Email a Friend
NYC Department of Housing Preservation & Development

FOR IMMEDIATE RELEASE
Press Release # 03-1506
Tuesday, March 14, 2006



CONSTRUCTION BEGINS ON 6 BUILDINGS IN EAST NEW YORK WITH 48 AFFORDABLE APARTMENTS

City officials and community-based developers broke ground today on six 4½-story apartment buildings that will rise back-to-back on Malta Street and Alabama Avenue in East New York. The buildings will provide 48 affordable apartments with rents ranging from approximately $660 to $920 per month. They will be built on a vacant, formerly City-owned lot in an area already substantially revitalized by the construction of 700 new affordable single family homes.

The City’s transfer of the land for use as affordable housing is part of Mayor Michael R. Bloomberg’s newly expanded New Housing Marketplace Plan to invest $7.5 billion over 10 years to build and preserve 165,000 units of affordable housing. The new buildings, to be located at 45-65 Malta Street and 662-8 Alabama Avenue, between New Lots and Hegeman Avenues, will rise on land formerly owned by the New York City Department of Housing Preservation and Development (HPD), which transferred the land to East Brooklyn Congregations last year for $1.

The New York City Housing Development Corporation financed the construction of the buildings by issuing $4.85 million in tax-exempt bonds and by lending $2.64 million from its corporate reserves to a partnership comprised of East Brooklyn Congregations, which will own the buildings, and CPC Resources, Inc., which is developing them. “Our record volume of activity in recent years is the result of innovative public-private partnerships like this one,” said Emily A. Youssouf, the president of the Housing Development Corporation. “We’re looking forward to doing more work in East New York.”

Shaun Donovan, commissioner of the Department of Housing Preservation and Development and chairman of the Housing Development Corporation, said: “New York City’s success in reducing crime, reforming our schools, and building our economy is creating a major new challenge: providing affordable housing for all those who want to share in that success. To meet the affordable housing challenge, the Mayor has launched the largest affordable housing initiative ever undertaken by any city in the nation. We will build and preserve 165,000 units of affordable housing over ten years, enough housing for half a million New Yorkers. Today we celebrate the continued transformation of East New York and neighborhoods across the city through the construction of housing like the Malta Street apartments. Not only will these apartments contribute to the continued revitalization of East New York, they will also provide much-needed affordable housing for hard working New Yorkers.”

Over the past quarter century, East Brooklyn Congregations has been responsible for the transformation of many vacant blocks in East New York with the construction of 2,900 townhouses through its Nehemiah Plan.

“When we began building single-family homes in 1983, there were scores of acres of land, thousands of abandoned units, and no need for higher density construction,” said the Rev. David K. Brawley of East Brooklyn Congregations. “Today, there is almost no vacant land, no vacancy, and a desperate need for affordable rental housing. Working with the City and the Community Preservation Corporation, we have changed the landscape over the past two decades. The Malta Street apartments will be just the first of a series of affordable apartment efforts in East Brooklyn and elsewhere.”

CPC Resources, Inc., as the development arm of The Community Preservation Corporation, is lending its broad expertise in affordable housing development and will oversee all aspects of the development and construction of the project until the apartments are fully leased. This is the Community Preservation Corporation’s second collaboration with East Brooklyn Congregations. The Community Preservation Corporation financed nearly 700 units of affordable housing under the Nehemiah program for an investment of more than $34 million.

“We are really pleased to work with East Brooklyn Congregations once again to create affordable housing in East New York, right in the heart of the Nehemiah homes, one of our most successful affordable home ownership projects,” said Michael Lappin, president and chief executive of CPC Resources and the Community Preservation Corporation. “Our flexibility as both a lender on the nonprofit side and as a for-profit developer increases our ability to significantly impact low-income communities.”

The development was designed by Curtis + Ginsburg Architects, LLP, and will include 17 parking spaces in the rear yard. The buildings are being built by the West Manor Construction Corporation, an affiliate of the Bluestone Organization.

During construction, the bonds are backed by a letter of credit from JPMorgan Chase. The tax credit equity is syndicated through the Enterprise Social Investment Corporation.

Rents are set to be affordable for low income households, who can earn no more than 60% of the New York City median income. (Under income guidelines, an individual could earn no more than $26,400 and a family of four no more than $37,680, at today’s figures, to be eligible to live in the apartments.)

Slightly more than half of the 48 apartments will two-bedroom units, as follows:

 Number of Units

Size Type

12

One-Bedroom

23

Two-Bedroom

4

Two-Bedroom Duplexes

8

Three-Bedroom Duplexes

   

A lottery will be held to select tenants for the apartments. Lottery applications are projected to be released in the fall of 2006. Residents of Brooklyn Community District 5 will be granted preference for half of the units.




View Site Map