New York, N.Y., June 11th, 2008 – The New York City Housing Development Corporation (HDC) today approved $35,265,000.00 million in taxable bonds for the new construction of two cooperative housing apartment buildings in the Bronx and East Harlem.
These two developments will be the first bond issuances under the Corporation’s new Affordable Cooperative Housing Program. Under this program, the Corporation will provide construction loans through the issuance of taxable bonds, and additionally provide low interest second mortgages fund with HDC’s unrestricted reserves. Though income requirements for each building may vary, these apartments are typically reserved for households with incomes up to 175% of the Area Median Income (AMI), $124,075 for a family of four.
The New York City Housing Development Corporation (“HDC”) will issue $8,565,000 in taxable bonds to provide a construction loan to the Prospect Macy Development. The project will consist of the new construction of a twelve-story cooperative housing development located at 853 Macy Place containing 63 residential units in the Longwood section of the Bronx. The Corporation also anticipates using approximately $4,095,000 of unrestricted reserves to fund a subordinate construction loan. This project will include 6 one-bedroom units, 46 two-bedroom units, and 10 three-bedroom units. Residents will also have access to a fitness room and recreation outdoor space. The Prospect Macy co-op will be associated with another HPD-sponsored building financed through the Supportive Housing Loan Program. That building will contain 60 studio apartments for low-income senior citizens and seniors citizens with HIV/AIDS, and is being developed by Comunilife.
The buildings will be located on adjacent lots but will be completely separate buildings with separate financing. Both developments will be constructed in accordance with Energy Star and LEED standards will be submitted for acceptance to the US Green Building Council for certification. The Project will be a mix of one, two and three-bedroom units with a range of affordability: 14 units will be sold to families earning up to 80% of Area Median Income (AMI), and 48 units will be sold to families earning up to 110% of AMI. One unit will be reserved for a superintendent.
The site is City-owned and was awarded to the developer through the New York City Department of Housing Preservation and Development (HPD) Cornerstone program in 2006.
The developer and contractor are entities controlled by Les Bluestone and Avery Seavey of Blue Sea Development Company, LLC. Mr. Bluestone and Mr. Avery are both experienced in affordable housing development in New York City. Blue Sea Development Company’s have been involved in HDC projects in previous positions. On March 27, Blue Sea Development Company closed on the construction financing for the Fox Leggett project, a moderate income co-op a few blocks northwest of the Prospect Macy site.
HDC will issue $26,700,000 in taxable bonds to provide a construction loan to the East Harlem South Development. The project will consist of a 117-unit cooperative housing development to be located at 72-78 East 111th Street in Manhattan. In addition to providing the construction financing, HDC anticipates using approximately $5,655,000 of unrestricted reserves to fund a subordinate construction loan. This newly constructed twelve-story building will include 49 one-bedroom units, 56 two-bedroom units, and 112 three-bedroom units; as well as an estimated 58 parking spaces. The East Harlem South Development will also include an 8,000 square foot community facility space.
The Project is also anticipating funding from the New York City Department of Housing and Preservation and the New York State Affordable Housing Corporation. Of the 117 residential units, 30 of the units will be affordable to households below 80% of median income. The 57 middle income units will be sold to households between 80% and 130% median income. The remaining 29 units will be unrestricted market rate units. One unit will be reserved for a superintendent.
The East Harlem South Development will be developed by Loewen Development, a single entity controlled by Peter Murray and Howard Loewntheill. Loewen has developed over 3,000 residential units in the New York area including projects financed through HDC.
These developments further HDC’s mission of creating affordable housing and provides the creation of long term affordability and homeownership in an area with a few new construction homeownership opportunities.