FOR IMMEDIATE RELEASE
June 15, 2004
Press contact: Carol Abrams (212) 863-5176
CITY-SPONSORED LOAN PROGRAM TRANSFORMS VACANT INDUSTRIAL BUILDING INTO AFFORDABLE RENTAL HOUSING IN BROWNSVILLE
Former Furniture Factory Now Home to 23 Families
Housing Commissioner Shaun Donovan today joined Sally Love and Morris Kompel, principals of the Eighth Avenue Development Group, LLC, and Michael Lappin, President and CEO of the Community Preservation Corporation, in cutting a ribbon for 2026 Pacific Street, a former vacant industrial building converted into rental apartments through a city-sponsored loan program. The Building was originally constructed between 1888 and 1905 and housed a furniture manufacturing and woodworking business. But by the early 1970s, it was a vacant shell, a blight to the neighboring homeowners. Just months after Eighth Avenue Development Group, LLC. purchased the property, bricks fell from the façade and caused the sidewalk shed to collapse, bringing Kompel to the site to assure a crowd of angry neighbors that he would turn the eyesore into "something wonderful." Less than a year and half later, the old factory building is beginning life anew with 23 affordable studio, one- and two- bedroom apartments-some with Manhattan skyline views, and a landscaped back yard that will be home to hardworking New Yorkers like Rashia Fields, a secretary at a nearby health related facility.
"I'm so glad to have a beautiful apartment just blocks away from my job," exclaimed Ms. Fields.
Said HPD Commissioner Donovan, "We're creating housing through the adaptive reuse of derelict industrial buildings such as 2026 Pacific Street. We're also providing housing for New Yorkers with a range of incomes. This is a key strategy of Mayor Bloomberg's $3 billion housing plan, The New Housing Marketplace: Creating Housing for the Next Generation to construct or rehabilitate 65,000 homes and apartments by 2008."
The renovation was funded through the City's Participation Loan Program. The City provides low interests loans to private owners doing moderate or gut rehabilitations of buildings with more than twenty dwelling units. City funds at one percent interest are combined with a market rate-financing to provide a below market-rate interest rate loan.
To rehabilitate 2026 Pacific Street, the City committed $401,085 of capital funds and $895,000 of Federal HOME money. The Community Preservation Corporation provided another $950,000.
"We are thrilled to be partnering once again with the City to create quality affordable housing. Our more than 20 year relationship with HPD and with the developers made it possible to develop this property quickly and efficiently, " said Michael Lappin. "We also applaud the City's effort to create 65,000 units of new housing for ordinary New Yorkers."
Tenants were selected through a lottery process that gave preference to local residents who live in Brooklyn Community Board 16. Income restrictions apply for all of the apartments, which are available to households with very low-, low- and moderate-incomes.
Said Sally Love, Eighth Avenue Development Group, LLC. Principal, "We are delighted to have played a part in transforming this once derelict factory building into safe, quality housing affordable to people who staff our city's hospitals, daycare centers and schools as nurses, social workers, physical and occupational therapist's assistants and teacher's aides."
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 over 216,000 units of affordable housing. The Bloomberg administration's $3 billion housing plan will finance the creation or preservation of more than 65,000 homes and apartments in New York City neighborhoods over the next five years. To request a Homeownership Kit or for more information about affordable rental housing call 311 or log on to nyc.gov/hpd