NEW YORK – June 12, 2008 – The boards of the New York State Housing Finance Agency (HFA) and the New York State Affordable Housing Corporation (AHC) have approved nearly $719 million in financing to create and preserve 1,802 units of affordable housing in New York City.
Among the projects receiving financing are the first three multifamily 80/20 rental projects to be approved under HFA’s new 2008 allocation criteria for private activity tax-exempt bond financing, also known as “volume cap.”
These multifamily developments must agree to set aside 20% of the units for low-income tenants and also satisfy several other criteria, including construction and finance readiness, compliance with New York City planning goals and commitment to energy efficiency.
HFA revised its 80/20 volume cap criteria in January because demand for tax-exempt bonds greatly exceeds the amount of volume cap authority available to New York State under Federal law. The bonding authority approved today will be spread over the next three years as the developments are built.
HFA also approved financing for major renovations at two Mitchell Lama projects in the city under the agency’s Mitchell Lama Rehabilitation and Preservation (RAP) program. Under this program, which is designed to protect Mitchell Lama tenants, owners receive renovation financing and agree to keep rents affordable for the next 40 years.
“The financings we approved demonstrate the great diversity of housing in New York City,” said Priscilla Almodovar, President and Chief Executive Officer of AHC and HFA. “Whether it’s financing market rate housing in Manhattan, providing for affordable co-ops in Brooklyn or preserving Mitchell Lama projects in Queens, ‘nyhomes’ is supporting the wide of variety of housing needs demanded by the city’s residents.”
The projects approved are listed below by borough:
HFA, which finances the creation and preservation of affordable multifamily housing, approved three projects in Manhattan:
- 505 West 37th Street, an 80/20 project in the Hudson Yards district, will receive $390 million in financing to build two apartment towers with 835 units, of which 168 will be reserved for low-income tenants. The borrower will be Midtown West B LLC, whose principals are the principals of Rockrose Development Corp.
- 350 West 37th Street Apartments, a second 80/20 project in Hudson Yards, will received $94.5 million in financing. The project will be a 27-story apartment house with 207 units, of which 42 will be reserved for low-income tenants. The borrower will be Tower 37 LLC, affiliate of Lalezarian Developers Inc.
- Colon Plaza Apartments will receive a $8.3 million mortgage from HFA to build a 55-unit rental development at 53-37 East 115th Street in East Harlem. The project will also receive a $2.255 million HFA second mortgage, an annual allocation of $637,928 in Federal Low Income Housing Tax Credits and other subsidies from the NYS Housing Trust Fund Corporation, the NYC Department of Housing Preservation and Development (HPD) and the Manhattan borough president’s office. The borrower, Colon Plaza LP, is controlled by Horsford & Poteat Realty and the 116th Street Block Association. All of the units will be affordable and 11 will be set aside for formerly homeless tenants.
AHC approved two grants to the Housing Partnership Development Corporation in Manhattan:
- $590,000 to finance construction of 17 co-ops at 1885 Lexington Avenue in East Harlem. The units will be part of a seven-story building. Additional financial assistance is being provided by HPD, the NYC Housing Development Corporation (HDC), the Manhattan borough president’s office and the City Council.
- $440,000 to finance construction of 11 co-ops at 1820 Madison Avenue in East Harlem. The units will be part of a seven-story building. Additional financial assistance is being provided by HPD and HDC.
HFA approved two financings in Brooklyn:
- 80 DeKalb Avenue, an 80/20 project in the Fort Greene neighborhood near downtown Brooklyn, will receive $137 million in financing for a 34-story building with 365 units, of which 73 will be reserved for low-income tenants. The borrower will be FC 80 DeKalb Associates LLC, whose principals include Bruce C. Ratner, chairman of Forest City Ratner Companies.
- The 558-unit Shore Hill Apartments, a Mitchell Lama in Bay Ridge, will receive $41 million in financing for major capital improvements. The project will receive an annual allocation of $2.4 million in Federal Low Income Housing Tax Credits, project-based Section 8 subsidies and a property tax abatement from New York City. The project will remain in the Mitchell Lama program and rents for all apartments will remain affordable. The tenants will not need to relocate from their apartments during the renovations.
AHC approved four grants to the Housing Partnership Development Corporation in Brooklyn:
- $485,000 to finance the renovation of a former police precinct building into a three-story co-op with 14 units at 43 Herbert Street in the Greenpoint section. Additional financing will come from HPD and the Brooklyn borough president’s office.
- $425,000 to finance construction of 14 co-ops on several sites on Mermaid Avenue and West 16th Street in Coney Island.
- $425,000 to finance the construction of seven two-family homes in the Ocean Hill/Brownsville section.
• $540,000 to finance construction of six three-family homes in the Bedford-Stuyvesant section.
HFA approved financing for two preservation projects in Queens:
- Baisley Park Gardens, a 210-unit Section 8 project at 125-30 and 120-45 Sutphin Boulevard, will receive a $20 million mortgage for major capital improvements. The project will also receive nearly $1.05 million in annual allocations of Federal Low Income Housing Tax Credits and tax abatement from New York City. Tenants will not need to relocate during the renovations. The borrowers, Omni New York LLC and Alliant Capital Ltd., will purchase the project from the current owners as part of the financing. Section 8 subsidies will contribute to the debt service and nearly all of the units will be reserved for low-income tenants.
- Brookdale Village, a 546-unit Mitchell Lama project at 125 and 135 Beach 19th Street in Far Rockaway, will receive a $15 million mortgage for major capital improvements. The project will also receive an HFA subsidy loan of $5.5 million, project subsidies from the U.S. Department of Housing and Urban Development (HUD) and will continue its tax abatement from New York City. In addition, tenant vouchers and rental assistance payments are expected to continue. Tenants will not need to relocate during the renovations and the project will stay in the Mitchell Lama program.
AHC approved a $2.12 million grant to the Housing Partnership Development Corporation to finance the construction of a seven-story co-op building with 62 units located at Prospect Avenue and Macy Place in the Longwood section of the Bronx. Additional financing will come from HDC, HPD and the Bronx borough president’s office.
The NYS Housing Finance Agency was created in 1960 to sell bonds to finance the construction and rehabilitation of multi-family affordable rental housing in New York State.
AHC, a subsidiary of the HFA, was established in 1985 to promote homeownership by low- and moderate-income households. Financial assistance approved annually by the New York State Legislature, combined with other private and public investment, is used for the construction, acquisition, rehabilitation and improvement of owner-occupied housing.
HFA Contact: Philip Lentz
Director of Communications
plentz (at) nyhomes (dot) org