Orange County IDA to consider incentives for initial affordable housing application.
Orange County Industrial Development Agency (IDA) Considers Incentives for Affordable Housing Project
Orange County Industrial Development Agency (IDA) board members on Oct. 18 accepted a monetary incentive application for rehabbing a senior housing center in the Town of Wallkill.
According to Bill Fioravanti, the agency’s executive director, this is the first time the economic development agency has agreed to consider incentives for an affordable housing project.
Mr. Fioravanti believes that housing and economic development go hand in hand. He states, “It is hard to attract many employers unless you can show adequate workforce to support them, and it is tough to build up a robust and diverse workforce when you don’t have adequate housing.”
“Especially today, more than ever, there is a severe housing crisis in many parts of Hudson Valley, and I think we all need to play a role in helping to deal with that,” he added.
Orange County Industrial Development Agency, also known as OCIDA, is a public benefit organization empowered by state law to offer tax incentives and tax-exempt bonds to spur economic and job growth.
Although the first housing application concerns affordable senior living, the agency is open to considering various types of affordable housing options, according to Mr. Fioravanti.
The applicant, Wallkill Preservation Limited Partnership, plans to purchase and completely rehab the six-story senior building at 455 Schutt Road to extend its affordability for another 30 years. The facility was built 20 years ago.
Total purchase and construction costs are estimated to be close to $34 million.
The buyer is seeking a $20,000,000 tax-exempt bond from OCIDA, along with sales tax exemptions of $221,000 and mortgage recording tax exemptions of $94,500.
In addition to IDA benefits, the buyer is also pursuing $11 million in federal low-income housing tax credits, a $1 million loan from the state Housing Trust Fund Corporation, and discounted property taxes from the Town of Wallkill.
The rehab work inside the residential units includes remodeling the kitchens and bathrooms, replacing light fixtures and doors, and installing new HVAC systems.
After the rehab, out of the 136 units, 58 one-bedroom units will have rental rates at half the area median income levels in Orange County, another 58 two-bedroom units at 60 percent levels, and the remaining 20 two-bedroom units at 80 percent levels.
The majority owners of Wallkill Preservation Limited Partnership are Jeremy S. and Eli M. Bronfman. The duo from the influential Bronfman family founded Lincoln Avenue Capital, an affordable housing investment firm, in 2016.
According to Mr. Fioravanti, OCIDA will likely revisit its Uniform Tax Exemption Policy later this year to consider specific factors related to the housing industry.
The policy provides general and industry-specific guidelines for granting tax incentives.
What are the main objectives of the E law in Orange County, NY, related to industrial, manufacturing, warehousing, commercial, and research enterprises?
E law to promote, encourage, and assist in the development and expansion of industrial, manufacturing, warehousing, commercial, and research enterprises in Orange County, New York. The agency provides various incentives and financial assistance programs to support economic development initiatives in the county.
The recent decision by the IDA board to consider incentives for an affordable housing project demonstrates their recognition of the importance of affordable housing in driving economic growth. By supporting the rehabilitation of a senior housing center in the Town of Wallkill, the IDA aims to address the housing crisis prevalent in many parts of the Hudson Valley.
Bill Fioravanti, the executive director of OCIDA, emphasized the interdependence of housing and economic development. He stated that attracting employers becomes challenging without an adequate workforce to support them, and building a diverse and robust workforce becomes difficult without sufficient housing options.
The acceptance of the monetary incentive application for the senior housing center reflects OCIDA’s commitment to playing a role in addressing the housing crisis. In doing so, they strive to contribute to the overall well-being and economic prosperity of Orange County.
Affordable housing is a critical issue not only in Orange County but also across the nation. Many individuals and families struggle to find housing options that are within their means, resulting in increased financial burdens and limited opportunities for upward mobility. By considering incentives for affordable housing projects, the IDA is taking a proactive approach to alleviate this crisis and promote inclusivity and economic stability.
In addition to promoting affordable housing, OCIDA has been actively involved in other economic development initiatives. Recently, they approved a phase two incentive for Royal Wine, further highlighting their commitment to fostering growth and expansion in various sectors.
Overall, the Orange County Industrial Development Agency’s decision to consider incentives for an affordable housing project reflects their dedication to addressing the pressing issue of housing affordability. By recognizing the direct correlation between housing and economic development, the agency aims to create a thriving and inclusive community in Orange County. As the housing crisis continues to escalate, it is crucial for organizations and stakeholders to come together and find innovative solutions to ensure access to affordable housing for all.
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