From 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.