RUPCO recognized as one of “Preservation’s Best of 2016”

National preservation societies recognize The Lace Mill’s use of Historic Tax Credits to help revitalize the City of Kingston.

From an accomplished list of Historic Preservation Projects carried out across the United States, RUPCO’s Lace Mill has been identified as one of six historic preservation projects recognized as one of “Preservation’s Best of 2016.”

This award, granted by Preservation Action, the National Trust for Historic Preservation and the National Trust Community Investment Corporation, brings attention to RUPCO’s success in using the Federal Rehabilitation Tax Credit to transform The Lace Mill, a historically significant building that was underutilized with boarded windows and turning it into a viable community asset for the 21st century. The awards are intended to bring attention to the success of the Historic Tax Credit as a driver of economic development across the country. The awards will be handed out at the Preservation’s Best Congressional Reception to be held on March 15 from 5:30 to 7:30 pm on Capitol Hill in Washington D.C. Members of the Congressional Historic Preservation Caucus as well as Preservation Action members, partners and preservationists from across the nation are expected to be in attendance.

 “Preservation Action is very pleased to host this reception and recognize these exemplary historic rehabilitation projects. At a time when the future of the Federal Rehabilitation Tax Credit is uncertain, projects like The Lace Mill in Kingston, NY help to highlight the benefits of the program,” said Robert Naylor from Preservation Action.

 “We are pleased to be singled out with just a handful of projects from around the nation as a truly transformative project that adaptively restored a historic gem into a great community asset – one that is now key to the creative placemaking magic that is occurring in midtown Kinston,” said Kevin O’Connor, RUPCO’s Chief Executive Officer. “We saw early on the potential of this boarded-up building to meet one of Kingston’s varied community needs and we are thrilled with the results.”

“Having studied architecture and urban planning, I knew at the outset, that the project would make a difference in the neighborhood,” notes Scott Dutton, the project’s architect. “However, what I completely underestimated is how much of a catalyst for neighborhood revitalization this project would become and how quickly that would happen. The number of people that have told us that they made the decision to either purchase property or establish their businesses/residences in Midtown because of what they saw happening at the Lace Mills Lofts continues to astound me.”

Preservation Action has been hosting National Historic Preservation Advocacy Week for over 30 years. By honoring exemplary rehabilitation projects, its annual reception helps to highlight the benefits of the Federal Rehabilitation Tax Credit. The HTC is the largest federal investment in historic preservation, responsible for redeveloping over 40,000 buildings, and contributing to the revitalization of cities and towns across the country. The Lace Mill investment was $18.7 million and fully one-third of the costs were paid for by private sector purchase of the Federal and New York State Historic Tax Credits. Morgan Stanley served as the investor.

RuthAnne Visnauskas, Commissioner of New York State Homes and Community Renewal, said, “HCR is proud to be part of this impressive and critically important development. The Lace Mill is once again an anchor to midtown Kingston. The preservation of this historic building will contribute to a more economically vibrant community and will provide safe, affordable housing for local artists. Under Governor Cuomo’s leadership, HCR will continue to invest in the adaptive reuse of vacant, historic buildings so that we can revitalize our neighborhoods while preserving our most significant buildings.”

RUPCO is an affordable housing advocate and innovative community developer in the Hudson Valley, is a charter member of NeighborWorks America, a national network of 245 housing and community development change agents. RUPCO affects the lives of over 8,000 people through its work with homelessness, rental assistance, foreclosure prevention, first-time homebuyers, home rehabilitation and energy efficiency and real estate development. RUPCO is currently working on $75-million worth of real estate development in the Hudson Valley, including Energy Square, Landmark Place, and The Metro in Kingston and the Newburgh Neighborhood CORe Revitalization. For more information, visit www.rupco.org

Preservation Action is a 501(c) 4 nonprofit organization created in 1974 to serve as the national grassroots lobby for historic preservation. Preservation Action seeks to make historic preservation a national priority by advocating to all branches of the federal government for sound preservation policy and programs through a grassroots constituency empowered with information and training and through direct contact with elected representatives.
 

RUPCO receives national award for innovative historic rehabilitation financing

Chuck-Snyder-Guy-Kempe-Joe-Eriole-Frank-Paulo-Kevin-O'ConnorFrom a highly distinguished roster of nationally recognized affordable housing developers, RUPCO received the David Reznick Award for Most Advanced Financial Structure Award in early November. Affectionately referred to as “The Timmy’s,” the J. Timothy Anderson Awards for Excellence in Historic Rehabilitation are given annually by the National Housing & Rehabilitation Association (NH&RA), one of the country’s top housing industry groups. RUPCO was also a finalist in two other categories: Best Historic Rehab Utilizing LIHTCs (Low Income Housing Tax Credits) and Best Historic Mill or Factory Rehabilitation.

“To be recognized by the NH&RA and a finalist running with national private and nonprofit developers of this caliber is an honor,” notes Kevin O’Connor, Chief Executive Officer at RUPCO. “As financing diminishes for housing construction for those most in need — seniors, veterans, working families and those requiring supportive housing — we are forced to get creative in our financial partnering. Exploring outside-the-box alternatives allow new home creation like The Lace Mill to fill the vacuum of safe, affordable housing. We’re at a crisis in our communities; seven out of 10 renters are paying more than 50% of their monthly income on housing costs. By finding new ways to finance housing creation, we can come through construction, delivering on the demands of our communities. I credit RUPCO’s Chief Financial Officer, Frank Paulo, for keeping our development team true to cost and managing a fiscal portfolio worthy of this award. We pulled together 18 different finance vehicles totaling $18.9 million to create a true public-private partnership in developing The Lace Mill.”

RUPCO combined investment vehicles such as federal low-income tax credits with syndicator National Equity Fund, New York State Historic Tax Credits, a NYSERDA energy grant, private investment through Morgan Stanley, and a private mortgage with CHASE to meet its funding objectives. “The complexity of this financial structuring combined many sources willing to see RUPCO’s vision of what this vacant building could be and the impact its revitalization could have on the surrounding community,” notes Frank Paulo, RUPCO’s Chief Financial Officer. “Local investors included TD Bank Charitable Foundation, City of Kingston, Central Hudson, Ulster Savings Bank, and RUPCO also contributed to meeting the construction budget. We’re thankful to have national partners like NeighborWorks America, Urban Initiative, and Federal Home Loan Bank, as well as state partners NYSERDA, NYS Housing Finance Agency, and New York Main Street Program. Together we created this historic financing structure.”

The 2016 Timmy winners in 11 categories represented visionaries from California, the District of Columbia, Illinois, Maine, Massachusetts, Minnesota, Nebraska, New York, and North Carolina. “While The Lace Mill has enjoyed accolades for its design and construction integrity, the recognition of the project’s financial structure by the NH&RA on a national stage speaks directly to the commitment that RUPCO brings to both this project and this community,” notes Chuck Snyder, Director of Construction. “The assembly and administration of multiple funding sources at this level requires determination, knowledge and perseverance that is unparalleled within the development community and is a credit to the work delivered by the RUPCO organization.” Snyder oversaw the construction process at The Lace Mill.

“To be recognized in three separate categories reflecting both the complexity of the financing and the innovation of the project as a whole is a tribute to the expanding breadth of organizations like RUPCO nationwide,” adds Joe Eriole, Vice President of Real Estate Development at RUPO. Eriole and Snyder accepted the award on RUPCO’s behalf at NH&RA’s ceremony in Boston.

According to NH&RA, the federal historic rehabilitation tax credit is a tax incentive used by developers to help finance the renovation of historic buildings of all types for continued use as offices, apartments, hotels, stores, and other purposes. Available nationwide, federal historic tax credits are instrumental in revitalizing urban downtowns as well as suburbs and rural communities. NH&RA created the Timmy Awards in 2005 in memory of J. Timothy Anderson, a Boston architect, educator and preservation advocate. A singular figure in the historic rehabilitation business, Anderson’s legacy includes numerous Boston area projects and a seminal study that helped preserve Miami’s South Beach Art Deco District.