First Federal Savings of Middletown Uses AHP Subsidy to Transform Abandoned Buildings into Viable Senior Housing

Can five old, historic, freestanding buildings each reflecting a particular architectural style become a beautiful residence for senior citizens? For this challenging redevelopment venture in the picturesque town of Goshen, New York, the answer was a definitive "yes." The once abandoned buildings have been reconstructed into an affordable rental housing complex for senior citizens called Hearthstone. Hearthstone is now home to 92 very low- and low-income seniors, some with physical challenges.

The HLB awarded a $600,000 AHP subsidy to member lender First Federal Savings of Middletown to provide gap financing for the $8.4 million dollar project. Hearthstone obtained additional support from seed money granted by Orange County and Low Income Tax credits. Wilder Balter Partners, the developer of the complex, were able to maintain the architectural integrity and history of the five, century-old structures. Although the interior was completely modernized, Hearthstone's historical exterior was preserved. AHP-subsidized grants and loans are awarded to applicants to support the purchase, construction, or rehabilitation of owner-occupied or rental housing. The Hearthstone project qualified for AHP funding since the rehabilitation created rental housing specifically equipped for the elderly, where at least 20% of the residents earn at or below 50% of the area median income.

AHP is a subsidy program in which funds are awarded through a competitive process to member lenders in support of projects that create and/or preserve housing for lower income families and individuals. For more information on the AHP program, or to see if the housing project you have in mind is eligible for AHP funding, contact us at (212) 441-6850 or ahp@fhlbny.com.

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