Tax-exempt bonds and Low-Income Housing Tax Credits will make possible 692 affordable homes

The City has leveraged $3.64 billion in LIHTC and $4.73 billion in tax-exempt bonds towards 62,513 units since the start of Housing New York
Permanent affordability will be locked in for 135 new affordable homes across the Bronx and Manhattan

New York, NY – The New York City Housing Development Corporation (HDC) and New York City Department of Housing Preservation and Development (HPD) completed the financing of four new affordable housing developments made possible through the use of tax-exempt bonds and federal Low-Income Housing Tax Credits (LIHTC). Leveraging critical federal programs, these four projects will lead to the creation of 692 new affordable homes in the Bronx and Manhattan, which will be enough housing for more than 1,700 New Yorkers. Permanent affordability will be extended to 135 of the newly constructed units. To help combat the City’s homeless crisis, 144 units across the four developments will be set aside to serve formerly homeless households.

“Building affordable housing on this scale requires us to use all our tools. These new developments bring 692 affordable homes to the Bronx and Manhattan, providing stability and economic opportunity for New York City families,” said HPD Commissioner Maria Torres-Springer. “These projects cast a bright light on the critical role that federal programs play in building a more affordable city. As the budget takes shape in Washington, HPD will continue to fight for the resources we need to continue our work serving hard-working New York families. I would like to thank our team at HPD and HDC, the elected officials who represent these communities, and our development partners who share our commitment to Housing New York.”

“The financing for these 692 newly constructed homes would not be possible without Low-Income Housing Tax Credits and tax-exempt bonds, reinforcing the importance of not just sustaining, but maximizing the federal programs that support affordable housing development throughout New York City,” said NYC HDC President Eric Enderlin. “Thanks to these valuable tools, and the contributions of our many dedicated partners, more than 1,700 low-income and formerly homeless New Yorkers will benefit immeasurably from the security of an affordable home.”

City agencies contributed over $200 million in financing to the four projects. HPD provided more than $51 million in City capital subsidy, including $25 million from the HPD Our Space program, funding dedicated to new housing for formerly homeless households. HDC provided more than $111 million in tax-exempt bond financing thanks to coordination of volume cap with State and Federal partners, and over $45 million in subsidy from its corporate reserves. In addition, nearly $107 million in financing came from LIHTC, an important federal tax credit resource that finances nearly 90 percent of all affordable housing construction nationwide. This housing further advances the Mayor’s Housing New York plan to create and preserve 200,000 affordable homes over ten years. To date, the City has financed the creation and preservation of 62,513 units under the housing plan, leveraging nearly $3.64 billion in LIHTC and $4.73 billion in tax exempt bonds.

The four recently financed affordable housing developments include The Gilbert, located at 1918 1st Avenue in Manhattan, and three projects in the Bronx, including Martin Luther King Plaza, located at 869 East 147th Street, Compass V Residences, located at 1903 West Farms Road, and Morris II Apartments, located at 2956 Park Avenue.

The Gilbert will bring 153 units of mixed-income housing to the East Harlem neighborhood of Manhattan. The City Council provided $3 million in Reso A Funds towards this project, which was financed under HPD and HDC’s Mix & Match program. SKA Marin will develop the site on City-owned land under a 99-year ground sublease from NYC Health + Hospitals Corporation. In coordination with NYCHA, 8 of the units will receive Section 8 project-based vouchers and will be set aside for individuals on the NYCHA housing waitlist.

“I am proud that the Gilbert and the MLK Plaza developments will be financed in my district and will directly benefit the El Barrio/East Harlem and Mott Haven communities. The Council’s priority has always been to support the creation and preservation of affordable housing in our neighborhoods,” said New York City Council Speaker Melissa Mark-Viverito. “That is why I supported the East 147th Street rezoning and why the Council allocated $3 million in funding for the Gilbert and $500,000 in funding to MLK Plaza, helping make these affordable units a reality. I will continue to work with my colleagues on the Council to prioritize the housing security and wellbeing of all New Yorkers.”

“Access to affordable housing is a need and a right. These four projects will expand access to affordable housing for hundreds of families in the Bronx where this type of housing is desperately needed. I applaud Mayor de Blasio for putting so much effort into the successful completion of these four buildings and his efforts to make access to affordable housing a priority over the next ten years. Everyone in New York City should have a place to call home regardless of their socio-economic background,” said US Congressman José E. Serrano.

US Congressman Adriano Espaillat said, “I commend the New York City Housing Development Corporation and New York City Department of Housing Preservation and Development for today’s announcement to finance new affordable housing developments, including the Gilbert development, which will provide affordable housing for district residents. Housing is one of our most critical needs as a society, and we must be deliberate in our efforts to ensure affordable housing for New York families as a foundation of our continued viability and future growth.”

Martin Luther King Plaza, in the Mott Haven neighborhood of the Bronx, is one of the first projects to be financed under the City’s Mandatory Inclusionary Housing program (MIH) and will include 166 units of affordable housing, with 67 permanently affordable units – 46 of which are made possible through MIH. Bronx Borough President Ruben Diaz Jr. and City Council Speaker Melissa Mark-Viverito each committed $500,000, or a combined total of $1million, in Reso A funding to this project. The development of this site was made possible following approval by the Department of City Planning (DCP), in coordination with Bronx Community Board 1 and the Bronx Borough President, of a rezoning application submitted by Radson Development through the City’s Uniform Land Use Review Procedure (ULURP).

“These are exciting new developments that will help to provide hundreds of Bronx families with new apartments,” said Council Member Rafael Salamanca, Jr. “With these buildings, were continuing to move the Bronx forward.”

“Radson Development is proud to be one of the first developers to successfully complete financing under the new MIH program and to also receive financing under the City’s ELLA and Our Space programs. Thanks to HPD, HDC, DCP, and DOB, as well as the support of BP Diaz and Speaker Mark-Viverito, we are able to bring exceptional housing to low-income and formerly homeless residents of New York,” said Dan Rad, Principal, Radson Development. We are also thrilled to bring Magnusson Architecture and Planning’s beautiful, innovative design to life and to provide a landmark building for the Mott Haven community.”

Compass V Residences is the third-phase of the six-phased Compass Residences development that will ultimately include a total of ten buildings and 1,325 units of affordable housing in the Crotona Park East section of the Bronx. Compass V will have a total of 217 units of low-income housing, 45 of which will be permanently affordable. This project brings 4,705 square feet of much needed commercial space to a former underutilized industrial area that was rezoned in 2011 by DCP in order to create a mixed-use residential community. Compass V will be co-developed by Monadnock Development, Signature Urban Properties, and non-profit Samaritan Daytop Village, which will also provide supportive services to the building’s formerly homeless residents.

“The Gilbert, MLK Plaza, Compass V Residences and The Morris II are testaments of the hard work we are putting in to make sure everyone has a chance at new affordable housing,” said Bronx Borough President Ruben Diaz Jr. “Since 2009, we have invested $1.6 billion towards the creation of over 6,100 affordable units across 68 projects, mostly for low-income families, including $1.5 million for these complexes. The development of these sites will not only provide much-needed housing, but will also help alleviate the ongoing homeless issue by creating homes for those who need them”

“We are thrilled to see Compass V moving forward, and, with our partners Signature Urban Properties and Samaritan Daytop Village, we are excited to be transforming this industrial zone into much-needed affordable housing. We are grateful to the City, HDC, and HPD for their foresight and partnership in making this possible,” said Nick Lembo, President of Monadnock Development.

The Morris II development is the second phase of the Morris Apartments project developed by Omni New York. Morris Apartments is built on formerly City-owned land in the Melrose neighborhood of the Bronx. The Morris II development will provide 153 units of housing to low-income New Yorkers and 4,000 square feet of community facility space. Morris II is designed to PHIUS passive building design standards and is currently one of the largest affordable PHIUS passive house developments under construction in the United States. Future residents of Morris II will also benefit from additional energy efficiencies of a Co-gen system. Thirty percent of the units in the building are set-aside for formerly homeless households, 23 of which will be permanently affordable.

“I am sure that we are all aware of the homeless crisis that plagues the area of the South Bronx as well as the rest of New York City. Housing is a necessity and providing more substantial stable housing to New York City residents is crucial to sustaining a quality of life that we should all have. I am very grateful for the opportunity presented to the people of our community by HDC and HPD,” said Assemblywoman Carmen E. Arroyo.

“We want to thank NYC HDC, NYC HPD, BofA and all our financing partners for making it possible to begin the construction on one of the largest affordable passive house designed building in the US,” said Eugene Schneur, Managing Director of Omni New York.