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$30 million renovation project planned for two apartment complexes

AMSTERDAM, NY – Residents of the New Amsterdam and Stratton apartment complexes may see renovations such as modernized kitchens and bathrooms and new windows and doors as part of a $30 million renovation plan made possible by a federal program called Rental Assistance Demonstration (RAD).

According to the United States Department of Housing and Urban Development (HUD), the RAD program allows public housing authorities, such as the Amsterdam Housing Authority (AHA) which currently owns the two properties, to convert the buildings from legacy public housing programs to Section 8 rental assistance programs which offer the option to involve public and private investors and lenders.

According to HUD, the RAD program addresses the problem of a $26 billion backlog of deferred maintenance on public housing nationwide.

Read information for residents about the RAD program here

A resolution passed at Tuesday’s common council meeting authorized a new payment in lieu of taxes agreement (PILOT) for the two properties. The agreement contains details of the the new structure of owners and investors in the project, as well as a general scope of the work planned.

Under the new PILOT, the AHA will pay a total of $23,905 in the first year for the two properties, increasing 1% per year for 40 years with an ending payment of $56,838. Historically, the payments have varied between $43,809 in 2012 to $28,388 in 2019.

According to the agreement, a non-profit corporation named Amsterdam NAS Housing Development Fund Company, Inc, which shares an address with Rivercrest Development Corporation located in Amsterdam, NY will hold the title to the properties for the benefit of a limited partnership named Amsterdam NAS Limited Partnership which shares an address with 3D Development Group located in Amherst, NY. Funding for the renovation project will be provided by the New York State Housing Finance Agency.

The project is planned to include

  • Asbestos and lead paint abatement
  • Replacement of windows, doors, and roof
  • Addition of insulation to meet current energy code
  • Modernized kitchens and bathrooms for all residents
  • Replacement of sanitary lines
  • Replacement of roof-mounted bathroom, kitchen, and common area exhaust fans
  • Overhaul of electrical power distribution
  • Upgraded elevators
  • Removal and replacement of all common area and apartment unit lighting with LED
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About Tim Becker

Tim Becker is the owner of Anthem Websites Inc. which publishes The Compass. He serves as both editor and a writer.
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