Public officials and community-based developers broke ground today on a seven-story mixed use apartment building to be built on formerly vacant land in East New York, Brooklyn. The building will contain 103 affordable apartments and 17,000 square feet of ground floor commercial space. Located at 626 Sutter Avenue, between Sheffield and Pennsylvania Avenues, the building will be named after East New York community activist and musician Granville Payne.
The building is being built on City-owned land that was conveyed through the New York City Department of Housing Preservation and Development’s (HPD) Cornerstone program. The New York City Housing Development Corporation (HDC) financed the construction of the building by issuing $12.25 million in tax exempt bonds through its Low-Income Affordable Marketplace Program, known as LAMP. The Cornerstone and LAMP programs are part of Mayor Michael R. Bloomberg’s newly expanded New Housing Marketplace initiative to invest $7.5 billion over 10 years to build and preserve 165,000 units of affordable housing.
The building is expected to be completed in 2008. Its apartments will be reserved for families earning no more than 60% of New York City area median income, which in 2006, adjusted for family size, is $42,540 for a family of four or $29,760 for an individual. Sixty of the apartments will be two-bedroom units, 20 will be one-bedrooms, 12 will be three-bedroom units and 10 will be studios.
“By maximizing City resources and fostering innovative partnerships between City agencies and private developers, such as the Jackson Development Group, communities like East New York will benefit from the development of more affordable housing within their neighborhoods,” said HPD Commissioner Shaun Donovan. “Through programs such as HPD’s Cornerstone, the City can utilize the remaining tax foreclosure properties for the development of affordable housing, a key part of the Mayor’s $7.5 billion New Housing Marketplace Plan to create and preserve 165,000 units of affordable housing and house 500,000 New Yorkers over ten years.”
HDC financed the construction of the building by issuing $12.25 million in tax exempt bonds. “HDC is excited to be a major part of the housing renaissance underway in East New York,” said Emily A. Youssouf, the president of the Housing Development Corporation. “We have recently provided financing for the construction of six apartment buildings on Malta Street and Alabama Avenue as well as for preservation of Grace Towers at 272 Pennsylvania Avenue and 2060 Pitkin Avenue, and we are looking forward to doing more to increase the affordable housing supply in East New York. It is great developments like these that have allowed us to become the nation’s No. 1 issuer of multi-family affordable housing bonds.”
The East New York Urban Youth Corps has been planning the building for the past seven years. “Randy Daniels, the former New York secretary of state, and the East New York Urban Youth Corps board of directors, along with Community Board 5 are so honored to be a part of the Granville Payne development project,” said Winchester Key, CEO and President of the East New York Urban Youth Corps. “Granville Payne, for whom this building is named, was a dedicated community activist in East New York and a musician who donated his organs to medical science. Once again, the East New York community would like to thank all the participants who made this project a success.”
The Jackson Development Group, a developer of affordable housing, is currently building more than 450 affordable units in Brooklyn and the Bronx. “We are glad to be part of the Mayor’s Housing initiative along with both HDC and HPD,” said Neil J. Weissman, President of Jackson.
During construction, the bonds are secured by a letter of credit from Citibank. The development was designed by Hugo Subotovsky, and will contain 68 parking spaces. A lottery will be held to select tenants for the apartments. Residents of Brooklyn Community District 5 will be granted preference for half of the units.
About the New York City Department of Housing Preservation and Development
The New York City Department of Housing Preservation and Development's (HPD) mission is to promote quality housing and viable neighborhoods for New Yorkers. The department is the nation’s largest municipal housing development agency and is implementing Mayor Bloomberg’s New Housing Marketplace Plan to build and preserve 165,000 units of affordable housing over ten years. The New Housing Marketplace Plan is the largest municipal affordable housing effort in the nation’s history. HPD also encourages the preservation of affordable housing through education, outreach, loan programs and enforcement of housing quality standards.
About the New York City Housing Development Corporation
The New York City Housing Development Corporation (HDC) is the nation’s leading issuer of bonds for multi-family affordable housing. Established as a public benefit corporation by the State of New York in 1971, HDC is responsible for financing the creation and preservation of affordable housing in New York City. The financing provided by HDC is in the form of low-cost mortgages made through the sale of tax-exempt and taxable bonds. These mortgages are provided to developers for the construction and preservation of affordable housing. In addition, through our own corporate reserves, HDC provides second mortgages from its own corporate reserves usually at a 1% interest rate.
About East New York Urban Youth Corps
East New York Urban Youth Corps, Inc. (ENYUYC) was established in 1987 to promote and facilitate neighborhood controlled revitalization, growth, development, and empowerment in East New York. ENYUYC is involved in construction, development, and management of affordable housing, youth programs, crime prevention programs and social services programs.
About Jackson Development
Jackson Development Group, has been involved in the past 8 years in the building of over 500 two, three and four family houses in the boroughs of Brooklyn and The Bronx. In addition, Jackson along with its partners have built over 500 affordable housing units in six buildings in the Bronx in the last three years. Jackson Development is currently building an additional 450 units including Granville Payne Apartments in Brooklyn and the Bronx.