Yonkers neighborhood on rebound thanks to CPC, CRF.

What was once a "Nightmare on Elm Street" is becoming a dream come true for residents of a Yonkers neighborhood, thanks to a unique partnership that has brought 580 units of much-needed affordable rental housing to the city.

New York State Comptroller H. Carl McCall, Yonkers city officials, representatives of The Community Preservation Corporation (CPC) and local community activists and residents were on hand recently to celebrate the successful partnership between CPC and the New York State Common Retirement Fund (CRF) that has financed affordable housing in Yonkers.

Comptroller McCall and officials from Yonkers and CPC took a walking tour of several CPC/CRF-financed affordable housing projects on Elm Street, a neighborhood once plagued by crime and drugs that is on the rebound.

The Community Preservation Corporation, in partnership with the New York State Common Retirement Fund, has financed a total of 580 units of affordable housing in Yonkers, representing an investment of $20.7 million. All of the projects financed by the partnership of CPC and CRF are insured by the State of New York Mortgage Agency (SONYMA).

"Our investments in Yonkers - and our partnership with CPC - help us secure a sound return on the Retirement Fund's investment and help keep housing in New York affordable for working families and senior citizens," said McCall. "At the same time, we've helped create construction jobs. Together with CPC, we've put thousands of units of affordable housing on the market for working New Yorkers." Comptroller McCall is the sole trustee of the $104 billion Common Retirement Fund, which purchases loans from CPC.

"When CPC first decided to finance affordable housing in the Hudson Valley one of our first investors at the time was the Common Retirement Fund," said Sadie McKeown, senior vice president of The Community Preservation Corporation. "Without the Fund's commitment to affordable housing, we never would have gotten off the ground in Yonkers or the rest of New York State. What CPC and the Common Retirement Fund have achieved working together in Yonkers, as well as other communities throughout the state, is truly remarkable."

Mckeown also praised the Yonkers Bureau of Community Development, which has provided an additional subsidy of approximately $2.3 million for the Yonkers projects financed by the partnership of CPC and CRF.

For the two projects visited on the walking tour - 150-152 Elm Street and 125-145 Elm Street - CPC provided financing of approximately $1.8 million for the rehabilitation of 47 rental apartments.

The property at 150-152 Elm Street had been vacant for three years until Mario Sasso, a Yonkers police officer, bought the property and began an extensive rehabilitation of the building. With CPC financing of $550,000, Sasso completely gut rehabilitated the 12-unit building, including new electric and plumbing systems, a new boiler, new beams, new kitchens and bathrooms. Rents in the building range from $600 to $1,800 per month for one- and two-bedroom apartments.

On the north side of Elm Street is a group of five separate buildings beginning at 145 Elm Street. Previously owned by a slumlord, the buildings were vacant and deteriorating, and had become a haven for drug addicts and squatters. One of the buildings 129 Elm Street - was damaged by a major fire. Michael Puntillo, a principal of JOBCO, a large New York developer, purchased the five buildings in 1993 and completely demolished the interiors and installed new plumbing, electrical, roofing, stairwells and windows. CPC provided financing of $1.241 million for the 35-unit complex. The one-, two- and three-bedroom apartments rent from $500 to $900 a month.

SONYMA is the state's primary tool to help low- and moderate-income families achieve the American Dream of home ownership. Since 1970, SONYMA has provided affordable mortgages to more than 100,000 families buying their first homes. SONYMA's Mortgage Insurance Fund provides pool insurance for these mortgages, as well as mortgage insurance for affordable multifamily and senior housing developments.

The Community Preservation Corporation is a private not-for-profit mortgage lender specializing in the financing of affordable housing throughout New York State. CPC is sponsored by 94 New York State banks and insurance companies. Since 1974, CPC has financed more than 60,000 affordable housing units statewide, representing a private-public investment of more than $1.8 billion.