FOR IMMEDIATE RELEASE May 4, 2012
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NYCHA, HPD, Bronx Pro Group, Services for the Underserved, Chase and Enterprise Break Ground On New Energy Efficient Affordable and Supportive Housing Development
First Transaction of Its Kind with NYCHA on Privately-Owned Land
Bronx, NY – The New York City Housing Authority (NYCHA), New York City Department of Housing Preservation and Development (HPD), Bronx Pro Group LLC, Services for the UnderServed (SUS), Chase, and Enterprise today celebrated the groundbreaking of 1070 Washington Avenue in the Morrisania section of the Bronx. The new 49-unit development will be energy efficient and affordable housing with on-site supportive services for special needs residents, including veterans. Twenty-one of the units in this federally-funded building will be NYCHA public housing units, making 1070 Washington the first transaction of its kind with NYCHA on privately-owned land.
“The New York City Housing Authority is pleased to be part of this important partnership with Bronx Pro Group LLC, HPD, Services for the UnderServed (SUS), and Enterprise in creating this new affordable housing development that will feature 21 public housing units,“ said NYCHA Chairman John B. Rhea. “This effort is part of NYCHA’s future-planning as detailed in Plan NYCHA to create and implement a clear, long-term development strategy for the entire NYCHA portfolio, including all land and development assets that could potentially accommodate new housing, leading to financial return, socio-economic impact and sustainability. “
“This building is emblematic of the legacy we want to leave to our fellow New Yorkers: a more affordable, sustainable and caring City. The combination of supportive, public and private affordable housing in a single development forms the basis of a dynamic, centered community,“ said HPD Commissioner Mathew M. Wambua. “Each of our partners in this development has a proven track record of working to provide high-quality affordable housing in neighborhoods that have suffered through cycles of disinvestment and out-and-out poverty. The new building at 1070 Washington Avenue represents the best of innovative finance, dealmaking and green technologies that will culminate in a new beginning for its residents, whether they are coming from NYCHA developments, other privately held housing, or are veterans in need of services. “
The development at 1070 Washington Avenue is under construction through Mayor Michael R. Bloomberg’s New Housing Marketplace Plan (NHMP). Launched in 2003, the NHMP is a multibillion dollar initiative intended to finance 165,000 units of affordable housing for half a million New Yorkers by the close of the 2014 fiscal year. To date, the NHMP has funded the creation or preservation of more than 130,606 units of affordable housing across the five boroughs. More than 40,200 units have been financed in the Bronx with more than 6,270 units in Community Board 3 where 1070 Washington Avenue is located.
The construction of new public housing units is made possible through NYCHA’s Replacement Housing Factor (RHF) funds. RHF funds are public housing capital dollars allocated by NYCHA for the development of new public housing units. Public housing authorities, such as NYCHA, receive RHF funds from the US Department of Housing and Urban Development (HUD) when they dispose of, or demolish public housing stock. This funding encourages the construction of new public housing units to replace those lost units. RHF funding will make 1070 Washington Avenue a mixed-use development with affordable housing that includes public housing and supportive housing units.
“Bronx Pro is excited to continue partnering with NYCHA, HPD, Enterprise and Chase on innovative projects employing unique financing tools. It took a creative effort by all of our partners to see this project to construction closing, and we are proud to be providing 21 public housing units to the Morrisania community,“ said Peter Magistro, Founder, Bronx Pro Group. “The development at1070 Washington is a great model for future projects. It provides a permanent affordable housing solution that will house some of New York City’s most vulnerable populations.“
Located at 1070 Washington Avenue, the 49-unit, low-income development will have 21 public housing units set aside for NYCHA’s public housing applicants. These units will be rented to families currently on the NYCHA waiting list. The Authority will provide operating deficit subsidies for the public housing units. The 1070 Washington Avenue development also will total over 50,000 square feet of affordable housing including 16 studios, 11 one-bedroom units, 20 two-bedroom units, and one three-bedroom unit. Units will be available to families and individuals earning at or below 60 percent of the Area Medium Income (AMI), or $49,080 for a family of four.
Ten units in the development will have a preference for populations with special needs and veterans who require supportive services. The studio units will be designed as accessible for either mobility or the hearing impaired. These units will be rented to those earning $23,240 or below. Services for the UnderServed (SUS), a not-for-profit partner of the development team that specializes in working with high-risk and high-need populations with multiple service needs, will provide support services. Support services will include counseling, employment guidance, among other services. On-site supportive services will be available to residents through NYNY III financing. Finally, one unit will be set aside for an on-site superintendent.
“These affordable homes will be a welcome addition to a Bronx neighborhood transformed by community revitalization – the result of a collective commitment by terrific agency partners, investors, and developers like Bronx Pro to make New York a better place to live,“ said Abby Jo Sigal, Vice President and New York Market Leader, Enterprise. “ 1070 Washington is creating more healthy, affordable homes in this thriving community, and rethinking how we build public housing. What an example of the power of partnerships that makes our communities stronger!“
“SUS is proud to be able to add to the revitalization of this community and to bring affordable housing at a time when housing in New York City is so difficult to access,” added Yves Ades, Ph.D., Chief Operating Officer, Services for the UnderServed.
“As New York’s largest bank, we are committed to investing in projects that have a positive and sustainable impact on communities where we do business,” said Jane Silverman, senior banker for Chase Community Development Banking. “1070 Washington will bring much-needed environmentally-friendly affordable housing to the Morrisania neighborhood.”
HPD requires all new developments and those undergoing substantial renovation to meet the Enterprise Green Communities criteria. Capital provided by the Bronx Borough President’s office will allow the development to use the latest green technology to meet this goal and reach LEED for Homes Gold certification. In addition, 1070 Washington Avenue will be in compliance with ENERGY STAR certification through participation in NYSERDA’s Multifamily Performance Program (MPP). In all, 1070 Washington is expected to perform 20 percent more efficiently than a standard building, a five percent improvement over Enterprise Green Communities, LEED for Homes, and MPP’s mandatory threshold.
Among the green technologies to be employed are a robust envelope design comprised of both exterior and interior cavity insulation, ample roof insulation, fiberglass windows, 90 percent efficient condensing boilers; high efficiency PTACs; rooftop solar thermal installation; and super-insulated tanks to store preheated water. In addition, the building will feature low-flow, high quality plumbing fixtures; high-efficiency fluorescent lighting with occupancy sensors to reduce electricity consumption; rooftop fans; and low VOC (Volatile Organic Compounds) paints, primers, adhesives, and sealants. All site landscaping will be drought-tolerant and non-invasive. Light-colored site pavers and an ENERGY STAR-compliant, highly reflective roofing capsheet will be installed to reduce heat island effect. The remaining portion of the roof will be a landscaped garden space.
The total development cost for this 7-story building is approximately $21.7 million. NYCHA is contributing $4.7 million from its Replacement Housing Factor (RHF) funds. HPD has provided a $3.4 million HOME loan, and also allocated about $1.1 million in funding through the Neighborhood Stabilization Program (NSP). This fund was created by HUD to fund projects in neighborhoods most affected by foreclosures and undeveloped, vacant parcels of land. The development of this formerly vacant lot moves forward HUD’s goal of neighborhood stabilization. The Bronx Borough Presidents’ Office is providing $575,000 in City Capital dollars. Enterprise has raised $12.5 million in Low Income Housing Tax Credit equity, sourced by JP Morgan Chase through HPD. JP Morgan Chase is providing the $6 million construction loan. The 1070 Washington development is currently slated for completion at the end of 2013.
Leasing is scheduled to begin in March 2013; to apply for these units, prospective tenants must submit an application to the housing lottery. Applications will be handled on a first-come, first-serve basis. Qualified applicants will be required to meet income guidelines and additional selection criteria. For information on how to apply for this and other affordable housing developments, prospective tenants may visit the ‘Apartment Seekers’ section of the HPD website.# # #