Westchester County is now accepting applications for a $100 million program that it anticipates will double the number of affordable housing unit entering the production pipeline. The program is the Housing Flex Fund (HFF) that provides financing for affordable housing developments.
HFF funding will be provided as loans to affordable housing developers, including nonprofit and profit-making entities. The interest rate on loans is up to 5%.
HFF was established last year. It’s designed to help facilitate the development of affordable housing projects in Westchester that are shovel ready. The units must serve households earning at or below 65% of the County Area Median Income (AMI).
Westchester County Director of Operations and IDA Chair Joan McDonald described HFF as being the first program of its kind in the U.S.
According to County Executive George Latimer, “By working collaboratively with our residential development community, we will be able to have a direct impact on the creation of much-needed affordable housing.”
Latimer explained that money distributed through the HFF program comes from federal American Rescue Plan Act funds that were allocated directly to the county through the efforts of Senators Chuck Schumer and Kirsten Gillibrand.
Blanca Lopez, the county’s commissioner of planning, said that the Planning Department would be receiving, reviewing and as appropriate approving applications for funds. The County Board of Acquisition and Contract also would review the applications and decide whether to approve them.
“The department looks forward to working with our affordable housing development partners, small and big, nonprofit and for-profit to accelerate the development of affordable housing in our county,” Lopez said.
HFF will focus on four main project types to achieve immediate impact and expedite the delivery of new affordable housing units, the county said. They include:
- Last stop financing for stalled Low-Income Housing Tax Credits (“LIHTC”) developments;
- New gap source for future rental affordable housing developments of varying size, including new LIHTC and non-LIHTC developments, supportive housing and affordability preservation projects;
- Developments under construction or recently completed seeking funds to close gaps caused by construction cost and/or interest cost increases that create additional affordable homes;
- New development in areas of opportunity with limited supplies of affordable housing.
The county said funds be disbursed by December 31, 2026. It said it is anticipated that applicants would use HFF funds in conjunction with other county, state and federal affordable housing programs.
