HCR, CPC, Local Officials, and Partners Celebrate Groundbreaking of New Affordable Development in Middletown

The Mill at Middletown to provide 42 affordable homes, community space, and job training to low-income families

Middletown, NY, June 24, 2015 – The City of Middletown, The Community Preservation Corporation, Inc. (CPC), New York State Homes and Community Renewal (HCR), Mill Street Partners, and Regional Economic Community Action Program (RECAP) joined local officials and partners to break ground onthe Mill at Middletown, a three-story factory building which is slated to be converted into a 42-unit workforce housing development. Located at 34 Mill Street, the Mill at Middletown will also provide community space as well as job training through the Fresh Start Café managed by RECAP, a local non-profit offering an array of services to underserved populations.

“This is a fine example of re-adaptive use of industrial buildings in our City. Development of this vacant factory structure will include workforce training and housing for our citizens. We are happy to lend our support for this important project,” said Middletown Mayor Joseph DeStefano.

James S. Rubin, Commissioner/CEO of New York State Homes and Community Renewal said, “One of the most significant things we can do to help improve the quality of life in communities is to turn underused buildings and properties into strong neighborhood assets. By redeveloping the Mill at Middletown, we are addressing the need for more affordable housing for Orange County families, preserving an important piece of Middletown’s rich manufacturing history and transforming this long-vacant structure into state-of-the-art housing. Thanks to the HCR team, and congratulations to Mill Street Partners, the Community Preservation Corporation, and all of our other partners in this exciting endeavor.”

“CPC has been investing in Middletown and working closely with its Business Improvement District for many years. Restoring historic buildings like the Mill at Middletown is part of our larger effort to revitalize a downtown community that has seen housing and jobs evaporate,” said Mary Paden, Vice President in CPC’s Hudson Valley Office. “Factories or old buildings that have been vacant for years are common in many Hudson Valley communities. This transformation will not only meet the increasing need for affordable housing with easy access to necessary services that will help enhance residents’ lives; it will also bring new life to the City’s central business district.”

Originally built in the late 19th century as a silk hat factory, the restored and renovated main factory building will house 42 families in 17 one-bedroom, 22 two-bedroom, and three three-bedroom apartments with one of the two-bedrooms reserved for an on-site superintendent. All units will be available to families earning between 30% to 50% of the area median income (AMI). In addition, the front portion of the main factory building will become the home of the third location of the Fresh Start Café, a successful café and job training program run by RECAP. One of the original factory’s accessory buildings will also be converted into a community hall for residents of the Mill development. Additional amenities will include on-site parking and laundry facilities. Designed by Magnusson Architecture and Planning (MAP), based in New York City, the updated buildings will meet or exceed the New York State Energy Conservation code requirements.

“We are thrilled that the Mill at Middletown is under construction and will soon provide high quality affordable housing to many Middletown families as well as jobs and job training to City residents. We are very grateful to all of our partners, in particular, the City and Mayor DeStefano for their leadership in helping to make this project a reality,” said Patrick Normoyle, Principal of Mill Street Partners, the developer of the project.

“I want to thank New York State Homes and Community Renewal along with Raymond James, CPC, the Leviticus Fund, the Federal Home Loan Bank of New York and the Orange County Office of Community Development for the necessary funding to make this project a reality. RECAP is excited to be part of a $15 million investment in the City of Middletown. We are providing quality rental housing and completely redeveloping a vacant and blighted building that will continue the revitalization efforts of the urban center,” said Joseph Czajka, Executive Director of RECAP.

A number of public and private partners came together to finance this project. CPC provided a $7.4 million construction loan and is slated to provide a $1.8 million permanent loan through the New York StateCommon Retirement Fund. HCR allocated $8.7 million in Low Income Housing Tax Credits with Raymond James Tax Credit Funds, Inc. as the syndicator, as well as a $1.7 million loan through the Housing Trust Fund. Additional contributions include a $600,000 grant from the Orange County’s HOME Program, $820,000 from the Federal Home Loan Bank, and $91,000 from the Urban Initiative.  JJ Sisca & Associates Corporation will oversee the construction and Rural Ulster Preservation Group will manage the property when completed.

Darryl Seavey, Managing Director Northeast Region for Raymond James Tax Credit Funds, Inc. said, “Raymond James is thrilled to participate as the equity partner in the development of the Mill at Middletown. The project brings new life and vitality into an abandoned building, which had historically been a centerpiece of community activity in Middletown, while at the same time providing high quality affordable housing opportunities for area residents for many years. Congratulations to all our partners on this exciting collaboration.”

CPC first opened its Hudson Valley Office in 1989. Since then, CPC has financed the development or preservation of 18,600 units of housing through $1.1 billion in investment in the Hudson Valley.

Contact: Eric Bederman, VP/Communications
212-895-5300, ext. 482 [email protected]