FOR IMMEDIATE RELEASE
Tracy Paurowski, NYC HDC (212) 227-9496
Carol Abrams, NYC HPD (212) 863-5176
John Yiannacopoulos, Fleet (212) 819-5927
To request a homeownership kit, call 311.
Click here for HPD's lists of affordable homes
Construction to begin on 182 New and Rehabilitated Apartments in Clinton
-- Creative Financing and Community Partnerships Create and Preserve Affordable Housing in the Clinton Area of Manhattan --
New York, NY, October 1, 2003 - Clinton area community leaders and residents, city housing leaders, elected officials and financiers came together today to mark the commencement of three housing development efforts along a block front in the Clinton Urban Renewal Area. The developments initiated today to begin the transformation of the parcel located directly across Eleventh Avenue from DeWitt Clinton Park includes the construction of an affordable residential building with ground-floor commercial space and the rehabilitation of two existing historically significant structures by community groups making use of government sponsored programs and private and public financing.
Housing Commissioner Jerilyn Perine said, "The work begun here today demonstrates the City's commitment to provide affordable housing opportunities. Mayor Bloomberg's housing plan, 'The New Housing Marketplace: Creating Housing for the Next Generation,' will increase new housing production by 25% compared to the past five years."
The newly constructed building, The Clinton Parkview Apartments at 555 West 52 Street, is the first entirely income restricted development to be built in Clinton since 1981. The sponsor, Clinton Association for a Renewed Environment (C.A.R.E.), is providing $3.7 million of equity to the development as a result of their efficient management and wise investment of cash flow proceeds from the low- income development they were created to manage eighteen years ago. By putting this considerable equity towards the development costs, C.A.R.E was able to leverage additional public and private funds that further enhanced the affordability of the 96 one- and two-bedroom apartments to be included in the finished eleven-story building.
"We are thrilled to have the support of the City of New York and our private partners in developing this desperately-needed affordable housing for our community," stated Mary D'Elia, Chairperson of C.A.R.E.'s Board of Directors. "The HDC and HPD provided constant support and guidance throughout a complicated development period, and we could not have arrived at this point without them."
The New York City Housing Development Corporation (HDC) is providing $12.2 million of construction and permanent loan financing through the corporation's 80/20 tax-exempt bond program. Fleet Bank is providing the letter of credit to secure the bond financing. Unlike a traditional 80/20 development, Clinton Parkview will not include market rate apartments. Instead 70% of the units will be made affordable to households earning less than 60% of Area Median Income ($37,680 for a family of four) and 30% will be reserved for households making no more than 165% of the Area Median ($103,650 for a family of four).
"The Clinton Parkview Apartments exemplifies HDC's commitment to maximize affordable housing opportunities," stated William Traylor, Acting President, HDC. "HDC is pleased to build on our partnerships with local developers to create housing opportunities for all New Yorkers."
"Fleet is proud to have played a pivotal role in the creation of this first-of-its-kind development that maximizes the creation of affordable, quality housing in Manhattan," said Philip Grossman, Executive Vice President and Market Manager, Community Real Estate Finance at Fleet. "Our participation in these types of projects supports our commitment to preserving the integrity of our inner city and low- to moderate-income neighborhoods."
Additional funding include grants of $720,000 from the Federal Home Loan Bank through Astoria Federal Savings Bank and $500,000 from Manhattan Borough President C. Virginia Fields. The tax-exempt bond financing also allowed the developer to receive tax credits that are being invested by MMA Financial.
Two NYC Housing Preservation and Development Department (HPD) programs will enable Clinton Housing Development Company, a community based not-for-profit organization, to fully rehabilitate the Flats, a seven story building constructed in 1915 as workers' housing and its neighbor, the Old School, built in 1894 as the Fifty-Third Street Industrial School. Once a model tenement and home of innovative social programs including a "Locked Out Club" for children of working parents, the two buildings will be combined to provide housing much in keeping with their original purpose.
"The Flats and the Old School represented the vanguard of social progress at the end of the 19th century," stated Joe Restuccia, Executive Director, Clinton Housing Development Company. "Unraveling the long stalled urban renewal plans of the last century took over 25 years of community persistence. Over a hundred years later, a combination of public and private investment, local initiative, and a forward thinking city government has provided a new model for the 21st century in creating a community of diverse incomes and social needs."
The Flats features separate entryways for each apartment off an internal central courtyard. This unique design feature will be maintained in transforming the building into 33 affordable apartments for families through HPD's Neighborhood Redevelopment Program. $7.3 million of the projected rehabilitation cost comes from HPD and the proceeds of federal low- income housing tax credits syndicated by the Enterprise Foundation.
The Old School will provide permanent housing with on-site support services for 53 formerly homeless and very low-income individuals. $7.6 million of construction financing for this portion of the development is being provided through HPD's Supportive Housing Loan Program and the proceeds of federal low- income housing tax credits syndicated by the Enterprise Foundation. To maintain affordability, the development will also receive $2.1 of Federal Section 8 Moderate Rehabilitation Subsidy over ten years.
Included in the development is a 2,500 square foot community garden along with offices and community space.
The New York City Housing Development Corporation (HDC) is a public benefit corporation established in 1971 to facilitate the creation of affordable housing throughout New York City by providing below market rate financing. HDC finances most of its activities through the issuance of bonds and notes as well as provides mortgages directly from its Corporate reserves. In its 30-year history, HDC has financed more than 76,000 units of housing throughout the city of New York.
HPD's mission is to promote quality housing and viable neighborhoods for New Yorkers. The Department is the nation's largest municipal housing development agency. Since Fiscal Year 1987, the agency has completed the construction or rehabilitation of 212,000 units of affordable housing. To request a Homeownership Kit or for more information about affordable rental housing, call 311 or log on to nyc.gov/hpd.
FleetBoston Financial is the seventh-largest financial holding company in the United States, with assets of $187 billion. The company's principal businesses, Personal Financial Services and Wholesale Banking, offer a comprehensive array of innovative financial solutions to 20 million customers. Through its Personal Financial Services franchise, Fleet offers retail banking, wealth management and investment services, nationwide brokerage, credit card and consumer lending services. These services are available through approximately 1,500 branches and more than 3,500 ATMs in the Northeast; through Fleet HomeLink, one of the nation's leading online banking platforms; and through telephone banking. Fleet is the leading small business services and commercial banking provider in the Northeast. Fleet's Wholesale Banking division provides commercial lending, syndications, leasing, cash management, asset-based finance, foreign exchange and interest rate derivatives to corporate clients. FleetBoston Financial is headquartered in Boston and listed on the New York Stock Exchange (NYSE: FBF) and the Boston Stock Exchange (BSE: FBF).