$175,000 Finances Development of Affordable Homes through lead and asbestos remediation addressing the biggest barrier to redevelopment
September 21, 2015
Newburgh – Community Capital New York, Inc. and JP Morgan Chase 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.
A $150,000 grant from JP Morgan Chase catalyzed the initiative to redevelop neighborhoods in the downtown core, the Broadway corridor, by overcoming lead and asbestos remediation, cited by both not for profit and for profit developers 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.” 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.
Local community banks have matched $25,000 of the Chase grant, capitalizing the Feasibility Fund at $50,000, including Orange County Trust, First Niagara, Key Bank, the Hudson Valley Federal Credit Union, Walden Savings Bank, TD Bank Charitable Foundation and M&T Bank.
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.
“At JPMorgan Chase, we believe we have a responsibility to leverage our resources to support the communities where we live and work,” said Robert L. Como, Senior Vice President at JPMorgan Chase & Co. “The development of safe, healthy affordable housing is key to economic stability in Newburgh. We are proud to support Community Capital New York in their vital work to catalyze redevelopment in downtown Newburgh through this unique investment.”
“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 JP Morgan Chase 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.
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 https://communitycapitalny.org/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 JP Morgan Chase.
At JPMorgan Chase, we believe we have a fundamental responsibility to help our clients and our communities navigate a complex global economy and address their economic and social challenges. We work with community partners to create pathways to opportunity by supporting workforce development, financial capability, small business development and community development in the regions where we do business. In 2013, JPMorgan Chase and its Foundation gave more than $210 million to thousands of nonprofit organizations across 42 U.S. states, the District of Columbia, and 44 countries around the world. More than 47,000 employees provided 540,000 hours of volunteer service in local communities around the globe.