing world.

During the luncheon, the Project of the Year Award – Upstate was awarded to Birchez Associates for The Birches at Esopus, an 80 unit affordable senior housing community in Ulster Park, N.Y. Accepting the award was Steven L. Aaron, Founder and Managing Member of Birchez Associates. In recognizing the award, Aaron said, “This award means so much to us because it comes from our peers – those involved in funding, designing and building affordable housing in the state.” Birchez Associates, a for-profit company based in Kingston, N.Y., has developed and manages four affordable senior communities and one workforce housing community. The company’s website, www.Birchez.com, provides more information on each of the five communities.

Also addressing the group was Assemblymember Vito J. Lopez, Chair of the NYS Assembly Housing Committee, who urged the audience to fight for issues that are important to affordable housing in the effort to help the working poor and seniors. Further, Assemblymember Lopez stressed the need for partnership in creating and sustaining affordable housing stock, whether new developments or rehabs. In the case of Birchez Associates, they have successfully partnered with not-for-profits, New York’s Department for Housing and Community Renewal (DHCR), nyhomes, the Housing Finance Agency, the New York Housing Trust Fund, the Federal Home Loan Bank of New York, and other financial sources in creating their communities.

The luncheon was attended by over 1,000 leaders in affordable housing, from politicians, architects, developers, housing and advocacy agencies, attorneys, accountants, and building suppliers. The day-long event held April 29th, 2010, at the New York Marriott Marquis off Times Square in New York City featured exhibitions and seminars in addition to an opening session and luncheon. The New York State Association for Affordable Housing, formed in 1998, is a trade association for private sector organizations throughout New York State that are involved in affordable housing.

Photo caption from left to right: Priscilla Almodovar, Chief Operating Officer of Chase Community Development, Alison Badgett, Executive Director of NYSAFAH, Steven Aaron, Managing Member of Birchez Associates, Ann Soja, President of First Sterling.   picture credit: John Halpern

American dreaming

Thursday, February 28th, 2008

HVBiz, 2.28.08 by Lynn Woods:

Getting more affordable housing isn’t easy. With high rents and the median price of a home in the counties of Ulster and Dutchess well beyond the means of lower-income people, the demand is great. Competition for grants and low-cost financing has increased dramatically, making it more difficult for both nonprofit and private developers to qualify for the subsidies.
“The financing is more difficult to get as more communities are recognizing they have a significant need for senior affordable housing,” said Steve Aaron, president of Birchez Associates, which built, owns and manages three affordable rental developments in Ulster County, two of which are for seniors. Aaron just broke ground on a fourth senior affordable rental development, located in Esopus.
In the town of Ulster, Aaron completed a 72-unit rental complex four years ago, which is rented out to seniors with 30 percent to 60 percent of median income. He has just gotten approval from the town to build an additional 67 units at the site. He also has a similar 60-unit senior rental development in Saugerties. A third project, located in Kingston, consists of 80 units targeted to families with 40 to 60 percent of median income.
Aaron was invited by the town of Esopus to build an affordable senior housing development. After two years of looking, Aaron and the town located an appropriate site, which has easy access to Route 9W. Its proximity to Ulster BOCES is another plus: Aaron said the facility’s programs for seniors will be a valuable amenity to future residents. A new sidewalk will enable pedestrians to walk to the Town Hall. Aaron has made arrangements to have both the county and the city of Kingston extend their bus services to the area.
Aaron said the rents for the two-bedroom and one-bedroom units will likely range from $500 to $700. His target market is people age 62 or over who have 50 to 60 percent of the median income. He expected the project to be completed by the end of the year.
The program was approved by the town Planning Board despite opposition from some residents on nearby River Road. “They thought we were building low-income housing, like in the Bronx,” Aaron said. But after many meetings with the public, “we reduced the amount of dissenters to a handful of people.”
Aaron said he received federal tax credits through the New York State Division of Housing & Community Renewal (DHCR) for his three previous affordable rental developments. But he was unsuccessful in qualifying for the $20 million Esopus project. Instead, he is receiving $11.8 million in tax-free bonds through the New York State Housing Finance Agency. The tax credit will amount to 4 percent (compared to 9 percent through the DHCR). He is also putting in several million dollars of his own money, he said.
The federal tax credit, which was created under the Tax Reform Act of 1986, is the primary incentive offered to developers for building low-income rental housing. This year, the federal government has budgeted $35.2 billion for the credit. The credit is divvied out to the states, which administer the money through various agencies, such as the DHCR. The credits are claimed in equal amounts over ten years.