The Newburgh CORe Neighborhood Revitalization project, an affordable housing initiative that will renovate mixed-income rental units in the city of Newburgh, received a $25.2 million credit facility from Sterling National Bank.
The credit facility, which closed on Feb. 28, includes an $11.2 million construction loan and a direct equity acquisition of certain tax credits for $14 million.
“We are committed to reinvesting in our local communities, and proud to provide financing for this important project in Newburgh, which will play an important role in revitalizing a neighborhood in need,” said Vincent Maine, senior managing director of community development at Sterling National, the principal subsidiary of Sterling Bancorp.
The Newburgh CORe initiative is being developed by Kingston-based affordable housing provider RUPCO Inc. and will create 45 affordable rental apartments in 15 vacant buildings in Newburgh.
The buildings were acquired by RUPCO from the Newburgh Community Land Bank and sit within a four-block area between First Street, Broadway, Lander Street and DuBois Street in a qualified low-income census tract.
The scatter-site development includes one studio, 25 one-bedroom, 10 two-bedroom and 9 three-bedroom apartments for income-eligible tenants. Apartments range in size from 482 to 1,348 square feet.
The project will offer housing for homeless individuals, middle-income families, artists, veterans and seniors. Twelve units will be designated with preference to tenants involved in artistic and literary endeavors.
As part of the project, an abandoned dress factory building at 39B S. Johnson St. will be developed into a multiuse community center and community policing sub-station.
“We are excited to bring change to the community through this project, making not only affordable housing, but also youth programs, computer facilities, arts and literature, available to its residents,” said Kevin O’Connor, CEO of RUPCO.
The CORe (Community, Opportunity, Reinvestment) initiative is an effort led by Gov. Andrew Cuomo to address disparities in public safety, employment, health, housing and education within two pilot cities: Albany and Newburgh.
A ceremonial groundbreaking for the Newburgh CORe project was held on April 7, and the renovation is expected to take 18 months.
Upon completion, the properties will be managed by Safe Harbors of the Hudson, a mixed-use, nonprofit housing and redevelopment organization that controls The Lobby at the Ritz, Ann Street Gallery and The Cornerstone Residence in Newburgh.
