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NYC Department of Housing Preservation & Development
Press Room

Mayor's Office Press Release # 107-00

FOR IMMEDIATE RELEASE

March 29, 2000

Contacts:
Carol Abrams (HPD): (212) 863-5176
Sunny Mindel / Curt Ritter: (212) 788-2958

MAYOR GIULIANI AND COMMON GROUND COMMUNITY WELCOME
RESIDENTS TO THE NEWLY REHABILITATED PRINCE GEORGE HOTEL

Manhattan's East 28th Street Renovation Creates 416 Apartments for
Lower-Income and Formerly Homeless Tenants

Mayor Rudolph W. Giuliani today re-opened The Prince George Hotel -- in the 1980s was the the City's most notorious welfare hotel -- as a permanent supportive residence for low-income and formerly homeless adults, including those with special needs.

"The Prince George was a once significant factor in the decline of this neighborhood, but today its revival spearheads the turnaround of a key area of Manhattan," said Mayor Giuliani. "New Yorkers are looking forward to it being a City treasure again, and to assisting those in need of housing. The City contributed over $12 million to this project through the Department of Housing Preservation and Development's Supportive Housing Program. Under this program, more than 5,500 apartments for people with special needs have been developed, and nearly 1,200 more are under construction."

Built in the first decade of the 20th Century to provide elegant housing for visitors to the City, the Prince George started to deteriorate and by the 1980s it had fallen victim to physical decay, drug dealing and violence. In 1990, the Prince George was emptied of its families and closed.

Between 1997 and 1999 -- with $42 million in City, State, Federal and private money -- Common Ground Community, a nonprofit housing development and management group, transformed the Prince George Hotel into a majestic single-room-occupancy with efficiency apartments for low-income New Yorkers, formerly homeless individuals, people with AIDS, and the mentally ill.

Rosanne Haggerty, Executive Director of Common Ground, said, "The Prince George offers more than just apartments for the 416 people who live here. It is a place where residents can connect with a vibrant community of support and work to regain independence and stability in their lives through counseling, community events, and job training and placement programs."

In addition, using private funds received through the sale of historic preservation tax credits, Common Ground restored many significant elements of the building, which has been placed on the National Register of Historic Places.

Thanks to the Center for Urban Community Services (CUCS), tenants have access to on-site social, medical and psychiatric services, and receive referrals to community resources. Together with Common Ground, tenants can access an array of community events and spaces within the building, and can participate in job training and placement programs. Qualifying tenants receive rental subsidies from the NYC Department of AIDS Services, the New York State Office of Mental Health, and the U.S. Department of Housing and Urban Development.

The three commercial tenants of the building will be required, as part of their lease, to provide training and employment opportunities to Prince George's residents and other supportive housing tenants from throughout the City.

"I am happy to live here because it's a beautiful building where I feel safe, and the low rent allows me to stay in this neighborhood that I love," said Gloria Gregory, a Prince George resident. "The did a very good job with the renovation. It really feels like home."

PRINCE GEORGE HOTEL - FUNDING SOURCES

CAPITAL FUNDING


NYC Department of Housing Preservation and Development



$ 12.6 million


NYS Office of Mental Health



$ 6.6 million


NYS Department of Social Services
- Homeless Housing Assistance Program

 NYC Department of HousingPreservation and Development
$ 12.6 million
 NYS Office of Mental Health
$ 6.6 million
 NYS Department of Social Services
- Homeless Housing Assistance Program
$ 4.0 million
 Low Income Housing Tax Credits
[syndicated by Lend Lease Real EstateInvestments, Inc.]

- JP Morgan Community Development

$ 9.0 million

- Fannnie Mae

$ 9.0 million
TOTAL DEVELOPMENT BUDGET:$ 41.2 million
[including acquisition,rehabilitation, soft costs, fees, furnishings and equipment, interest on bridge financing,and reserves]

BRIDGE FUNDING

 MetLife
$ 5.0 million
 JP Morgan
$ 1.5 million
 Deutsche Bank
$ 1.5 million
 Corporation for Supportive Housing
$ 300,000

OPERATING AND SOCIAL SERVICES SUBSIDIES

 HUD SRO Moderate Rehabilitation
 HUD Supportive Housing Program
 NYC Human Resources Administration
 Department of AIDS Services andIncome Support
 NYC Department of Mental Health
 NYC Department of HomelessServices SRO Support Subsidy

ARCHITECT

 Beyer, Blinder, Belle

GENERAL CONTRACTOR

 Sciame Construction

 




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