470 New Affordable Units Include 150 Units of Supportive Housing
NEW YORK, Nov. 2, 2007 — The board of the New York State Housing Finance Agency (HFA) yesterday approved nearly $451 million in financing to build 470 new units of affordable housing in New York City. One hundred and fifty of the units will be reserved for supportive housing as part of HFA’s effort to work with other state agencies and to encourage developers to integrate affordable units for residents with special needs in larger housing developments.
HFA approved financing for three projects:
- $23.6 million for the Brook Avenue Apartments in the Bronx, a LEED-certified energy efficient building with 189 affordable units, including 120 that will be reserved for formerly homeless adults living with HIV or AIDS or diagnosed with serious mental illness;
- $22.3 million for the 2271 Washington Avenue Apartments in the Bronx with 117 affordable units, including 30 that will be set aside for the mentally disabled; and
- $405 million for the 42nd Street and 10th Avenue Apartments, a mixed-use development in Manhattan that will include 163 affordable rental apartments.
“HFA’s actions demonstrate our commitment to creating affordable housing units in New York City,” said Priscilla Almodovar, President and Chief Executive Officer of HFA. “I am particularly proud that we were able to work with the State Office of Temporary and Disability Assistance and the State Office of Mental Health to provide supportive housing in the Bronx for homeless and mentally disabled adults in need of government services. This collaboration is unprecedented at the State level and we are hopeful it will set a precedent that will encourage our developers to include supportive housing in their proposals.”
The New York City projects are among 13 approved by HFA and its affiliated agencies that will provide a total of $510 million in financing and grants for affordable housing. The actions will help build and renovate 1,182 affordable housing units across New York State.
With these actions, the agencies have now approved financing to create and preserve 4,739 units of affordable housing in New York State since January 1, 2007.
Brook Avenue Apartments
Brook Avenue Apartments was approved for a $23.6 million mortgage to finance the construction of a 190-unit six-story building at 457-469 East 148th Street in the Mott Haven section of the Bronx. One hundred and twenty of the units will be reserved for supportive housing, including 27 for adults living with HIV or AIDS and 93 for adults diagnosed with serious and persistent mental illness.
All 189 of the affordable units will be reserved for adults with incomes of not more than $34,020 for a family of two. Also, 101 of the units will be reserved for households with incomes up to $28,350 for a family of two.
The developer is Brook Avenue Housing LP, which is controlled by Common Ground Community II Housing Development Fund Corporation with CG-Brook Avenue Housing Corporation as the general partner. Common Ground, a not-for-profit dedicated to fighting homelessness, will partner with Citizen’s Advice Bureau, a Bronx-based service provider, to offer supportive services on site to project residents.
Brook Avenue Apartments is part of the NY/NY III initiative, a city-state program created to reduce homelessness through the development of supportive housing. Rental subsidies will be provided for the 120 supportive housing units by the New York City Department of Health and Mental Hygiene and through the Federal Shelter Plus Care Program.
The project is also a participant in the New York Energy $mart New Construction Program run by the New York State Energy Research and Development Authority (NYSERDA). The program aims to achieve reductions in electric use through energy efficiency. The development will participate in the Leadership in Energy and Environmental Design (LEED) Green Building Rating System and the 6th and 7th floors will have green roofs.
The total cost of the project is $43.6 million. In addition to HFA’s $23.6 million mortgage, Brook Avenue Apartments will receive an annual allocation of $1.7 million in Federal Low-Income Housing Tax Credits; a $14.1 million HOME loan from the New York City Department of Housing, Preservation and Development (HPD); a $3 million loan from HPD’s Housing Opportunities for Persons with AIDS; a $3.5 million loan from the NYS Homeless Assistance Program; a $1.5 million loan from the Federal Home Loan Bank’s Affordable Housing Program; real estate tax exemptions from New York City; and a $500,000 capital loan from the Bronx Borough President.
2271 Washington Avenue Apartments
The 2271 Washington Avenue Apartments was approved for a mortgage of $20 million and a subsidy loan of nearly $2.3 million to finance the construction of a 14-story rental apartment building. The project will be located on Washington Avenue between Fletcher Place and East 183rd Street in the Bathgate section of the Bronx.
All 117 revenue units will be reserved for households with incomes below $42,540 for a family of four. It is anticipated that thirty units will be set aside for adults who are mentally disabled. The New York State Office of Mental Health (OMH) will provide rental subsidies for these tenants and arrange for an outside provider to offer social services to the residents.
The borrower is Belmont Washington LP, which is controlled by The Arker Companies, the developer of the project. The total cost of 2271 Washington Avenue Apartments is more than $33.9 million. In addition to the HFA’s $20 million mortgage and $2.3 million subsidy loan, the project will receive negotiable certificates from the city’s 421-a program of more than $11.5 million; an annual allocation of more than $1.2 million in Federal Low-Income Tax Credits; real estate tax abatements from New York City; and rent subsidies from OMH.
42nd Street and 10th Avenue Apartments
42nd Street and 10th Avenue Apartments was approved for bond financing of $405 million under HFA’s 80/20 Program, in which 20% of the units are set aside for low-income tenants and 80% are rented at market rates. The agency loan will finance the construction of 623 rental units in a 57-story mixed-use development between Tenth and Dyer Avenues and West 42nd and West 41st Streets in Manhattan. One hundred sixty-three of the units will be set aside for low-income households with incomes ranging up to $42,540 for a family of four.
The developer is TRM 42 Associates LLC, which is controlled by The Related Companies, LP; California Urban Investment Partners LLC and Twining Properties.
_____
The NYS Housing Finance Agency was created in 1960 to finance the construction and rehabilitation of multi-family affordable rental housing in New York State.
Contact: Philip Lentz
Director of Communications
212-688-4000 ext. 679
plentz (at) nyhomes (dot) org
