County relaunches affordable housing fund program

By MARTIN WILBUR

Westchester County has launched the second round of a program to incentivize developers to build affordable housing throughout the county in hopes of tackling the shortage of those units.

The county announced on Monday that the application period opened this week for Housing Flex Fund II, $25 million appropriated by the Board of Legislators in this year’s capital budget that is designed to encourage the construction of housing for working class households.

“Building on the success of the original housing flex fund, this program will provide critical financing to bring much-needed housing projects to fruition and expand opportunities for residents across the county,” said Deputy County Executive Joan McDonald. 

With the initial $90 million outlay last year, 1,250 affordable units have or will be built, said Commissioner of Planning Blanca Lopez. Affordable units built under the program ensure that rents do not exceed 65% of Area Median Income for at least the next 50 years, she said. Affordable homeownership units will be for those at 80% of AMI.

Developers have until Aug. 21 to submit an application for their projects. Lopez said preferences will be given to stalled projects that are eligible for the federal low-income housing tax credit; that need gap funding for future rental development of varying sizes; supportive housing, which typically emphasizes disabled tenants; and new housing in areas of opportunity where there is a lack of affordable units.

The county is also emphasizing shovel-ready projects where developers have already received approvals and have a clear timeline for construction and transit-oriented development.

Builders who go through the application process and are selected can receive up to $80,000 per unit for projects that receive the federal low-income housing tax credit and up to $200,000 on all other projects to defray the cost of development.

“This is Westchester investing in its own future,” Lopez said. “Every project funded through Housing Flex Fund II represents another family or household with a stable, affordable place to call home.”

After the submission period ends, the Department of Planning will be processing the applications.

County Legislator Erika Pierce said the expense of construction requires multiple sources of funding to be made available to developers in order to build affordable housing. The Town of Bedford was helped under the original Housing Flex Fund last year, when $2 million was granted to improve 12 one-bedroom units on Valley Road. Many projects struggle to find financing to complete the work.

“Anything we can do to help make certain they make it to the finish line, as far as I’m concerned, is an important job and I actually feel that the county is continuing to commit to being a helper in that,” Pierce said.

Visit planning.westchestercountyny.gov for more information.