Orange County Industrial Development Agency (OCIDA) board members on Oct. 18 accepted a monetary incentive application for rehabbing a senior housing center in the Town of Wallkill.
It’s the first time the economic development agency has agreed to consider incentives for an affordable housing project, according to Bill Fioravanti, the agency’s executive director.
“I think housing and economic development are very much intertwined,” Mr. Fioravanti told The Epoch Times. “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.”
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, is proposing to buy Wallkill Living Center and completely rehab the six-story senior building to extend its affordability for another 30 years; the facility at 455 Schutt Road was built 20 years ago.
Total purchase and construction costs are estimated to be close to $34 million.
The buyer seeks a $20 million tax-exempt bond from OCIDA, plus sales tax exemptions in the amount of $221,000 and mortgage recording tax exemptions at $94,500.
Beyond OCIDA benefits, it also seeks $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.
Rehab work inside the residential units includes remodeling the kitchens and bathrooms, replacing light fixtures and doors, and installing new HVAC systems.
Following the rehab, 58 one-bedroom units will carry rental rates half the area median income levels in Orange County, 58 two-bedroom units will have rates at 60 percent levels, and the last 20 two-bedroom units will have rates at 80 percent levels.
The majority owners of Wallkill Preservation Limited Partnership are Jeremy S. Bronfman 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 factor in considerations specific to the housing industry.
The policy provides general and industry-specific guidelines on meting out tax incentives.
