$4.9M in tax credits set for Fredonia apartments project
$4.9M in tax credits set for Fredonia apartments project
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A tax equity syndicate announced it is getting a projected $4.9 million in tax credits to redevelop a Fredonia apartment complex.
Foss & Company stated in a press release that it closed on "four historic rehabilitation investments in Buffalo, Albany, Fredonia, and Kingston, supported by New York State Homes and Community Renewal’s Small Building Participation Loan Program."
The Fredonia project is named after its address, 343 Central. It's a renovation of the Middlesex Apartments.
The project is getting "a total of $4.9 million in projected tax credits - that's $1,971,849 federal and $2,957,774 state - to rehabilitate six multi-family properties totaling 40 units," according to the Foss & Company release.
That will be "16 one-bedroom and 24 two-bedroom apartments affordable at up to 80% Area Median Income," the release also states. "Developer Good Carbon is incorporating geothermal systems and other efficiency upgrades."
The project is looking to install a small Battery Energy Storage System as a backup power source in case of a power outage.
The award of the so-called "historic tax credits" was evidently helped along by a March recommendation from a state office that Middlesex Apartments get added to the State and National Registers of Historic Places. The apartments were constructed between 1947-49 and are a notable example of a mid-1900s Colonial Revival "garden apartment," a housing type that gained popularity after World War II.
The state's Small Building Participation Loan Program "is one of the more effective tools New York has for reaching the small and mid-sized buildings that larger financing structures tend to pass over,” said John Sorel of Foss & Company. “When you pair it with historic tax credit equity, you get a model that works in Fredonia as well as it does in Buffalo -- proof that public-private partnerships like this can scale across very different markets."