Contributing $2,500 to help capitalize a Feasibility Fund for lead and asbestos testing to address the biggest barrier to redevelopment
Newburgh – Community Capital New York, Inc. and KeyBank have partnered to launch the Newburgh Housing Remediation Fund, a loan fund designed to increase the supply of safe, affordable homes for families in targeted locations in the City of Newburgh as part of a broad community development effort.
The Newburgh Housing Remediation Fund has two components: a Feasibility Fund which will provide forgivable loans to developers as an incentive to complete necessary lead and asbestos inspections on properties they are considering buying in the target area, and Remediation Grants, a pool of funds from which Community Capital can make grants to subsidize lead and asbestos remediation on strategic parcels critical to community impact and whole block revitalization.
KeyBank joined with other community financial institutions to create a total loan fund of $175,000.
“Community partnerships are a powerful, transformative tool from which innovative programs and approaches are developed that can address real community needs,” said Ruth Mahoney, president, Hudson Valley/Metro NY Market, KeyBank. “At KeyBank, we’re committed to building these partnerships and helping individuals and the City of Newburgh thrive. Through the Remediation Fund, we believe we can help strengthen the economy and improve the quality of life for many people in the city of Newburgh in a very meaningful way.”
KeyBank contributed $2,500 to the capitalization of the Feasibility Fund, an initiative to redevelop neighborhoods in the downtown core, the Broadway corridor, by overcoming barriers to lead and asbestos testing, cited by both nonprofit and for profit developers, along with remediation, as the biggest barrier to redevelopment.
“Working together with local officials and business leaders we have secured a critical investment in Newburgh that will strengthen our community and create jobs right here in the city,” said Rep. Sean Patrick Maloney. “In addition to putting folks back to work, this partnership will allow Newburgh to complete essential economic development projects that will combat blight, grow our local economy, and ensure a brighter future for the Hudson Valley.”
Community Capital New York provides “gap financing” for affordable housing development in the lower Hudson Valley, Fairfield County and the Bronx, used by developers to pay for Pre-development expenses incurred before breaking ground, bridge loans and small construction loans.
“Community Capital’s mission is to use innovative financing to create opportunity in our communities and for their residents,” notes Community Capital Executive Director Kim Jacobs. “We believe that relatively modest amounts of funding, applied with flexibility and creativity can help change the course of events for cities like Newburgh that have suffered from disinvestment for far too long. Newburgh has so many positive attributes: an incredible view of the Hudson River, a wealth of historically and architecturally significant buildings, a well-ordered, walkable community and committed citizens, ready to see Newburgh take its place as one of the crown jewels of the Hudson Valley. We are thrilled to play even a small role in that evolution.”
The City of Newburgh has suffered from decades-long disinvestment, leaving it with approximately 700 vacant properties, a quarter of which are tax foreclosed and most of which are located in the East End Historic District. The buildings are old, with over 70% of the housing units built prior to 1950 and the age of the buildings is driving the unusually high cost of lead and asbestos abatement.
“This funding represents positive momentum to revitalize our neighborhoods and improve the lives of the residents who live here,” said Mayor Judy Kennedy “I want to extend our thanks to Community Capital New York and Key Bank for their Commitment to revitalization of this great City.”
This initiative is based on a model that Community Capital has used successfully to create affordable housing in Westchester County, and has the support of the Newburgh Land Bank, Habitat for Humanity-Newburgh, and other community partners including Anthony Owens, Key Bank’s Vice President, Community Development Banking.
Eligible properties must be located in an area bounded by South Street, Liberty Street, South William Street and Robinson Avenue and be part of a broader rehabilitation prioritized by the City’s Vacant Property Revitalization Plan (the Pace Study). “By establishing a beach head, and continuing to build on its success, we can slowly eliminate abandoned properties and help eradicate the crime that is often associated with them, noted Ms. Jacobs.
Feasibility loans will be capped at $5,000 per building. Loans will be repaid at the close of construction financing for projects moving forward. Remediation grants will be made to those properties seen as critical to implementation of an established community development strategy, and will be reviewed by the Newburgh Housing Remediation Fund Advisory Committee, a committee composed of community partners and participants.
To apply for a Feasibility or Remediation Grant from the Newburgh Housing Remediation Fund please go to http://michaelnloewenberg.com/cc2/newburgh-housing-remediation-fund/
About Community Capital New York: A not-for-profit alternative lender, Community Capital empowers underserved, people to become stakeholders in a more inclusive economy through a combination of education and innovative financing. Community Capital serves as an economic catalyst in creating vibrant, diverse and prosperous communities.
Over the last 25 years, Community Capital has leveraged investments of more than $425 million in the mid-Hudson Valley, creating more than 2500 affordable homes for close to 7,000 low income residents.
Community Capital New York also makes small business loans from $1,000 to $250,000 in Orange, Westchester, Rockland, Sullivan, Ulster and Dutchess counties, Fairfield Co, CT and the Bronx, and is particularly focused on helping entrepreneurs and small business owners unable to find traditional sources of financing, including pre-revenue start-ups and women, minority and low income borrowers.
About Key Bank:
Key Bank has 241 branches in New York State, and was the 2012 SBA 7 (a) Lender of the Year and a top SBA lender nationwide for more than 15 years. As of March 2014, $14.3 million in SBA loans were closed by Key Bank in the Hudson Valley. Key Bank is committed to helping the City of Newburgh with its revitalization efforts, and to providing safe, decent and affordable housing for its residents.