ALBANY, N.Y. -- A state board authorized $215 million in bonds Wednesday to build two apartment complexes financed through a federal, tax-exempt program to rebuild lower Manhattan.

The Public Authorities Control Board approved bonding of the housing developments, without comment, despite complaints that the projects do not include enough units for lower-income residents.

"Deliberately excluding poor and most middle-income New Yorkers from these apartments is shameful," said Bettina Damiani, spokeswoman for the Liberty Bond Housing Coalition. "Resources earmarked for New York's rebuilding shouldn't benefit only wealthy developers and high-end renters."

The planned projects, bonded through the state Housing Finance Agency (HFA), provide 551 apartments _ 287 units in a 45-story high-rise at 10 Liberty St., in the financial district, and 264 homes in a 24-story building in Battery Park City, next to ground zero.

They are the second and third projects funded through the Liberty Bond program, a congressionally approved plan to use up to $8 billion in tax-exempt bonds to rebuild after the Sept. 11, 2001, terrorist attacks.

Bonding of the first project, a 293-unit apartment complex in Battery Park City, received final state approval Aug. 14.

"We're please that these projects ... have now been approved in a bipartisan, unanimous vote," said Joseph Conway, spokesman for Gov. George Pataki. "These new projects will help rebuild and strengthen New York City and lower Manhattan."

Plans call for 5 percent of the units in each building to cost below market rate, though HFA typically sets aside 20 percent for affordable housing.

Federal legislation did not require a price-range mix for Liberty Bond projects, said HFA spokeswoman Sally Crockett.

"The 5 percent is self-imposed," she said.

Due to the projects' prime location, increasing that percentage would prevent their development, she said.

"This doesn't replace our 80/20 program. We're not doing those in downtown right now, but we are building them all over the city," Crockett said.

Proposed rents for below-market apartments are about $1,700 for one-bedroom apartments and $2,100 for two-bedrooms, according to the Housing Finance Agency. The units otherwise will rent at market rates _ $2,100 per month for a studio and more than $6,000 for a three-bedroom.

The Liberty Bond program designated about $1.6 billion for residential construction, split between the state and New York City. About $460 million in bonding remains available through the state. New York City has not yet approved bonding on its $800 million share.

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http://www.nyhomes.org

http://www.goodjobsny.org/rec_liberty_bonds.htm