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NYC Department of Housing Preservation & Development

FOR IMMEDIATE RELEASE
Thursday, November 18, 2010

Christina Sanchez (HDC) 212-227-2644
Eric Bederman (HPD) 212-863-5176


HDC, HPD, JACKSON DEVELOPMENT CELEBRATE RIBBON-CUTTING FOR NEW MULTI-FAMILY DEVELOPMENT IN BROOKLYN

Brooklyn, New York – The New York City Housing Development Corporation (HDC) and The NYC Department of Housing Preservation and Development (HPD), along with the Jackson Development Group and the Local Development Corporation of East New York; celebrated the ribbon-cutting of New Lots Plaza, a 87-unit affordable development located in the New Lots neighborhood of Brooklyn.

New Lots Plaza was a primarily vacant plot of city-owned land with a farmer’s market operated by the Local Development Corporation of East New York (LDCENY).   Now, New Lots Plaza stands as a seven-story mixed-use new construction building comprised of three studio apartments, 21 one-bedroom apartments, 55 two-bedrooms and seven three-bedroom apartments, as well as one superintendent’s unit.  All of the units’ rents will be affordable to low-income tenants with rents for 18 apartments set at 30% of AMI ($23,760 for a family of four), rents for 14 apartments set at 50% of AMI ($39,600 for a family of four) and rents for 54 apartments set at 60% of AMI ($47,520 for a family of four). 

The building will have approximately 6,000-square-feet that will be transformed into a tenant recreation area. New Lots will include 10,429-square-feet of commercial space some of which will be occupied by BriteSide Academy – a childcare and early education center for tenants and area residents, along with 51 underground parking spaces.   This development is part of HPD’s Cornerstone Program – Round IV, a multi-family new construction initiative designed to facilitate the construction of mixed-income housing on City-owned land.  The building will incorporate Energy Star appliances, high efficiency boilers and an additional layer of insulation between the brick and interior block to maximize energy efficiency.

“This neighborhood is being revitalized, thanks to private and non-profit sector investment,” declares Marc Jahr, President of the NYC Housing Development Corporation (HDC).  “Under the Mayor’s New Housing Marketplace Program, HDC has created and preserved 2,865 affordable units in Community Board #5, investing approximately $208 million.  New Lots goes beyond providing affordable homes for the community – we’re helping to revive a neighborhood, not just economically but also socially.”

”What we’ve done for New Lots Plaza is the epitome of our goal to make affordable housing the catalyst for strong and sustainable neighborhoods in New York. Under the Mayor’s housing plan we are building housing where it can be a connector to other resources and benefits that serve the entire community,” said HPD Commissioner Rafael E. Cestero.  “At New Lots we have 87 affordable new homes that will serve generations of New Yorkers and the BriteSide Academy will help enrich the children of this growing community.  When government and our private and non-profit partners come together with one singular goal - great things like New Lots Plaza happen. I thank HDC, Jackson Development and LDCENY for their shared vision and dedication to creating a stronger and more affordable New York.”

The NYC Housing Development Corporation (HDC) provided $13.3 million in tax-exempt bonds for the construction financing of New Lots Plaza, under the Low-Income Affordable Marketplace Program (LAMP).  In addition to the bonds, the project’s financing includes $3.94 million in HDC permanent financing and $4.78 million in subsidy.  $4.35 million was issued from HPD’s Mixed-Income Rental Program (MIRP), as well as a $2.56 million loan from New York City’s Housing Trust Fund (HTF).  The Brooklyn Borough President’s office provided $250,000 in Reso A funding, along with an additional $8.8 million provided by LIHTC Equity and $43,124 in cash equity.  First Sterling Financial is the Tax Credit Syndicator for the New Lots development. 

Neil Weissman, Principal of Jackson Development Group, said: "The New Lots Plaza development is a great example of the partnership between the public and private sector necessary to create quality affordable housing opportunities in our communities.  HPD, HDC, and the Brooklyn Borough President’s Office all provided the essential financing to make the project feasible and with rents set at levels affordable to the community.  Our non-profit partner, the Local Development Corporation of East New York, was instrumental in identifying local contractors and tradesmen who worked on thus bringing jobs to the community.  Additionally, the LDC worked closely to coordinate the project with the local elected officials such as Councilman Barron and Senator Sampson who have supported this development as part of their commitment to creating and preserving affordable housing in their respective districts.  More than just housing and jobs, we are very excited that BriteSide Academy has committed to opening a daycare and early childcare facility at New Lots Plaza that will serve the residents of the building and the entire neighborhood."

Commenting on the impact of the project, Sherry Roberts, Executive Director of the Local Development Corporation of East New York said, “New Lots Plaza is our first affordable housing project and it represents the best practices in assuring quality, affordable housing for New York City residents.  Moreover, it provides sorely needed affordable housing for local residents. The project will be a catalyst for strengthening retail development along New Lots Avenue. We are proud to have partnered with the Jackson Development Group in making this project a showcase for affordable housing development.”

Ann Soja, President of First Sterling said: “On behalf of First Sterling, a NYS qualified WBE with 50 employees; we understand it takes many successful partnerships to bring affordable housing to fruition.  We have invested 30 years in over 600 Affordable properties in 44 states & PR, with 83 properties in New York.  We are fortunate to have the opportunity to partner with the top developers at Jackson Development, to partner with top bankers at BNY Mellon, and to partner with leading housing agencies in the nation, NYC HPD & HDC.  These successful partnerships enabled us to bring $8.8 million in equity to the property. Congratulations to Jackson, BNY Mellon, NYC HPD and HDC.  We are honored to partner with you and to serve the residents of New York City.”

The project is part of Mayor Michael R. Bloomberg’s New Housing Marketplace Plan (NHMP)a $8.4 billion initiative to finance 165,000 units of affordable housing for half a million New Yorkers by 2014. To date, the plan has funded the creation or preservation of nearly 109,048 units of affordable housing across the five boroughs (66% of the Plan completed).

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About the NYC Housing Development Corporation (HDC): The Housing Development Corporation (HDC) provides a variety of financing programs for the creation and preservation of multi-family affordable housing throughout New York City. In partnership with the NYC Department of Housing Preservation and Development, HDC works to implement Mayor Michael R. Bloomberg’s New Housing Marketplace Plan to finance the creation or preservation of 165,000 affordable housing units by the end of the 2014 fiscal year. Since the plan launched in 2004, HDC financed nearly 47,521 homes for low- , moderate- and middle-income New Yorkers. The New York City Housing Development Corporation is rated AA by S&P and Aa2 by Moody’s.

About the NYC Department of Housing Preservation and Development (HPD): HPD is the nation’s largest municipal housing preservation and development agency. Its mission is to promote quality housing and viable neighborhoods for New Yorkers through education, outreach, loan and development programs and enforcement of housing quality standards. It is responsible for implementing Mayor Bloomberg’s New Housing Marketplace Plan to finance the construction or preservation of 165,000 units of affordable housing by 2014. Since the plan’s inception, a total of more than 108,000 affordable homes have been created or preserved. For more information, visit www.nyc.gov/hpd.

About Mayor Michael R. Bloomberg’s New Housing Marketplace Plan: New York City’s affordable housing program to build or preserve 165,000 units of housing — enough to house half a million New Yorkers — is the most ambitious and productive in the nation—creating housing as well as jobs for New Yorkers. In April, 2010 the City reached the critical benchmark of 100,000 units financed—representing an investment of $4.5 billion to date by the City, not including roughly $5 billion in bonds issued by HDC.

Led by HPD Commissioner Rafael E. Cestero, the Plan has been recast to maintain momentum while confronting head on the economic challenges facing the city, the state, the housing industry, the financial sector and individual New Yorkers and their families. In order to fulfill the NHMP goal of 165,000 units, HPD and HDC are responding to market realities and focusing on three primary goals: strengthening neighborhoods, expanding the supply of affordable and sustainable housing and stabilizing families by keeping them in their homes. To read more about the NHMP, please visit http://www.nyc.gov/html/hpd/html/about/plan.html.

About 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.

About Local Development Corporation of East New York (LDCENY): Founded in 1979 by a coalition of local business owners to enhance the community’s distressed business sector, the LDCENY continues its core mission to develop the local economy of East Brooklyn with efforts to sustain, attract businesses and foster local employment opportunities. Recently, the LDCENY has expanded its mission to include, the development of affordable housing.

The LDCENY is organized into three activity centers: East Brooklyn Industrial Development Center serving local manufacturers and industrial businesses in fifteen industries; the Women’s Brooklyn Enterprise Center, serving aspiring entrepreneurs and small business owners; the and Neighborhood Revitalization Program working to revitalize local commercial strips such as New Lots Avenue

 




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