NEW YORK, NY – August 12, 2009 – (RealEstateRama) — Today, the New York City Housing Development Corporation (“HDC”) approved $70 million in Residential Revenue tax-exempt bonds. The Bonds will be used by Q Student Residences, LLC, for the purpose of refunding the Corporation’s Residential Revenue Bonds (Queens College Residences). The project was originally financed in April of 2008 and was secured by a direct-pay letter of credit from RBS Citizens. During this time, the Bonds were issued in the amount of $69.8 million to finance the construction of the 144-unit student housing development to be located at 64-80 Kissena Boulevard.
The site is at the southeast corner of the Campus near the intersection of Melbourne Avenue and Reeves Boulevard to the south of Fitzgerald Gym and to the North of Rosenthal Library. The building will include apartments for graduate students, faculty, staff, as well as resident advisors. This newly constructed development will consist of a single building with three, four and five story sections connected by walkways. In total, the buildings will comprise of approximately 155,738 square feet, with an underground garage for about 89 cars. This development will contain 144-units and 506 beds. The Project has reached 90% completion and is expected to receive a temporary certificate of occupancy by September 1, 2009. Students are expected to move in for the Fall semester. The developer of the project, Capstone Development Corporation, is a for-profit developer and operator of student housing. Capstone has developed 68 residential communities totaling over $1.25 billion in investments. The management agent for the Project will be Capstone On-Campus Management, LLC.
The New York City Housing Development Corporation has also approved for the Corporation to purchase a portion of HUD’s Multi-Family Loan Portfolio along with the Department of Housing Preservation and Development (“HPD”), for approximately $6 million; to be funded from HDC’s unrestricted reserves. The purchase of the Portfolio would provide an opportunity for HDC to service the mortgage loans while assisting in the progress of needed repairs on the properties. This program is an important part of Mayor Bloomberg’s New Housing Marketplace Plan, targeting the preservation of government-assisted affordable housing.
New York City has approximately 77,000 units of low- and middle-income housing that were created or assisted by HUD programs in the 1970’s and early 1980’s. These properties fall under an array of programs, including Section 8 New Construction, Section 8 Substantial Rehabilitation, Section 202, Section 236 and FHA loan insurance. A fraction of these units are at risk of physical or financial failure and the City has been addressing problem buildings on a project-by-project basis. The purchase of this Portfolio is a preservation strategy that aims to provide a more organized, timely response to these buildings’ issues. To date, HDC and HPD have preserved over 50 HUD multi-family developments, totaling more than 14,100 units and approximately $845 million in investment.
Lastly, the Board has approved HDC’s use of unrestricted corporate reserves for the purpose of participating jointly with HPD, in the Tax Credit Loan and Reserve Funding Program for approximately $15.9 million. HPD has established the Year 15 Program, through which HPD extends permanent loans and provides additional construction financing where necessary, for projects that previously received federal low income housing tax credits and have passed the required 15-year compliance period.
NYC Department of Housing Development Corporation (HDC)
The New York City Housing Development Corporation (HDC) provides a variety of financing programs for the creation and preservation of multi-family affordable housing throughout the five boroughs of New York City. Our programs are designed to meet the wide-range of affordable housing needs of the City’s economically diverse population.
NYC Department of Housing Preservation and Development (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.
Christina Sanchez, HDC (212) 227-2644