For Immediate Release: December 18, 2018
General HPD Press Contact: hpdmedia@hpd.nyc.gov

 

HPD Announces the Award of $18.1 Million in Tax Credits to Create Nearly 1,000 Affordable Homes Across the Five Boroughs 

The awards reflect the recent expansion of the nine percent Low Income Housing Tax Credits, which generated two additional developments with 100 affordable apartments

 

NEW YORK, NY The New York City Department of Housing Preservation and Development (HPD) Commissioner Maria Torres-Springer today announced the allocation of $18.1 million in housing credits for 13 developments that will create and preserve 1,000 affordable apartments for New Yorkers across the five boroughs.  The amount of Housing Credits allocated by HPD in 2018 represents a substantial increase from last year's awards, thanks in part to a 12.5% increase in 9 percent Credits authorized by Congress. The first expansion of the program in a decade helped HPD finance two additional developments with more than 100 affordable homes. The Consolidated Appropriations Act of 2018 also allows for the option of Income Averaging in the Housing Credit program, which changed the former maximum Area Median Income (AMI) of 60% to an average. Housing Credits can now finance homes for families earning up to 80% AMI, unlocking financing to reach deeper levels of affordability. Four of the developments receiving Housing Credits this year will take advantage of Income Averaging. 

“The Low Income Housing Tax Credit is one of the most important tools we have in this country to create and preserve desperately needed affordable housing,” said Housing Preservation and Development Commissioner Maria Torres-Springer. “Last year, Congress expanded the Housing Credit program for the first time in a decade, demonstrating how important affordable housing is nationwide. We look forward to working with the next Congress to continue this trend so that more New Yorkers, and more Americans have access to quality, affordable homes.” 

Housing credits are an indirect federal subsidy used to finance the development of affordable rental housing for low-income households. Each year, the IRS allocates housing tax credits to designated state agencies, who in turn allocate the credits through a competitive process to projects throughout their state. New York City receives its sub-allocation of tax credits from New York State Homes and Community Renewal, the amount of which is determined and sub-allocated annually by the State.

HPD allocates a portion of the State of New York's federal Low Income Housing Tax Credit authority - both 9 percent competitive credits and 4 percent "as-of-right" credits. During annual funding rounds, developers compete for allocations of 9 percent tax credits. Four percent tax credits are allocated on a rolling basis annually. Once tax credits are allocated to a project, the developer may sell the credits to corporate investors to generate private equity to cover a portion of development costs. This reduces the need for public subsidy. Because the debt is lower, a tax credit property can in turn offer lower, more affordable rents. The investors receive credits that reduce their corporate federal income tax bills for ten years. 

“These developments are a great example of why I have fought tooth and nail in DC to expand and strengthen the federal Low Income Housing Tax Credit after the Republican tax law cut into its value,” said U.S. Senator Charles E. Schumer. “Maintaining access to affordable housing is imperative, and with this essential tool we can ensure that affordable housing will continue to be built and preserved in New York City. It is with great partnership, perseverance, and cooperation from Mayor de Blasio and Commissioner Torres-Springer, that we are able to make such strides in combating the affordable housing crisis.” 

“Affordable housing is vital to the success of families throughout our city. For residents of Northern Manhattan and the Bronx, the addition and preservation of affordable housing is welcome news,” said Rep. Adriano Espaillat (NY-13). “The flexibility of the Low-Income Housing Tax Credit and the commitment by the Department of Housing Preservation and Development to ensure affordable housing for more New Yorkers is a goal and vision that I support and believe will continue to benefit our robust and diverse community for years to come. I am glad New York City is able to take advantage of the programs’ expanded benefits that Congress enacted on a bipartisan basis earlier this year, and I look forward to continuing my push at the federal level to support programs and solutions for our families and our communities.” 

“With affordable housing desperately needed across our city, state and nation, and ways to provide that housing a constant challenge, the Low-Income Housing Tax Credit is an important tool that makes it possible for low-income and homeless families and individuals to have a safe and secure place to live," said Assemblyman Steven Cymbrowitz (D-Brooklyn), Chair of the Assembly's Housing Committee. 

HPD awarded housing credits to ten new construction or adaptive reuse projects and three preservation projects. Of the new construction/adaptive reuse projects, four will be developed with supportive housing set aside to serve formerly homeless families. The recipients of the LIHTC awards for 2018 can be found on the HPD website.

Manhattan:

East Village Homes: This new construction project will be developed by Asian Americans for Equality in Community Board 3 in Manhattan. This project will provide 44 units of affordable housing to the neighborhood.  The annual allocation is approximately $1 million in 2019credits. 

CLOTH Amsterdam: This preservation project will be rehabilitated by Community League of the Heights in Community Board 10 and 12 in Manhattan. This project will provide 58 units of affordable housing to the neighborhood. The annual allocation is approximately $1.2 million in 2019 credits. 

Balton Commons: This new construction project will be developed by Lemor Realty in Community Board 10 in Manhattan. This project will provide 37 units of affordable housing to the neighborhood. The annual allocation is approximately $913,000 in 2019 credits.

Brooklyn: 

FAC Renaissance: This preservation project will be rehabilitated by Fifth Avenue Committee in Community Board 2 and 6 in the Brooklyn. This project will provide 64 units of affordable housing to the neighborhood.  Of those 64 units, 23 will be rented to formerly homeless households. The annual allocation is approximately $403,000 in 2019 credits.

Bronx: 

BK Westchester: This preservation project will be rehabilitated by Banana Kelly in Community Board 2 and 3 in the Bronx. This project will provide 115 units of affordable housing to the neighborhood.  The annual allocation is approximately $686,000 in 2019 credits. 

BP Mapes: This new construction project will be developed by Bronx Pro in Community Board 6 in the Bronx. This project will provide 30 units of affordable housing to the neighborhood. The annual allocation is approximately $1 million in 2019 credits. 

Muller House: This new construction project will be constructed by The Doe Fund in Community Board 12 in the Bronx. This project will provide 90 units of affordable housing to the neighborhood. Of the 90 affordable units, 54 will be rented to formerly homeless households. The annual allocation is approximately $1.3 million in 2019 credits. 

The Bedford: This new construction project will be developed by Housing and Services Inc. in Community Board 7 in the Bronx. This project will provide 107 units of affordable housing to the neighborhood. 66 of the 107 affordable units will be rented to formerly homeless households. The annual allocation is approximately $2.5 million in 2019 credits. 

Woodlawn Senior Living: This new construction project will be developed by RiseBoro Community Partnership in Community Board 12 in the Bronx. This project will provide 80 units of affordable housing to the neighborhood. All 80 units will be rented to senior households. The annual allocation is approximately $1.8 million in 2019 credits.

Queens:

T Building: This project involves the adaptive reuse of an existing building by Dunn Development in Community Board 8 in Queens. This project will provide 202 new units of affordable housing to the neighborhood. Of those 202 units, 75 units will be provided to formerly homeless households. The annual allocation is approximately $3.3 million in 2019 credits. 

Rockaway South:  This new construction project will be developed by The Related Companies in Community Board 14 in Queens. This project will provide 56 units of affordable housing to the neighborhood. All 56 units will be rented to formerly homeless households. The annual allocation is approximately $1.3 million in 2019 credits. 

161-01 89th Avenue: This new construction project will be developed by Transitional Services for New York in Community Board 12 in Queens. This project will provide 70 units of affordable housing to the neighborhood. Of the 70 units, 42 of will be rented to formerly homeless households. The annual allocation is approximately $1.6 million in 2019 credits. 

Staten Island: 

The Castleton:  This new construction project will be developed by The Hudson Companies in Community Board 1 in Staten Island. This project will provide 48 units of affordable housing to the neighborhood.  Of the 48 units, 29 will be rented to formerly homeless households.  The annual allocation is approximately $1.1 million in 2019 credits. 

“We are excited to receive this allocation of Tax Credits to enable the structural repairs, energy efficiency and increased fire safety that will enable some of this valuable affordable housing in Park Slope to remain affordable. We are grateful to HPD for their continued partnership in preserving this important neighborhood resource,” said Jay Marcus, Director of Housing Development for the Fifth Avenue Committee. 

“We are grateful to HPD for this allocation,” says Banana Kelly President Harry DeRienzo.  “Since 2002, we have partnered with HPD, LISC, NEF and local banks (particularly Community Preservation Corporation and Sterling Bank) to rebuild our low income housing portfolio, a portfolio that is critical to our neighborhood.  At a time when rents are escalating in the Bronx, this allocation will allow us to keep rents, currently averaging less than $800/unit, affordable to our residents.  We look forward to getting this project off the ground early in 2019.” 

“RiseBoro looks forward to developing 80 units of much needed affordable housing for seniors in the Woodlawn neighborhood of the Bronx. We are thrilled and excited that this important project was selected for a 9% LIHTC financing. With 200,000 New York City seniors on waiting lists for affordable housing, projects like Woodlawn Senior Housing are more critical than ever,” said Emily Kurtz, Vice President of Housing at RiseBoro Community Partnership 

"Dunn Development Corp. is thrilled to be collaborating with HPD on this important affordable and supportive housing project. The adaptive reuse of the historic T Building will not only create critically needed affordable and supportive housing serving a range of incomes in Queens, but will restore an architectural gem important to the community," said Martin Dunn, President of Dunn Development Corp. 

“TSINY is thrilled to be one of the recipients of HPD’s 2019 allocation of 9% Low Income Housing Tax Credits.  Accessing this funding and partnering with HPD will allow us to quickly and efficiently move forward with much needed affordable housing in the Borough of Queens,” said Dr. Larry Grubler, Chief Executive Officer of Transitional Services for New York, Inc. (TSINY). 

“Hudson is both thrilled and grateful to be working with Project Hospitality and the City of New York to provide more permanent housing to the Port Richmond neighborhood. Nothing says home like one’s own front door and we look forward to providing 48 more front doors in Staten Island in the near future,” said Aaron Koffman, Principal, The Hudson Companies.  

HPD awards housing credits to qualified low-income housing projects in New York City.  To be eligible, developments must be substantial rehabilitation or new construction with at least 20 percent of apartments reserved for low-income households. There are options on how to meet the low-income requirement, including 20% of apartments affordable to households with an annual income not more than 60 percent of Area Median Income (AMI), or $56,340 per year for a family of three earning. Eligible household incomes may be set lower than 60 percent AMI depending on the individual project.

The Consolidated Appropriations Act of 2018 also allows for the option of Income Averaging in the Housing Credit program, which changed the former maximum Area Median Income (AMI) of 60% to an average. Housing Credits can now finance homes for families earning up to 80% AMI, unlocking financing to reach deeper levels of affordability. Four housing developments receiving Housing Credits this year - FAC Renaissance, Woodlawn Senior Living, East Village Homes, and BP Mapes - will utilize Income Averaging.  To date, approximately 85% of all units financed under Housing New York serve low-income New Yorkers making less than 80 percent AMI, of which 40 percent are for New Yorkers making less than 50 percent of AMI or $46,950 for a family of three.
 

These new projects are being developed under Mayor de Blasio’s accelerated and expanded housing plan, Housing New York 2.0, which will finance 300,000 affordable homes by 2026, enough to house the entire population of Boston.

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The New York City Department of Housing Preservation and Development (HPD) is the nation’s largest municipal housing preservation and development agency. Its mission is to promote quality housing and diverse, thriving neighborhoods for New Yorkers through loan and development programs for new affordable housing, preservation of the affordability of the existing housing stock, enforcement of housing quality standards, and educational programs for tenants and building owners. HPD is tasked with fulfilling Mayor de Blasio’s Housing New York Plan which was recently expanded and accelerated through Housing New York 2.0 to complete the initial goal of 200,000 homes two years ahead of schedule—by 2022, and achieve an additional 100,000 homes over the following four years, for a total of 300,000 homes by 2026.  For full details visit www.nyc.gov/hpd and for regular updates on HPD news and services, connect with us on Facebook, Twitter, and Instagram @NYCHousing.