By Randy Koniowka
With banks still unwilling to lend and the credit markets as tight as a snare drum, two significant residential projects are moving forward in the City of Cohoes.
Phase II of the Harmony Mills Lofts is now underway adding 134 additional units to the former textile mill on North Mohawk Street. And on Van Schaick Island, Watersview, a proposed apartment complex is close to securing its financing for a 220 unit development on Lenahens Field, on the northern end of the island.
Both projects would have proven unlikely if not for a mortgage guarantee from the United States Department of Housing and Urban Renewal.
"This is a great opportunity as banks are just not lending money yet" says Ed Tremblay, Director of Community Development for the City. "Without the HUD program, it is near impossible to move forward."
The HUD program is administered by the Federal Housing Administration (FHA). Since 1934, the FHA has secured over 37 million home mortgages and 47,205 multi family project mortgages. Currently, the FHA has 5.2 million insured single mortgages and 13,000 multifamily projects in its portfolio.
Once a mortgage is guaranteed by HUD, lenders are more inclined to issue credit seeing that if the mortgage holder defaults, the bank would still receive it's money from the federal government.
However, with nearly 450 units in Cohoes already backed by HUD, future residential development will have to rely on privately secured financing. According to Tremblay, "they (HUD) feel that it would be too much exposure to do any other projects in the city."
Those future projects include Captain's Lookout, a proposed 142 unit condominium development on Delaware Avenue on Van Schaick Island. Even with the tight credit market, the city hopes that the first building of the project will be built sometime this year.
As for Watersview, Construction could begin this year and take several years to complete.
Phase II of Harmony Mills, already under construction, is set to be completed sometime in 2011.
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