BY WILLIAM G. BALTER
While there is little dispute about the shortage of affordable housing in the region, there is an ever-increasing controversy about how to fix the problem. The terms of a $51.6 million fair housing settlement between the U.S. Department of Housing and Urban Development and Westchester County require the development of 750 affordable housing units in the parts of the county that have the lowest Hispanic and black populations. However, while the battle over the settlement makes the headlines, a second and perhaps more important issue affecting the affordable housing landscape is to preserve existing affordable developments to prevent the problem from getting worse.
- William G. Balter
As a longtime advocate and developer of affordable housing communities, Wilder Balter Partners Inc. believes that access to affordable housing is critical for the Hudson Valley, particularly in Westchester and its neighboring counties, where the cost of living and doing business is so high. According to a survey conducted recently by the Westchester County government, the top priority for a business wishing to relocate to Westchester is access to an educated and skilled workforce. According to that same survey, the cost of housing ranks as the top priority of workers making a decision on where to live. It is clear that affordable housing will be a critical factor to this region”™s economic growth. In addition, as the population continues to age, more affordable housing is needed to house our seniors who want to stay in their communities but whose home upkeep and taxes are no longer affordable.
It is increasingly more challenging to build affordable housing in the Hudson Valley due to high land costs, regulatory issues and necessary, but limited, governmental funding. At the same time, existing affordable housing, especially senior affordable housing, is aging and in need of significant capital improvements. Nonprofit housing sponsors of thousands of existing affordable apartments in the Hudson Valley and the metro New York region are struggling with a common problem not anticipated by their original financial model ”” how do they continue to own and operate their properties when they require significant capital funding that is not available to nonprofit sponsors?
Westhab of Yonkers recently tackled this problem head-on. Two years ago, Westhab merged its operations with the Washingtonville Housing Alliance, a small nonprofit housing organization with several small affordable multifamily buildings and one larger, 75-unit affordable senior community called Mamaroneck Towers. Shortly after Westhab took over the day-to-day management of the alliance, the nonprofit agency realized that renovations to the apartments and common areas at Mamaroneck Towers were required for the complex to remain viable for the long term as an affordable senior building. They sought to find a partner who would bring in the necessary capital and expertise while Westhab and WHA would continue to be involved in the development going forward. Westhab and WHA had a second goal for Mamaroneck Towers ”” to have the project serve as a funding source to carry on their mission of providing affordable housing and counseling resources for low-income residents in the area.
Wilder Balter Partners Inc. partnered with the nonprofits to help fulfill these goals. As owner, developer, builder and manager of properties in the Hudson Valley, Wilder Balter specializes in working with municipalities and nonprofits wishing to bolster their existing affordable housing and/or build affordable housing. Over the course of the last year, Westhab, WHA and Wilder Balter developed a partnership that enabled the restructuring of Mamaroneck Towers”™ finances with tax-exempt bonds and housing tax credits totaling $15.8 million through the Westchester County Industrial Development Agency.
Renovations of the common areas and apartments will begin later this month and will be completed by year”™s end. Long-term affordability of Mamaroneck Towers is now assured for the next 30 years.
With the financial restructuring complete, Westhab and WHA created a fund of more than $3 million to invest back into the village of Mamaroneck to create additional housing opportunities and social services to those in need. Wilder Balter also is working on the financing and rehabilitation of other affordable housing communities in Westchester and Rockland counties.
For Westchester County and the rest of the Hudson Valley, the effort to provide the area”™s workforce with attractive and affordable housing options will require creativity. Even with the 750 units required under the fair housing settlement, much more affordable housing in the Hudson Valley is needed.
William G. Balter is president of Wilder Balter Partners Inc. in Elmsford. Call Wilder Balter at 914-347-3333.
