HCR Preservation Strategies

May 11, 2021

Governor Andrew M. Cuomo

CommissionerRuthAnne Visnauskas

HCR Preservation Strategies

May 11, 2021 2

Office of Housing Preservation: Mission Statement

The Office of Housing Preservation’s (“OHP”) mission is to preserve state-assisted affordable

housing—the backbone of communities for low- and moderate-income New Yorkers. We do this by

monitoring their physical and financial health, enforcing statutory and regulatory requirements, and

administering rental subsidy and energy efficiency programs. The preservation of affordable

homes is our utmost goal, providing housing choice for the New Yorkers we serve.

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OHP Main ContactsRebecca Koepnick

SVP/Chief Strategy Officer for Portfolio Preservation

Melina StratosAssistant Commissioner of

Operations

Kelly RichardsonDirector of Data

Management

Samantha Pearce, VP Sustainability

Dan HenkinDirector, Weatherization

Assistance Program (WAP)

Dan BuyerAssistant Commissioner, Section 8

Connie BrunoDirector, Housing Choice Voucher Program (HCV)

Jerry D’HuyDirector, Performance

Based Contract Administration (PBCA) and

Rural Rental Assistance Program (RRAP)

Alex Abrams - VP Portfolio Management

Dan MurphySVP/Assistant Commissioner Statewide Asset Management

(SAM)

Maralyne FleischmanDirector, HTFC/9% AMU

Rob LandyVP Financial Operations

Kathryn MarnellVP, HFA AMU

Al Walcott & Cathy Sparks

Director, Mitchell-Lama and Public Housing

Kathy RodriguezAssistant

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HCR Portfolio OverviewAreas for collaboration

• Portfolio preservation: expiring use properties, qualified contract sales, troubled properties, properties with capital needs

• Credit committee• Consents/approvals

Program Active Projects

Affordable Units

4% Tax Credit/Bond Financed/Subsidy Financed

616 78,331

9% Tax Credit/Capital Programs 1,488 78,846

Mitchell-Lamas (coop and rental) 139 65,574State-Aided Public Housing 17 1,800HUD Project Based Section 8 Properties 98 101,209

TOTAL 2,358 325,760

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Hudson Valley Portfolio

*3 Housing Authorities with 6 projects**Assisted units

Program # of Projects # of Units

9% & HTF 234 15,206

4% & Bond-Financed 139 16,072

State-Aided MHA 6* 457

Mitchell-Lama 18 2,638

PBCA 114 10,089**

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HCR Portfolio: Current Status4% portfolio• 2020- to date: 3 forbearances approved9% portfolio• 2020: 6 forbearances approved• 2021: 1 approved to date

Portfolio Projects Tax Credit Units

9% HTFC 210 7,736

4% HFA 8 593

Year 30 Projects (by 2025) Year 15 Projects (by 2025)Portfolio Projects Tax Credit Units

9% HTFC 107 5,674

4% HFA 118 14,253

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Preservation Tools (Rental Assistance)Housing Choice Vouchers (HCV)

• Allocate PBVs competitively twice per year to new and existing, HCR-financed projects.

Performance Based Contract Administration (PBCA)• Started the P+ initiative to make upgrades in PBCA properties leveraging WAP• Contingent on extension/renewal of HAP Contract

Rural Rental Assistance Program (RRAP)• State funded rental assistance to properties in rural areas the that were financed

through the USDA’s Rural Development (RD) 515 program. • Serve 241 properties and 4,994 units.

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Preservation Tools (Regulatory)HTFC/HFA Refi Term Sheet

• For multi-family rental housing currently under a regulatory agreement with HTFC, HFA or DHCR

• Allows owners distributions as part of rehabilitation and refinancing of in exchange for extended affordability (20 years).

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Weatherization Assistance Program: An Overview

• Federally-funded energy efficiency program– Appx. $60 million annually to WAP Subgrantees across the

State– In normal times: more than 8,400 units completed each year– 51 Subgrantees and 2 Training and Technical Assistance

Providers

• Both single-family and multifamily buildings assisted

– funds target buildings primarily occupied by very low-income households

• Average cost-per-unit is under $7,000; funds are invested based on an energy audit

– Work resulting in highest energy savings compared to investment is prioritized

Stimulus funds forthcoming

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HCR’s Housing Plan: An Overview$20B commitment to affordable housing and homelessness:

• $10B for 100,000 affordable and 6,000 supportive units over five years

• NYS Budget passed $2.5 billion in capital

• Approximately half preservation / half new construction

• Approximately half in New York City / half in rest of the State

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Resource AvailabilityTwo Primary MethodsTax-exempt Bond and Subsidy Applications:• Applications are accepted on a continuous basis • Includes tax-exempt bonds and as of right 4% LIHTC in addition to a

wide variety of subordinate financing resources and SLIHC

Unified Funding Applications:• Applications are accepted twice a year based on a highly competitive,

single-source request for proposals process • For 9% LIHTC and a wide variety of subordinate financing resources and

SLIHC

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Application Review Process

Application Received

(Continuous)

Eligibility and Scoring

Review

Interactive Project

Review and Underwriting

Approvals Project Closing

Application Received

(2x a year)

Eligibility Review

Rating and Ranking

Project Review and Underwriting

Project Recommendation

Project Closing

For Tax-exempt Bond and Subsidy Projects

For Unified Funding Projects

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HCR Preservation Program: Public Housing• Gap financing to address the capital needs and long-term affordability of

federal Public Housing Authorities (PHAs) outside NYC.

• Prioritized for properties approved for participation in HUD’s Rental Assistance Program (RAD1), but projects not utilizing RAD1 may also be eligible.

• Eligible costs are for site acquisition, hard costs, and related soft costs.

• More than 25,000 non-NYC HUD Public Housing units

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HCR Preservation Program:Mitchell Lama Preservation• Eligible projects must be an Article 2 Mitchell Lama seeking financing for capital

improvements, project upgrades or loan refinancing.

• Subordinate second mortgage financing is available for projects securing first mortgages through conventional bank loans, government sponsored entities such as Freddie Mac or Fannie Mae, or HUD.

• First mortgages financed by taxable or tax-exempt bonds issued by HCR’s Housing Finance Agency (HFA) will be available at HCR’s sole discretion. Construction and permanent financing is available.

• Minimum 40-year regulatory agreement.

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HCR Preservation Program: Multifamily Preservation (MPP)

• Provides financing for the preservation and improvement of rental properties located throughout New York State.

• Financing is only available for substantial rehabilitation or moderate rehabilitation of site-specific, multi-family rental housing:• currently under a regulatory agreement or extended use agreement with

HCR or another State, Federal or local housing agency• that will have first mortgages financed by tax-exempt or taxable bonds

issued by HFA, or as a “stand alone” resource for projects without LIHTCs or bonds.

• Minimum 40-year regulatory agreement.

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Sustainability Overview

Areas for collaboration

• Electrification and Energy Efficiency• Contributions to Design Guidelines• Review Standards• Incorporation of LMI Funds/Green

Bank Subordinate Debt

Climate Leadership and Community Protection Act Timeline

Reduce Green House Gas (GHG) emissions compared to 1990 levels, 40% by 2030, and 85% by 2050

May 11, 2021 17

OHP Main ContactsRebecca Koepnick

SVP/Chief Strategy Officer for Portfolio Preservation

Melina StratosAssistant Commissioner of

Operations

Kelly RichardsonDirector of Data

Management

Samantha Pearce, VP Sustainability

Dan HenkinDirector, Weatherization

Assistance Program (WAP)

Dan BuyerAssistant Commissioner, Section 8

Connie BrunoDirector, Housing Choice Voucher Program (HCV)

Jerry D’HuyDirector, Performance

Based Contract Administration (PBCA) and

Rural Rental Assistance Program (RRAP)

Alex Abrams - VP Portfolio Management

Dan MurphySVP/Assistant Commissioner Statewide Asset Management

(SAM)

Maralyne FleischmanDirector, HTFC/9% AMU

Rob LandyVP Financial Operations

Kathryn MarnellVP, HFA AMU

Al Walcott & Cathy Sparks

Director, Mitchell-Lama and Public Housing

Kathy RodriguezAssistant

May 11, 2021 18

Questions / Discussion