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NYC Department of Housing Preservation & Development

Thursday, August 6, 2009

Christina Sanchez, HDC (212) 227-2644
Seth Donlin, HPD (212) 863-5176

HDC, HPD & Jackson Development Celebrate a Milestone: The First Development in the Nation to Use Recycled Bonds

42,000 Affordable Homes Financed by HDC under the Mayor’s New Housing Marketplace Plan 1,803 Jobs to be created

The St. Ann’s Terrace project will redevelop the largest remaining vacant parcel of land in the Melrose Commons Urban renewal Area of the South Bronx. This three-block parcel of vacant land will be transformed into a mixed-income residential community with ground floor retail space and underground parking.  The site is bordered by St. Ann’s Avenue, East 156th Street, Eagle Avenue and East 159th Street.  There will be approximately 600 residential apartments, 50,000 sq. ft. of ground floor retail and parking spaces for about 400 cars under several of the buildings.  Initially, construction will move forward on six buildings and about 186 parking spaces. The total development cost for these first six buildings is more than $169.4 million.  An additional 160 units in two more buildings, that will be to the last to begin construction, as well as additional parking, will be announced at a later date.  The St. Ann’s Terrace development is a joint venture between the Jackson Development Group and the Joy Construction Corporation.  Joy Construction will also serve the General Contractor for the entire Project. 

“Creating affordable communities is a critical component of our five borough economic opportunity plan and we are committed to using every innovative tool at our disposal in order to achieve our goal of creating 165,000 affordable units,” said Deputy Mayor Robert C. Lieber.  “Once, the South Bronx was a national symbol for urban decay but today we celebrate the rebirth of a neighborhood and the transformation of vacant land into a thriving community at St. Ann’s Terrace. I’d like to commend resident leaders, activists, elected officials and the community board for partnering with the City to create an attractive and affordable community families in the Bronx.” 

St. Ann’s Terrace is part of Mayor Michael R. Bloomberg’s New Housing Marketplace plan to build or preserve 165,000 homes for working-class New Yorkers by 2014. HDC’s original promise was to contribute 42,000 units under the plan.

“St. Ann’s Terrace is a meaningful project in so many ways – first, it will contribute 6oo affordable homes to this growing and increasingly vibrant community – second, it is the project that pushed us over the 42,000 unit benchmark and third, it showcases New York City’s ability to work with its Congressional representatives and create new tools that can be used to finance affordable housing, while increasing our ability to do more with existing resources,” said HDC President Marc Jahr.  “HDC is leading the nation in creating innovative funding mechanisms to leverage our capital markets, allowing the City to preserve tax credit bond volume cap by recycling tax-exempt multifamily bonds that have been paid off early.  The recycled bonds that are being put to work here on this mixed income project are making it possible for us to preserve our tax credit bonding capacity for where we really need it.”  HDC has provided $76.8 million in tax-exempt and recycled tax-exempt bonds to fund St. Ann’s construction phase.  Approximately $26.3 million will be from Recycled Bonds and $50.5 million will be from Stand Alone Tax-Exempt Bonds. This development captures the essence of our work,” Said Commissioner Cestero.  “Not only are we developing much needed affordable housing, but we are contributing to the continuing revitalization of Melrose Commons. With its mix of income levels and its thousands of square feet of ground floor retail, St. Ann’s will help to keep Melrose Commons a vibrant community where New Yorkers continue to be proud to live and work.”

 “The St. Ann’s Terrace Project represents one of the largest private/public affordable housing development partnerships in The Bronx,” said Bronx Borough President, Ruben Diaz Jr.  “I am pleased that my office is funding part of it. This project will feature sustainable design features that will save energy and reduce carbon emissions, making the buildings and the surrounding community a healthier place to live. I look forward to welcoming the residents to this village-like project to our borough”.

“We are so proud to be able to work with the City of New York in the redevelopment of a 3.5 acre blighted site into a vibrant mixed income affordable housing community” said Neil Weissman, Principal of Jackson Development Group.  “In this difficult financing environment, the ability to move forward with a project like St. Ann’s Terrace is a testament to both the public and private sector’s commitment to affordable housing in the Bronx and in New York City.”

 “The construction of St. Ann’s Terrace, a new 480 unit-mixed income development and the first to use recycled bonds represents a continuation of the new renaissance occurring in the buildings of multifamily housing in Bronx Community Board One,” said George L. Rodriguez, Chairperson of Community Board One.  “The project will provide access to sustainable affordable housing for residents of all income levels.”

Three of the buildings will house tenants of mixed-incomes: 80% AMI ($61,450 for a family of four) and 60% AMI ($46,080 for a family of four).  The 60% units qualify the project for tax-exempt recycled bonds.  The project will include 21 studio units, 48 one-bedroom units, 76 two-bedroom units and 19 three-bedroom units and two two-bedroom superintendent’s units.  Buildings C, D and E will serve low-income tenants at 60% AMI ($46,080 for a family of four) and 50% AMI ($38,400 for a family of four).  In addition, the project will include 51 underground parking spaces and about 11,300-square-feet of commercial space. 

Foundation work has begun at the site and will create about 1,803 jobs.  St. Ann’s is anticipated to be ready for occupancy in the late summer of 2011. 


NYC Department of Housing Development Corporation (HDC)
The New York City Housing Development Corporation (HDC) provides a variety of financing programs for the creation and preservation of multi-family affordable housing throughout the five boroughs of New York City.  Our programs are designed to meet the wide-range of affordable housing needs of the City's economically diverse population.

NYC Department of Housing Preservation and Development (HPD)
HPD’s mission is to promote quality housing and viable neighborhoods for New Yorkers. It is the nation’s largest municipal housing preservation and development agency. Responsible for implementing Mayor Bloomberg’s New Housing Marketplace Plan to build and preserve 165,000 units of affordable housing. HPD also actively promotes the preservation of affordable housing through education, outreach, loan programs and enforcement of housing quality standards. For more information, visit

Jackson Development Group (JDG)
A New York based Development Company that specializes in residential construction.  Since 1999, JDG has developed over 300 homes in and throughout Brooklyn and the Bronx.  The company previously developed approximately 75 new homes a year and has recently focused on developing multi-family mid-rise buildings in the Bronx and Eastern Brooklyn.

Joy Construction Corporation
A diversified construction company with a focus on general contracting, began its operations in 1995 with the rehabilitation of one commercial space. During the past 11 years, Joy has grown exponentially, completing over a dozen large-scale construction projects every year throughout the New York Metropolitan area.

About Recycled Bonds: Short term tax-exempt bonds are often utilized to fund the construction of multifamily housing. For various reasons, part of these bonds may be repaid within four years of their issuance.  Such repayment may be due to a mandatory redemption for tax reasons or due to an expectation that such bonds would be paid from tax credit equity contributions paid within such four year period.  The volume cap allocated to such bonds had been forever lost upon repayment.  Under the Housing and Economic Recovery Act of 2008 (the Act), volume cap is recycled. The Act treats the payoff of such bonds as a refunding for tax purposes and allows issuers to “recycle” the monies from such refunding to finance additional projects, including projects for different obligors, without the “recycled” funds counting against the volume cap. The new loan must be made within six months of the repayment of the original loan. This will give issuers more bond capacity to fund additional projects by recycling bonds that are already accounted for under the volume cap, however, the recycled volume cap does not provide additional as-of-right tax credits. 

New York City’s Five Borough Economic Opportunity Plan
The Five Borough Economic Opportunity Plan is a comprehensive strategy to bring New York City through the current economic downturn as fast as possible. It focuses on three major areas: creating jobs for New Yorkers today, implementing a long-term vision for growing the city's economy, and building affordable, attractive neighborhoods in every borough. Taken together, the initiatives that the City has launched to achieve these goals will generate thousands of jobs and put New York City on a path to economic recovery and growth.


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