Award to Provide Critical Financing to Meet Affordable Housing Need
Rochester, NY (October 19, 2010) - Officials from the US Department of the Treasury announced $80 million in Capital Magnet Fund (CMF) awards for the development of affordable housing in low-income communities at an event Thursday in Oakland, California. PathStone Corporation is one of two organizations in New York, and 23 organizations nationally, to receive funding from the inaugural round of CMF awards.
PathStone will use the $2 million award to capitalize a predevelopment fund to pay for up-front costs associated with developing multifamily housing in Puerto Rico. PathStone has been developing its program and service capacity in Puerto Rico for the past 12 years, and focuses its affordable housing efforts there in very geographically difficult areas to develop. Each affordable housing development may require an up-front investment of between $50,000 and $150,000 to pay architectural, engineering, environmental and consulting fees.
The CMF award will provide the necessary up-front capital for PathStone to begin an aggressive production plan, significantly impacting the lives of isolated, low-income workers on the island. PathStone’s projected increase in affordable housing developments in Puerto Rico will provide decent, safe housing with stable rent, allowing for less isolation and improved access to schools, health care, and year-round employment. The development of new housing units will create much needed local jobs.