The New York City Department of Housing Preservation and Development (HPD) announced today that it has awarded nearly $3 million in federal Low Income Housing Tax Credits (LIHTCs) for 709 units of housing under a second round of 2006 funding. Of the 709 units, 646 -- or 91% -- will be affordable to low-income families. HPD has already awarded a total of $12.47 million in LIHTCs for fifty developments comprising 1,241 apartments under the first funding round for 2006. These credits will help build or rehabilitate affordable apartments across the city. The units produced using these subsidies will contribute to Mayor Bloomberg's $7.5 billion New Housing Marketplace Plan to fund the construction and rehabilitation of 165,000 affordable apartments and homes over ten years, the largest municipal affordable housing plan in the nation’s history.
HPD Commissioner Shaun Donovan said, "This is a great day for low-income families in need of affordable housing, especially the seniors and young people who will specifically benefit from many of the units being funded. I would like to thank the State of New York for giving HPD the authority to award Low Income Housing Tax Credits in New York City. These tax credits generate thousands of units of affordable housing for low-income families, and help us realize the Mayor's New Housing Marketplace Plan. The plan will create or preserve housing for half a million New Yorkers, more than the entire population of Atlanta.”
To be eligible for the Low Income Housing Tax Credits, developments must consist of substantial rehabilitation or new construction, with at least 20% of apartments reserved for low-income households. During funding rounds, developers apply competitively to HPD for allocations of tax credits, which are awarded based on selection criteria specified in the City's Qualified Allocation Plan.
The following developments received Low Income Housing Tax Credits under the round announced today:
Vicinitas Hall in the Bronx received credits to build 68 low income units including supportive housing to serve 41 young people. The other 27 units will serve low-income families, earning up to $42,540 for a family of four, or $29,760 for a single person. Supportive housing is permanent affordable housing with social services for populations with special needs including the formerly homeless. The project is being developed by the Lantern Group, a non-profit developer of affordable housing. Potential funding will also come from New York/New York III agreement, a $1 billion pact between the City and State to finance and develop 9,000 new units of supportive housing in New York City.
Riverdale Osborne Towers in Brooklyn received credits for the acquisition and rehabilitation of four buildings with 524 units, including 463 low-income units. The project sponsor, CPC Opportunity Fund II LLC is financing the project with a combination of Low Income Housing Tax Credits, HPD capital funds and a loan from the Community Preservation Corporation (CPC). CPC is a nationally recognized leader in helping developers finance and build affordable multi-family housing. Since its founding in 1974 CPC has financed more than 120,000 new or rehabbed units.
Serviam Gardens in the Bronx received tax credits for new construction of 82 units of federal Housing and Urban Development (HUD) Section 202 housing for seniors. Fordham Bedford Housing Corporation will provide these services working in tandem with Rosehill Management, an experienced provider of Section 202 social services. Services will include a wellness program, arts and recreational opportunities for seniors. HUD’s Section 202 program helps expand the supply of affordable housing with supportive services for the elderly. It provides very low-income elderly with options that allow them to live independently but in an environment that provides support activities. Serviam Gardens also expects to receive funding from the New York City Housing Trust Fund, which is funded by $130 million in Battery Park City Authority revenues. The Fund will be used to create or preserve 4,300 affordable housing units over the next three years.
Since 1988, to fulfill its commitment to affordable housing, HPD has allocated $175 million in competitive credits, generating $1 billion in private equity contributions. This has created more than 27,000 units of quality affordable housing. In the past 13 years, HPD has also processed applications for more than $80 million in "as-of-right" credits for 173 tax-exempt bond financed projects, creating another 11,000 affordable housing units.
A full list of the awardees and locations of the housing is available at www.nyc.gov/hpd
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.