Home Housing & Development HDC Issues $9.2M for New Development in the Heart of Crotona Park

HDC Issues $9.2M for New Development in the Heart of Crotona Park

NEW YORK, NY- June 10, 2009 – (RealEstateRama) – The New York City Housing Development Corporation (HDC), the New York City Department of Housing Preservation and Development (HPD) and Bronx Pro Real Estate Management completed financing for 850 Jennings Street, an eight-story affordable rental apartment building to be constructed in the Crotona Park East section of the Bronx. HDC issued $9.22 million in taxable bonds for the first phase of construction for this new development. The creation of affordable housing in New York City is part of the City’s Five Borough Economic Opportunity Plan to create jobs for New Yorkers today and implement a vision for long-term economic growth while strengthening and stabilizing neighborhoods in all five boroughs.

The building will contain 103 moderate to middle-income units, a 6,080-square-foot community center and 62 parking spaces. Located on the south side of Jennings Street, between Intervale Avenue and Bristow Street, when complete seven studio units, 40 one-bedroom units, 41 two-bedroom units and 14 three-bedroom units will be offered for rent at 80 percent of the Area Median Income. Crotona Park, which includes public swimming pools, ball fields and running and bike paths, is located approximately four blocks west of the development. 850 Jennings will also contain green features, including high efficiency boilers, energy star lighting and appliances, a solar powered hot water system and water sense water fixtures. The construction phase of this development will create 270 jobs total on the site and jobs for the South Bronx.

HDC President Marc JahrHDC President Marc Jahr said: “When complete, 850 Jennings will add substantially to the inventory of affordable homes we have built in the Bronx. It’s been said before, and I am sure it will be said many more times: the investment by the City and its development partners, whether for-profit or not-for-profit, has achieved a remarkable change in this borough. I think we can all be proud of what we’ve accomplished—seeing these homes occupied and these neighborhoods getting stronger gives us reason enough to keep moving forward with the development of affordable housing.”

“The closing on 850 Jennings advances the extraordinary transformation already underway in the Crotona Park East neighborhood,” said HPD Commissioner Cestero. “This closing exemplifies how in these difficult times, we continue to move the Mayor’s housing plan forward, working with our for-profit and not-for-profit partners. Indeed, we are committed as ever to financing the preservation and creation of affordable housing to bring stability to families to their neighborhoods.”

“Financing 850 Jennings was a significant accomplishment given today’s difficult economic climate. It was accomplished through the fortitude and the creativity of all our Public and Private affordable housing partners. Through this project, Bronx Pro will continue building green affordable housing as well as providing professional/caring property management services to New York City residents. Our special thanks HDC and HPD for their perseverance,” said Peter Magistro, President of Bronx Pro Real Estate Management, Inc.

850 Jennings is being developed under HDC’s New HOP program which was created in response to the need of offering affordable housing opportunities to people that make modest, middle-income wages. Typically, apartments created through New HOP are reserved for households earning a range of $53,800 for an individual, up to $134,000 (175% AMI) for a family of four. JP Morgan Chase provided $9,324,493 for the construction phase.

850 Jennings is part of larger-scale change in the Crotona Park East neighborhood. Within a two block radius, other major developments financed under Mayor Bloomberg’s New Housing Marketplace Plan include:
• BlueSea’s Morrisania Homes Partnership homes,
• WHEDCo’s Intervale Green
• 870 Jennings Street
• 1334 Louis Nine Boulevard
• Procida’s Crotona Park East III Partnership homes
• MBD’s Herbert L. Brooks 202 senior citizens housing

About Bronx Pro Real Estate Management
Bronx Pro Real Estate Management, Inc. was formed in 1988. Beginning initially as a property management firm, Bronx Pro has always distinguished itself from other property managers by demonstrating high maintenance standards and a strong respect for its tenants. Its portfolio of managed properties consists primarily of properties owned by partnerships in which Peter and Margaret Magistro, the principals of the company, are involved. Bronx Pro currently manages over 26 multi-family apartment buildings containing over 800 residential and 20 commercial units.

In 1998 the company expanded its business activities to include the development of low and moderate income housing. Beginning first with rehabilitation of occupied city-owned buildings, the company has broadened its scope to include the development of large new construction projects that contain both residential and commercial space. The company has completed more than $140 million of affordable housing projects and currently has over $25 million in construction. Currently the firm has over $30 million worth of projects in various stages of predevelopment.

About HDC
The New York City Housing Development Corporation (HDC) provides a variety of financing programs for the creation and preservation of multi-family housing that meets the wide range of affordable housing needs of the City’s economically diverse population.
In 2008, HDC issued more than $1.3 billion worth of bonds in the calendar year, including approximately $500 million in tax-exempt housing revenue bonds, enabling HDC to finance the construction and/or preservation of 7,371 apartments and making it the nation’s #1 issuer of affordable housing bonds. For more information visit www.nychdc.com

About HPD
HPD’s mission is to promote quality housing and viable neighborhoods for New Yorkers. It is the nation’s largest municipal housing preservation and development agency. Responsible for implementing Mayor Bloomberg’s New Housing Marketplace Plan to build and preserve 165,000 units of affordable housing, HPD also actively promotes the preservation of affordable housing through education, outreach, loan programs and enforcement of housing quality standards. For more information visit www.nyc.gov/hpd.

About New York City’s Five Borough Economic Opportunity Plan
The City’s Five Borough Economic Opportunity Plan is a comprehensive strategy to bring New York City through the current economic downturn as fast as possible. It focuses on three major areas: creating jobs for New Yorkers today, implementing a long-term vision for growing the city’s economy, and building affordable, attractive neighborhoods in every borough. Taken together, the initiatives that the City has launched to achieve these goals will generate thousands of jobs and put New York City on a path to economic recovery and growth. To learn more about the plan, visit www.nyc.gov

Contacts:
Christina Sanchez (HDC), (212)-227-2644, csanchez (at) nychdc (dot) com