NEW YORK, NY (RealEstateRama) July 23, 2008 – More than $317 million in financing was approved today to build and preserve 278 units of affordable housing in all five boroughs of New York City. The actions were taken by the boards of the New York State Housing Finance Agency (HFA) and its subsidiary, the New York State Affordable Housing Corporation (AHC).
The approvals included $315 million in financing for a multifamily 80/20 rental project in the Hudson Yards section of the Far West Side of Manhattan. This development is the fourth 80/20 project to be approved under HFA’s revised 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.
“These financings demonstrate our commitment to providing a wide range of affordable housing opportunities throughout New York City,” said Priscilla Almodovar, HFA and AHC President and Chief Executive Officer. “Whether it’s building new high-rise rental units, new condos and two-family homes, or renovating existing homes—the Paterson Administration understands that affordable housing that is decent and in good repair makes our communities stronger, businesses healthier and neighborhoods more diverse. That is why we approved these financings today and why the Paterson Administration and the State Legislature made an historic commitment to housing in this year’s budget.”
Hudson Yards
HFA approved up to $315 million in taxable and tax-exempt bonds to finance a 569-unit 80/20 project at 320 West 38th Street in the Hudson Yards section of Manhattan. One hundred and twenty units will be set aside for households with incomes of no more than $38,400 for a family of four. The financing includes $204 million in tax-exempt bonds, which will be sold over three years.
The total cost of the development is $436 million. In addition to the HFA financing, the project will receive an annual allocation of $1.9 million in Federal Low Income Housing Tax Credits and a partial 421-a real estate tax abatement for 12 years with full taxes phased in over the following eight years.
The borrower will be the principals of Glenwood Management Corporation. The project, located between 8th and 9th avenues, consists of two 15-story towers built on a common 9-story base. It will incorporate “green” elements and has been registered for certification by the U.S. Building Council’s Leadership in Energy and Environmental Design (LEED). The project will also include 11,000 square feet of commercial space, a public parking garage and tenant amenities that include a theater, indoor pool, fitness room, outdoor terraces and laundry facilities.
Neighborhood Housing Services
AHC approved a $400,000 grant to the Neighborhood Housing Services of New York City (NHS) to finance home improvements for 85 housing units on sites in the Bronx, Brooklyn, Queens, and Staten Island. Specific neighborhoods targeted include Baychester, Morris Heights and Highbridge in the Bronx; Bedford Stuyvesant and East Flatbush in Brooklyn; and Jamaica, Maspeth and Woodside in Queens.
NHS will provide grants to single and multifamily homes owned by low-income households. Renovations will include repairs to roofs, windows, kitchens, bathrooms, and flooring and electrical, plumbing, and sewer and water main systems. In addition to homeowner grants, NHS will also provide landlord training courses designed to teach skills in physical and financial management. Individual grant awards will be limited to households earning up to $68,824 for a family of four.
NHS currently has a waiting list of homeowners eligible to participate in the program. Additional homeowners will be selected based on eligibility and on a first come-first served basis.
The total cost of the home improvement program will be $700,000. In addition to the AHC grant, the project will be financed with $300,000 in grant funds provided by the NYC Department of Housing Preservation and Development (HPD).
Habitat for Humanity-New York City
AHC approved a $160,000 grant to the Housing Partnership Development Corporation and Habitat for Humanity-New York City to finance the construction of a four-story building with four affordable condos at 215 West 115th Street in Central Harlem in Manhattan.
Future homeowners will work side-by-side with volunteers on the interior construction of their new homes, each of which will be one floor of the building. The project includes an outside recreation area and each unit will contain Energy Star appliances.
The total cost of the project is $2.36 million. In addition to the AHC grant, the project will receive $600,000 in Resolution A funds and $849,999 in subordinated land from HPD, $250,000 from the New York City Council, and $80,000 from the Independence Community Foundation.
New Brooklyn Homes
AHC approved a $1.575 million grant to the Housing Partnership Development Corporation to finance 21 new two-family homes in the Bedford-Stuyvesant and Ocean Hill/Brownsville sections of Brooklyn.
The proposed developer for the project is New Brooklyn Homes, LLC. All of the homes will have an owner’s unit and a rental unit, and will feature Energy Star appliances, energy-efficient lighting systems, insulated windows and doors, backyard planters and “cool” roofs that deflect heat, reducing energy costs. For 14 of the homes, eligible households must have incomes under $68,824 for a family of four. For the other seven homes, households must have incomes under $84,187 for a family of four.
The total cost of the project is $14.1 million. In addition to the AHC grant, the project will receive $2.66 million in subordinated land from HDP and will be financed with the assistance of developer and homeowner equity.
Calvert Madison Associates
AHC approved a $505,000 grant to the Housing Partnership Development Corporation to finance the construction of 27-unit, seven-story co-op apartment building at 1820 Madison Avenue in the East Harlem section of Manhattan.
Thirteen of the units will be set aside for households with affordable incomes. Eleven units will be limited to households with incomes under $68,824 for a family of four. The other two units will be limited to households with incomes up to $84,187 for a family of four.
The proposed co-developers, The Bluestone Organization and Hope Community, Inc., are working together through a joint venture known as Calvert Madison Associates, LLC. The building will be a “green” building, containing architectural and appliance features that comply with the New York State Energy Research and Development Authority (NYSERDA) and LEED standards.
The total cost of the project is nearly $7.5 million. In addition to the AHC grant, the project will receive first and second mortgages for $1.1 million and $657,222 from the NYC Housing Development Corporation; $265,175 in city capital funds; $1.6 million in HOME funds from HPD; $141,559 in Housing Trust Fund monies; $1.36 million in subordinated land from HPD; and $685,556 in sales proceeds from the project’s market rate units.
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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 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.
Contact: Philip Lentz
Director of Communications
212-872-0679
plentz (at) nyhomes (dot) org
