Officials Break Ground on First of 47 Affordable Single-family Homes in Buffalo
Initiative Invests $24.5 Million in Combined Erie County/City of Buffalo American Rescue Plan Funding
ERIE COUNTY, NY— Erie County, the City of Buffalo and the Buffalo Niagara Land Improvement Corporation (“the Land Bank”) today joined elected officials and community members to break ground for the construction of the first of forty-seven new, affordable single-family homes in the City of Buffalo. The City and County are investing a combined $24.5 million in this initiative, part of a wider community effort to tackle the housing crisis head-on. Erie County Executive Mark C. Poloncarz today joined Mayor of Buffalo Christopher P. Scanlon, Land Bank Executive Director Jocelyn Gordon and BENLIC officials, Erie County Legislator Taisha St. Jean Tard (2nd District), Buffalo Common Councilmember Rasheed Wyatt, and Erie County personnel at 440/442 Berkshire Avenue in Buffalo to break ground for the project.
“This is an exciting and rewarding day as we break ground on the first of 47 new affordable, single-family homes in the City of Buffalo,” said Erie County Executive Mark C. Poloncarz. “Erie County government and our partners are once again addressing a problem the private sector either cannot or will not address. Our team identified a gap in the marketplace for smaller footprint, modest starter homes. We know that we can’t tackle the housing crisis completely, but we can do our part to get more units online at a price which is affordable to working families in Erie County. I thank our partners in the City of Buffalo, including Mayor Chris Scanlon, BENLIC, and Buffalo Construction Consultants for the two years of hard work, negotiation, and collaboration that brought this project to fruition. And this is only the beginning!”
First announced by Poloncarz at his 2023 State of the County address, Erie County allocated $13.5 million in American Rescue Plan (“ARPA”) funding for the construction of single-family homes across the County with a focus on the City of Buffalo. The City of Buffalo then joined with a commitment of $10 million of their ARPA funds; Mayor Scanlon has since committed an additional $1 million towards this initiative for a total investment of $24.5 million, with a $1 million Empire State Development (“ESD”) infrastructure grant still pending. Construction for the City of Buffalo portion of this join initiative is being led by Buffalo Construction Consultants.
City of Buffalo Mayor Christopher P. Scanlon said, "Today is a proud day for the City of Buffalo and a bold step forward in how we invest in our neighborhoods. Thanks to the partnership between my administration, Erie County Executive Mark Poloncarz, BENLIC, and our dedicated project team, we’re launching the largest infill housing program our city has seen in decades—transforming 47 city-owned vacant lots into new, affordable, single-family homes across Buffalo. These homes are about more than construction—they represent stability, opportunity, and a path to generational wealth for families across our city.”
The 47 new homes represent Phase I of this initiative and will all be constructed in Buffalo. Twenty-two 3-bedroom, ~1,485 sq. foot stick-built homes will be designed by HHL Architecture; thirteen 3-bedroom, ~1,250 sq. foot modular homes will be built by Champion Homes; and twelve 2-bedroom, ~1,000 sq. foot modular homes will also be built by Champion Homes.
Homes will be sold to those with household incomes up to 300% of the Federal Poverty Level, and the amount scales based on household size. Phase 1 homes are being built in Ken-Bailey, University Heights, Old First Ward, Lower West Side, Black Rock, and Riverside neighborhoods.
Erie County’s ARPA funds will be protected and safeguarded with a lien on the property after the closing with the new owner of each home, while the County’s subsidy amount will vary based on the new home buyer’s income and other mortgage lending factors.
For example, the purchase subsidy amount from Erie County ARPA funds will be in the amount of the difference between the construction cost of the home and the mortgage amount the new buyer can obtain. The new home buyer’s monthly mortgage and estimated utility costs will not be more than 30% of the buyer’s gross monthly income.
An example of this would be:
- Construction cost of new home: $325,000
- Mortgage amount for new buyer: $175,000
- Erie County purchase subsidy: $150,000
The purchase subsidy amount will be held on the property as a lien to protect the County’s interest in these funds going forward. The lien will be in place to ensure that if the home buyer were to sell the property, a percentage of the County’s ARPA funds would be returned to the County upon sale. The longer the new buyer remains in the home the lower the amount that they would owe Erie County when they sell the home.
The lien language safeguards these Erie County funds especially in the possible situation where a home buyer sells the home in a short period of time after becoming the owner.
“This is a unique program, and there has been a lot to evaluate to ensure that we’re getting it right. We’re taking a blended approach to construction, utilizing both traditional stick-built and modular construction, to benefit the schedule and budget,” said Buffalo Construction Consultants Senior VP Peter Dechert. “The entire team has been working hard during the planning phase and now that the construction phase has started, it’s exciting. Any time that we get a chance to work on something innovative and impactful for the people of Buffalo and Erie County, we’re thrilled.”
“I am proud of the collaborative, hands-on work the BENLIC board has done in concert with BENLIC staff and our County and City funders to advance this project,” said Erie County Director of Real Property Tax Services and BENLIC Chair Scott Bylewski. “BENLIC is firing on all cylinders, and this is an important day for the City of Buffalo and Erie County.”
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