The Department of Veterans Affairs is using an enhanced use lease to create housing for at-risk veterans and their families at the Canandaigua VA Medical Center in New York’s Finger Lakes region.
Partnering with the VA on the $11.4 million project are the Finger Lakes Addiction Counseling and Referral Agency and Cazenovia Recovery Systems. Ohio-based KeyBank provided $5 million in Low Income Housing Tax Credit (LIHTC) equity to finance the project located on Cadence Square, reported the Messenger Post. The bank also provided a $4.6 million loan to finance the construction of the project, which is scheduled to open in October.
The project includes the rehabilitation of a vacant, three-story historic building on the campus which is about 16,000 square feet. The development also includes the construction of a second building with three stories and 22,400 square feet.
When it opens, Cadence Square will offer a 15-bed, recovery-oriented community residence licensed by the New York State Office of Alcoholism and Substance Abuse Services. It also will offer eight supportive-living units coupled with recovery-oriented services aimed at helping veterans return to the community. The development also will have 17 affordable housing apartments funded through the LIHTC for veterans in need of permanent housing.
Read an interview in Multi-Housing News Online with Kevin Nowak, national equity investment manager for Key Community Development Corp. about the project and the importance of VA enhanced use leases.