Dumont Green Attains Enterprise Green Communities Certification Now Required By HPD for All City Funded New Construction and Major Rehab Projects
Development Boasts Largest Residential Solar Panel System In NY State
Brooklyn, NY - NYC Housing Development Corporation (HDC) President Marc Jahr, NYC Department of Housing Preservation and Development (HPD) First Deputy Commissioner Douglas Apple, Brooklyn Borough President Marty Markowitz, Councilman Charles Barron, Alan Bell Principal of The Hudson Companies, Inc., Todd A. Gomez of Bank of America Merrill Lynch, and Shola Olatoye of Enterprise Community Partners celebrated the ribbon cutting for Dumont Green, a new eight-story 176-unit affordable apartment building at 1490 Dumont Avenue. Located in the East New York section of Brooklyn, Dumont Green was built under HDC’s Low-Income Affordable Marketplace Program (LAMP) and is the first LAMP project in the outer boroughs to install and use solar panels. The project was developed by the Hudson Companies using Enterprise Green Communities Criteria, a comprehensive set of guidelines to encourage green building practices by developers of affordable housing. Since January 2011, HPD has required the developers of new affordable housing construction and substantial renovation projects funded by the City to attain Enterprise Green Communities Certification by adhering to these criteria.
Dumont Green was is part of Mayor Michael R. Bloomberg’s New Housing Marketplace Plan (NHMP), an $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 112,178 units of affordable housing across the five boroughs; 5,007 of those units in Brooklyn Community Board 5 where Dumont Green is located.
“Over the years, East New York has seen its fortunes ebb and flow,” said HDC President Jahr. “Just a few years ago it would have been hard to believe that such an innovative, ambitious and sustainable project would be undertaken here by a private developer. But we stand here today because we are committed 100 percent to seeing that this neighborhood, and others like it around the City, continues to benefit and grow from our investment in it and our belief that the people who live here deserve the best of our efforts. I am proud to stand with our partners here today to celebrate the completion of Dumont Green – a great place to call home.”
“This City’s track record in creating and preserving high quality housing that is affordable to its citizens is unequalled anywhere else,” said HPD First Deputy Commissioner Apple. “In this Community Board alone, here in East New York, the Mayor’s New Housing Marketplace Plan has seen the development of more than 5,000 units, including this shining new 176-unit complex. Dumont Green is a remarkable building for many reasons, not the least of which is that on its roof in the largest solar panel array on any residential building in the State. Simply put, this is good business and a smart investment—for the developer, building green reduces operating costs which in turn helps to preserve long-term affordability for the tenants. It is this sort of forward thinking and commitment to green development that keeps New York City in the forefront of the affordable housing industry and leading the way in creating the sustainable city of the future for New Yorkers now and in generations to come.”
The eight-story Dumont Green boasts the largest residential solar panel system in the State. This 80,500 watt system will help provide power to laundry facilities, elevators, common areas, and security systems. Other amenities include dishwashers and dual-flush toilets in every apartment, a 6,000-square-foot enclosed and landscaped courtyard, forty-four parking spaces, a secured bike storage facility with capacity to store 88 bicycles, a large laundry facility, and community space with a kitchen. The development also features wood vanities manufactured by Brooklyn Woods, a Gowanus-based cabinetmaker.
All of the units will be affordable to families earning 30 percent to 60 percent of Area Median Income (AMI), or up to $46,080 for a family of four. Twenty percent of the units are set aside for formerly homeless tenants through the NY/NY III program who will receive social services either on site, or through a referral system.
“I was thrilled to support Dumont Green, which not only provides 176 units of affordable housing to working families—not to mention the jobs created by its construction—but will also utilize ‘green’ construction practices and materials such as the largest solar electric photo-voltaic system in any residential building in New York City, EnergyStar appliances and low-VOC cabinets that were manufactured right here in Brooklyn! To HDC, HPD and the Hudson Companies, I say ‘bravo’ for ensuring that Brooklyn’s future is not only affordable—but sustainable, too,” said Brooklyn Borough President Marty Markowitz.
“The affordability of this project helps us to continue being the number one City Council office in building affordable housing. The solar panels enable us to provide leadership in securing 21st century solar energy. These are great accomplishments for East New York,” said Councilman Charles Barron.
Dumont Green is one of the first City-subsidized affordable housing developments to voluntarily attain Enterprise Green Communities Certification. The Enterprise Green criteria were created to yield lowered utility costs, a healthier living environment and increased sustainability while benefiting the financial stability of both tenants and affordable housing owners. In January 2011, HPD announced that it was requiring all new construction and substantial rehabilitation projects to adhere to the criteria of the program. In achieving Enterprise Green Communities Certification, City-financed affordable housing will be built to minimize construction waste and maximize water conservation, energy efficiency, and the use of non-toxic building materials. The City expects to certify approximately 40 affordable housing projects annually as meeting the Enterprise Green Communities criteria and provide financing for more than 30,000 units with energy efficiency and sustainability requirements by 2014.
The most recent published Housing and Vacancy Survey showed that between 2005 and 2008, citywide contract rent only increased 1.6% in real dollars while median gross rents increased by 4.2% over the same period. This difference can be attributed to rising utility costs, which demonstrates a clear need for more efficient energy use and standards to help reduce the cost burden to renters and homeowners. The maintenance and operating saving derived from energy efficient measures will not only reduce the City’s resource consumption and promote a cleaner environment, but will ensure the physical and financial sustainability of individual properties, which will be passed on in the form of lower costs to tenants.
“All of us at Hudson are grateful for the confidence shown in us by all of the critical players that have enabled us to produce this high quality energy efficient housing for the neediest in our community,” said Alan Bell, Principal of The Hudson Companies and Managing Member of Dumont Green LLC. “These include the Mayor’s Department of Housing Preservation and Development, the NYC Housing Development Corporation, the Borough President of Brooklyn Marty Markowitz, the Bank of America, Enterprise, Richman Housing Resources, NYSERDA and Lettire Construction.
"Dumont Green homes are not only affordable, but also healthy and sustainable, providing well-designed, green housing for its residents, the community and the globe," said Abby Jo Sigal, Vice President and New York Market Leader, Enterprise Community Partners, Inc. "Enterprise looks forward to continuing to work closely with HPD, HDC, and our terrific developer partners like Hudson Companies to ensure that affordable buildings deliver economic, environmental, and health benefits to owners and residents – just as Dumont Green will."
“Bank of America is a leader in affordable housing finance nationally, and Dumont Green exemplifies the type of multi-purpose development that we are committed to across the U.S.,” said Todd Gomez, Bank of America Community Development Banking Executive for the Northeast region. “We’re pleased to provide debt financing and tax credit equity to support this project and help make this wonderful addition to the community a reality.”
Funding for Dumont Green has been provided in part through the NYC Housing Trust Fund (HTF), NYC Acquisition Fund, a $225,000 solar rebate from NYSERDA, and $1 million from the Brooklyn Borough President’s Office. HDC has provided $25.8 million for the first phase of construction and $5.5 million for the permanent financing of this project. HPD is providing financing in the form of $10.1 million in City Capital funding, $3.9 million in HTF funds and $2.1 million in HOME funds. Bank of America Merrill Lynch is letter of credit provider and construction loan servicer on the project. Bank of America is also the tax credit investor, purchasing the project’s 4% Low Income Housing Tax Credits through syndicator Richman, to generate approximately $15.59 million in equity for the project. The total cost of the development is approximately $50.6 million.
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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 2003, HDC financed more than 48,000 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, more than 112,000 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.
The Plan has been recast to maintain production 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 the NYC Housing Development Corporation (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.shtml.
About The Hudson Companies:
The Hudson Companies Incorporated is a real estate development firm active in residential development in New York City. Founded in 1986, Hudson's long record of successful real estate development reflects a commitment to managing the details of the development process from property acquisition, design and project finance through construction, marketing and property management. The firm is experienced in both new construction and building rehabilitation, including the adaptive re-use of historic structures. The firm's concentration in residential development spans the luxury, middle-income and subsidized affordable housing markets. To date, Hudson has developed over 4,400 new units of housing in over 40 projects and has several hundred more units currently under development. Hudson prides itself on creating high quality, attractive buildings appropriate for each marketplace. Hudson has demonstrated an ability to complete a broad array of complex and exciting projects.
Enterprise is a leading provider of the development capital and expertise it takes to create decent, affordable homes and rebuild communities. For more than 25 years, Enterprise has introduced neighborhood solutions through public-private partnerships with financial institutions, governments, community organizations and others that share our vision. Enterprise has raised and invested more than $10 billion in equity, grants and loans to help build or preserve more than 250,000 affordable rental and for-sale homes to create vital communities. Enterprise is currently investing in communities at a rate of $1 billion a year. Visit www.enterprisecommunity.org and www.enterprisecommunity.com to learn more about Enterprise's efforts to build communities and opportunity.
Since opening our New York office in 1987, Enterprise has created or preserved more than 32,000 affordable homes for 105,000 New Yorkers, and has committed nearly $2.2 billion in equity, grants, and loans to community development projects across the city.