The first two buildings of the Compass Residences development brings 237 new affordable apartments to the Crotona Park East and West Farms neighborhoods of the Bronx
Over 1,300 units of affordable housing and new retail space will be introduced to the area once the entire Compass Residences development is completed
Bronx, New York – New York State Homes and Community Renewal (HCR), the New York City Department of Housing Preservation and Development (HPD) and New York City Housing Development Corporation (HDC), join Monadnock Development, Signature Urban Properties, and GTIS Partners for a ribbon-cutting ceremony to mark the completion of construction of the first two of ten planned buildings at Compass Residences in the Bronx. Project partners also in attendance included MBD, Community Housing Corporation and Dattner Architects.
Compass Residences buildings 1A and 1B are nine- and 15-story buildings, respectively located at 1490 and 1500 Boone Avenue. They have a combined total of 237 apartments affordable to low- and moderate-income households in 247,665 square feet of residential space. The buildings also feature 4,932 square feet of retail space, 71 parking spaces, a shared courtyard, and a public plaza.
New York State Homes and Community Renewal Commissioner James S. Rubin said: “This is the first phase of a spectacular development that has been years in the planning. When it is complete, these two new buildings will stand alongside eight others – incorporating a new school, open space, retail and job opportunities, and a total of 1,300 new affordable apartments. In keeping with Governor Cuomo’s mission to build and preserve affordable housing in communities across the state, HCR is proud to have worked with the City and the developers to help provide the access to capital that is taking Compass Residences from the drawing board to reality. This is making an enormous difference for the people who will live here, for the neighborhood, The Bronx, and the City as a whole.”
“Today we celebrate the completion of the first two buildings in the notable Compass Residences development. I applaud Monadnock, Signature Development, and all of our partners for creating these beautiful buildings and providing 237 households an opportunity to live in new affordable homes. I want to thank our partners in government at HCR and our sister agency HDC for their commitment to expanding New York City’s housing stock and for working tirelessly with us as we strive to achieve our goal of a more affordable New York for all New Yorkers,” said HPD Commissioner Vicki Been.
“The opening of these two beautiful new buildings with 237 affordable homes represents a new chapter for this underused industrial stretch of the Crotona Park East neighborhood,” said NYC HDC President Eric Enderlin. “This is the first phase of Compass Residences, which when completed will create over 1,300 much-needed affordable homes across ten buildings that will be complemented by retail and public space. I want to congratulate HPD, HCR, Signature Urban Properties, Monadnock, and all our partners as well as our elected officials for bringing this project to fruition and laying the groundwork for a diverse, thriving community.”
“Creating a truly mixed-income neighborhood with retail space, parking, a courtyard and direct access to Starlight Park, as well as setting aside units to expand opportunities for formerly homeless individuals, is very important not just for The Bronx but the entire New York City,” said Bronx Borough President Ruben Diaz Jr. “Today’s ribbon cutting unlocks the first 237 of an over 1,300 unit development that will create a truly mixed-income community and bring transformative change to Crotona Park East and West Farms. And it’s with a great pleasure that I support the development of Compass Residences in The Bronx, and I am proud to have provided $1.3 million in capital funding for construction of these worthy projects that will help improve the lives of many of our must vulnerable residents.”
The first building (1A) includes 110 mixed-income units, including seven studios, 47 one-bedrooms, 51 two-bedrooms and five three-bedrooms. One unit will be reserved for an onsite superintendent. Approximately 27 apartments are affordable to households a minimum annual income of $28,835 for an individual and $37,166 for a household of three. Approximately 40 apartments are affordable to households with a minimum annual income of $34,800 for an individual and $51,120 for a household of three. The remaining 42 apartments are affordable to households with a minimum annual income of $34,800for an individual and $52,389 for a household of three.
The second building (1B) is a 127 unit low-income building with 9 studios, 55 one-bedrooms, 57 two-bedrooms and 6 three-bedrooms. Apartments are affordable to households a minimum annual income of $28,853 for an individual and $37,166 for a household of three. Additionally, there are 25 apartments in this building set-aside for formerly homeless households. Some of these apartments are subsidized by project-based Section 8, LINC and OASAS contracts which allows residents to pay just 30 percent of their income, whatever it may be, towards rent.
“This project has been almost ten years in the making, and we are thrilled to officially make this wonderful affordable housing community open to residents” said Gifford Miller, a principal of Signature Urban Properties. “The community, elected officials and the City have been great advocates throughout the process of planning and building this transformational project, and our partners—Monadnock Development, GTIS Partners, and MBD Housing —have been instrumental in making Compass Residences Development a reality. This ribbon cutting commemorates how proud we are of this project and the work that went into achieving this milestone. We are excited to continue moving forward on the rest of the Compass Residences Development project and continue benefiting this great Bronx community.”
“Today marks an important milestone for the Bronx and New York City, and we are thrilled to be part of the Compass Residences Development project,” said Tom Shapiro, President & CIO of GTIS Partners. “Since the initial stages of planning Compass Residences Development, we have been excited about the benefit it would be for this great community, and we are proud to see it to come to fruition. It is a wonderful opportunity to help transform this industrial location into a vibrant residential community that people will call home.”
Tom Ciano, Vice President and Director of Real Estate Operations at Monadnock Development, said, “The Compass Residences represent the City and State’s commitment to achieving unprecedented affordable housing goals to combat New York City’s affordable housing crisis. We were thrilled to partner with HDC, HPD, HCR, and, of course, our development partners, Signature Urban Partners, GTIS Partners and MBD, on this ambitious initiative. We are very proud of the results for Phase 1, and we look forward to continuing through the next phases and seeing this neighborhood come to life.”
In 2011, the Compass Residences development area underwent the largest private rezoning in Bronx history in order to transform a largely underused industrial region into a ten building, multi-phased, mixed-use, mixed-income development spanning five-acres in the Crotona Park East section of the Bronx. When all phases are complete, Compass Residences will contain over 1,300 affordable residential units, 46,000 square feet of new retail space, two landscaped public spaces, a playground, and the option for a 450-seat elementary school. The development benefits from direct highway and bus access, and is served by the 2, 5 and 6 subway lines.
The combined total development cost for both residential buildings in this first phase is approximately $81.9 million.
The total development cost for 1A is $33.4 million. HCR allocated State Low-Income Housing Tax Credits which provided $4.8 million in equity for the project. HPD provided $1.5 million from the 421a Fund and approximately $6.7 million in City Capital. HDC provided approximately $9.3 million in subsidy from its corporate reserves and $8.2 million in tax-exempt bonds.
The total development cost for 1B is approximately $48.5 million. HDC provided $25 million in tax-exempt bonds toward construction financing and $5.4 million in tax-exempt bonds in permanent financing. HDC also provided $8.2 million in subsidy from its corporate reserves toward permanent financing. Additionally in permanent financing, HCR provided a $2 million loan from the Housing Trust Fund’s Homes for Working Families program. HPD provided $4 million in 421a Funds and $3.6 million in City Capital. The Bronx Borough President provided $1.3 million in Reso A funds and the City Council will provide $2.4 million in Reso A funds. Wells Fargo acted as tax credit investor for both buildings. The New York State Energy Research and Development Authority (NYSERDA) provided approximately $284,400.
“Our goal at Wells Fargo is to support long-term economic growth and improve the quality of life for everyone in our communities. The Compass project is one way that we can meet this goal by providing debt and equity financing for over 200 new, energy efficient, affordable housing units to such deserving New Yorkers. I am proud of being a small part of revitalizing a former industrial neighborhood into a vibrant new residential community, and preserving the economic diversity of the Bronx” said Page Travelstead, Vice President, Wells Fargo Bank. “We are honored to be a part of the team with Monadnock Development and Construction, Signature, MBD Housing, HPD, HDC, NYSERDA, HCR and everyone else who worked on this remarkable project.”
About New York State Homes and Community Renewal (HCR)
New York State Homes and Community Renewal (HCR) includes the Affordable Housing Corporation, the Division of Housing and Community Renewal, the Housing Finance Agency, State of New York Mortgage Agency, Housing Trust Fund Corporation and others. 2016 marks the fourth year of Governor Cuomo’s $1 billion statewide House NY program, whose goal is to create or preserve 14,300 affordable units by 2018. In 2015, HCR set a record for financing the creation or preservation of more than 11,000 affordable homes and apartments and was the #1 bond issuer in the nation with $2.5 billion issued. The agency stands ready to make good on the Governor’s new $10 billion 100,000 unit House NY 2020 commitment. For more information on HCR programs and initiatives, please visit: http://www.nyshcr.org/
About The New York City Department of Housing Preservation and Development (HPD)
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: A Five-Borough Ten-Year Plan to create 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 on Facebook, Twitter, and Instagram @NYCHousing.
About The New York City Housing Development Corporation (HDC)
HDC is the nation’s largest municipal Housing Finance Agency and is charged with helping to finance the creation or preservation of affordable housing under Mayor Bill de Blasio’s Housing New York plan. Since 2003, HDC has financed more than 120,000 housing units using over $13.7 billion in bonds, and provided in excess of $1.6 billion in subsidy from corporate reserves. HDC ranks among the nation’s top issuers of mortgage revenue bonds for affordable multi-family housing on Thomson Reuter’s annual list of multi-family bond issuers. In each of the last four consecutive years, HDC’s annual bond issuance has surpassed $1 billion. For additional information, visit: http://www.nychdc.com
About Monadnock Development
Monadnock Development is a leader in developing new models of affordable housing in New York from permanently affordable middle-income cooperatives, to the city’s first micro-unit development, to taking on the city’s toughest rehab projects. Monadnock partners with many of New York’s most respected nonprofits to create dynamic buildings that improve neighborhoods with high-quality apartments, services, and sustainable design. Over the past six years, Monadnock has developed over $1 billion in projects totaling over 2,000 units. For more information, please visit www.monadnockdevelopment.com