60 studio apartments will serve low-income individuals and HASA clients in New York City
THE BRONX, NEW YORK – May 20, 2015 – (RealEstateRama) — New York City-based nonprofit organization The Doe Fund were joined by the New York City Department of Housing Preservation and Development (HPD) and development partners today to announce plans for a new 60-unit development located at 1420 Crotona Park East in The Bronx. The soon-to-be constructed eight-story development will include a total of 60 supportive, affordable housing units of which, 36 apartments will be reserved for clients of the city’s HIV/AIDS Services Administration (HASA). Citi Community Capital, a leading investor in developing communities and neighborhoods, has financed construction. This project will join the existing portfolio of supportive and affordable housing developments operated by The Doe Fund throughout New York City.
“The security of knowing where you will sleep at night is unfortunately not a given for too many New Yorkers,” said HPD Commissioner Vicki Been. “The city is committed to do more to finance the creation of new, supportive, and affordable housing opportunities for the most vulnerable among us. I am proud that HPD’s partnership with The Doe Fund will make possible this new 60 unit, high quality supportive housing development. Thanks to The Doe Fund, HASA, Citibank, and all of our development partners, soon 60 individuals will begin and end each day knowing they have a safe, secure place to call home.”
“Affordable and supportive housing is one of the most important tools we have to combat and prevent poverty in New York City. Our partners in the city government and the private sector recognize that and we are all so proud to answer the Mayor’s call for more affordable, safe, and accessible apartments for New Yorkers.” said George T. McDonald, founder and president of The Doe Fund. “When we invest in areas like Crotona Park, not only are the lives of residents uplifted, whole communities rise, as well,” he continued, referring to a 2008 Furman Center study which showed that new supportive housing developments increase the property values of surrounding neighborhoods and communities.
All units in this development are planned to serve extremely low-income singles earning no more than $18,150 annually. These units are to be filled via referrals. The project will benefit from Project-Based Section 8 Vouchers that will subsidize rents for these tenants. All tenants will pay only 30% of their income toward rent. The income restriction on this development is set according to the U.S. Department of Housing and Urban Development’s (HUD) 2015 calculations.
The project has a NY/NY III services contract from the New York City HIV/AIDS Services Administration (HASA) for the 36 of the total 60 units. This contract will enable the Doe Fund to provide onsite services such as comprehensive case management services, linkages to health care services, and other services as needed such as job preparedness skills, employment training, and drug/alcohol prevention services.
In addition residence will include community and common spaces, a landscaped courtyard and garden, and 24-hour professionally staffed security.
The total development cost of the 1420 Crotona Park East project is approximately $21 million. Citibank acted as the lender in this financing deal and provided a $16 million bank loan toward construction financing and a $5 million bank loan toward permanent financing. HPD provided low-income housing tax credits to the development which will generate $13.9 million in tax credit equity toward permanent financing. The project also benefitted from $2 million in HOME Funds toward permanent financing.
The Crotona Park East development will be complete by December 2016.
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About the New York City Department of Housing Preservation and Development (HPD):
HPD is the nation’s largest municipal housing preservation and development agency. Its mission is to promote quality housing and viable neighborhoods for New Yorkers through education, outreach, loan and development programs, and enforcement of housing quality standards. HPD is tasked with fulfilling Mayor de Blasio’s Housing New York: A Five-Borough Ten-Year Plan to build and preserve 200,000 affordable units for New Yorkers at the very lowest incomes to those in the middle class. For more information visit www.nyc.gov/hpd and for regular updates on HPD news and services, connect with us via www.facebook.com/nychpd and www.twitter.com/nychousing.
About The Doe Fund:
Founded in 1985 by homeless advocate George T. McDonald, The Doe Fund provides life-transforming services; supportive, affordable, and transitional housing; and economic opportunity to low income individuals, formerly homeless and incarcerated men, disenfranchised youth, and people living with AIDS.
Throughout New York City, the organization’s network of supportive and affordable housing units provides accessible, safe, modern housing and supportive services for hundreds of people in need. Through its pioneering work in social enterprise, including the nationally replicated Ready, Willing & Able transitional work program, The Doe Fund reduces recidivism, improves the quality of life in city neighborhoods, and fosters permanent economic independence and self-sufficiency among its clients.
In its 30 year history, the organization has served over 22,000 individuals. Visit www.doe.org and blog.doe.org to learn more.
CONTACT: Juliet Morris (HPD), 212-863-5682, morrisj (at) hpd.nyc (dot) gov
Alexander Horwitz (The Doe Fund), 646-672-4236, ahorwitz (at) doe (dot) org
