CPC Resources and Banana Kelly Community Improvement Association Transform an Abandoned Property Into Affordable Housing Units
New York, NY – October 2, 2008 – (RealEstateRama) — CPC Resources, Inc. (CPCR) and Banana Kelly Community Improvement Association, joined by the New York City Department of Housing Preservation and Development (HPD) and New York City Housing Development Corporation (HDC) President Marc Jahr, celebrated the grand opening of Banana Kelly Place, a newly constructed affordable housing complex with 58 low-income rental apartments and 5,200 square feet of ground floor space for a future child care facility at 830 Fox Street in the Longwood neighborhood of the South Bronx.
Developed by CPC Resources, the for-profit development arm of The Community Preservation Corporation (CPC), and Banana Kelly Community Improvement Association, a local Bronx non-profit organization using City subsidies from HPD and HDC, the new seven-story building contains 18 one-bedroom and 39 two-bedroom apartments, plus a superintendent’s unit.
“Today, we stand on what was formerly an abandoned property for over 20 years and is now a newly constructed affordable housing development that will be home to 58 hard working families. We can be proud of the steps we have taken to reclaim and rejuvenate our city’s great neighborhoods,” said Michael Lappin, President and CEO of CPC and CPCR. “We thank all of our partners for their dedication and commitment to seeing this project through and helping fulfill our mission of providing affordable housing options to New York City’s families.”
“With a renewed mission of service to the neighborhood and a commitment to working with residents and using our organization to give voice and realization to the concerns and aspirations of those residents, we understand how imperative it is to build quality affordable housing in this area,” added Harry DeRienzo, President, Banana Kelly Community Improvement Association. “We look forward to continuing our work of turning around the South Bronx for both current and future generations and thank CPCR and all our partners for their hard work that helped make this all possible.”
All of the apartments have been made available to families earning no more than 60% of the U.S. Department of Housing and Urban Development Income Limits. (Under income guidelines, an individual could earn no more than $28,350 and a family of four no more than $45,540 to be eligible to live in the apartments.) Additionally, 18 of the units have been set aside for formerly homeless families who will be provided with Section 8 existing certificates or vouchers.
Rents range from $585 for a one-bedroom apartment to $867 for a two-bedroom. The new development also contains 5,200 square feet of ground floor space which will be occupied by a child care facility.
“Just last week in the South Bronx, HPD and Mayor Bloomberg celebrated the funding of more than half of the Mayor’s pledge to preserve and create 165,000 units of affordable housing. More than 27,000 units are either completed or in development right here in the Bronx,” said HPD Commissioner Shaun Donovan. “Together with our partners, like HDC, CPC, Banana Kelly, Chase and our local electeds we can continue this incredible success story and work to ensure that the Bronx remains affordable to longtime residents who have contributed to the borough’s revitalization.”
HDC President Marc Jahr, said “The New York City Housing Development Corporation is pleased to be able to help finance this project.” He added, “Banana Kelly Place represents a milestone in the continued revitalization of the South Bronx. As concerns about affordable housing remain paramount in our city, HDC is responding by financing significant amounts of affordable housing.”
The total development cost was approximately $14 million. The development was financed using $10.7 million of HDC’s tax-exempt bonds and accompanying subsidies available through the City’s Low-income Affordable Housing Marketplace Program, known as LAMP, and federal low income housing credits. The development also received a $1.7 million subsidy through HPD’s Mixed Income Rental Program (MIRP). CPC Resources lent its broad expertise in affordable housing development and oversaw all aspects of the development and construction of the project. During construction, the bonds were backed by a letter of credit from Chase Community Development Banking. A $5.3 million tax credit equity was syndicated through WNC & Associates, Inc.
CPC Resources, Inc. (CPCR) is the for-profit development subsidiary of The Community Preservation Corporation (CPC), a not-for-profit mortgage lender that has financed more than $7 billion of affordable housing since its founding in 1974. CPCR has developed or rehabilitated more than 13,000 units throughout New York State, including Parkchester Apartments in the Bronx, representing an investment of over $600 million in affordable housing.
Banana Kelly Community Improvement Association is a community development corporation founded and governed by community residents to build and manage safe, well-maintained, affordable housing. It creates and operates programs that help residents achieve and sustain self –sufficiency while developing new initiatives in response to the needs identified by the community.
The New York City Department of Housing Preservation and Development’s (HPD) mission is to promote quality housing and viable neighborhoods for New Yorkers. The department is the nation’s largest municipal housing development agency and is implementing Mayor Bloomberg’s New Housing Marketplace Plan to build and preserve 165,000 units of affordable housing. The New Housing Marketplace Plan is the largest municipal affordable housing effort in the nation. HPD also encourages the preservation of affordable housing through education, outreach, loan programs and enforcement of housing quality standards.
The New York City Housing Development Corporation (HDC) is the nation’s number one issuer of bonds for multi-family affordable housing. Established as a public benefit corporation by the State of New York in 1971, HDC is responsible for financing the creation and preservation of affordable housing in New York City. The financing provided by HDC is in the form of low-cost mortgages made through the sale of tax-exempt and taxable bonds. These mortgages are provided to developers for the construction and preservation of affordable housing. In addition, HDC provides second mortgages from its own corporate reserves.
Mike McDermott (HDC) (212) 227-9496