Gateway Elton Street 1 Development to Provide 197 Energy-Efficient Affordable Apartments – Designed to Meet NYSERDA Standards And Anticipated LEED Sliver Rating
When All Phases Are Complete Gateway Elton Will Boast Largest Solar Photo Voltaic Renewable Energy System On A Residential Development In New York State
Brooklyn, NY — The NYC Department of Housing Preservation and Development (HPD), NYC Housing Development Corporation (HDC), The Hudson Companies Incorporated Principal and Managing Member of the Gateway Elton Street 1, LLC, Alan Bell, and the President of Related Retail for the Related Companies, Glenn A. Goldstein and CAMBA/CAMBA Housing Ventures Executive Director Joanne Oplustil joined today to celebrate the groundbreaking of the innovative Gateway Elton Street 1 affordable housing project Located at 1149, 1152, 1165 and 1166 Elton Street in the Spring Creek section of Brooklyn, the four buildings totaling 197 units comprise the first phase of the three phase development, that as currently planned, will boast the State’s largest solar energy system on a residential development when complete. It will also be built to meet NYSERDA’s energy-efficiency standards and is projected to qualify for a LEED Silver rating. Also attending the ceremony were Brooklyn Borough President Marty Markowitz, Councilman Charles Barron, Senior Vice President for Global Commercial Banking at Bank of America Merrill Lynch, Maurice Coleman, the President of Richman Housing Resources LLC, William W. Traylor, NYSERDA’s Vice President for Operations & Energy Services, Bob Callender, and Housing Director - NYC Field Office of New York State Office of Mental Health, Caren Abate.
Gateway Elton 1 is being developed under 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 113,131 units of affordable housing across the five boroughs; more than 5,000 of those units in Brooklyn Community Board 5 where Gateway Elton is being built.
“The affordable housing at Gateway Elton is a catalyst in the continued revitalization of this growing neighborhood. But it is the families who will make these affordable units into homes and who will create the bonds that form the backbone of strong communities,” said HPD Commissioner Mathew M. Wambua. “It is the City’s commitment to empowering and serving our fellow New Yorkers that drives our mission to complete the most ambitious housing plan in the nation, and why we are endeavoring to lead the way in innovative green building practices. We could not achieve this without the critical support of HDC and our development partners such as the Hudson Companies who share our goal of creating a more affordable and sustainable City for all New Yorkers.”
“In my years of work in the affordable housing arena, I have seen this neighborhood reborn,” said HDC President Marc Jahr. “Mayor Bloomberg’s housing plan has been central to this effort. We say it is the most ambitious in the nation: it is. It is also the most productive; tens of thousands of affordable homes have been funded since 2003. HDC plays a pivotal role in this process, providing access to capital and deepened subsidy from its corporate reserves. It’s this financial support, as well as HPD’s, that enables developments like Gateway Elton to be built and communities like East New York to be revived.”
“The Hudson Companies Incorporated has been a proud developer of affordable housing for complex and innovative projects for 25 years”, stated Alan Bell, Principal and Managing Member of Gateway Elton Street 1, LLC. “Working with great private and public partners on this project to transform vacant City-owned land into a thriving community that creates new jobs, quality rental housing, community space and commercial amenities - while also addressing energy efficiencies and environmental impacts - is part of Hudson Companies long standing commitment to our urban development projects.”
“For nearly 40 years Related has had a steadfast commitment to affordable housing and we are thrilled to be partnering with Hudson Companies and the City of New York to bring critical new affordable housing stock, community amenities and hundreds of constructions and permanent jobs to East New York,” said Glenn A. Goldstein, President of Related Retail, a division of the Related Companies, a partner in Gateway Elton Street 1, LLC.
Gateway Elton 1 will consist of four buildings totaling 197 affordable rental units and approximately 15,609-square-feet of commercial and community facility space. This groundbreaking marks the first of the three phases of this mixed-use project. The complex is built on City-owned property which was conveyed by HPD to the development team. When all three phases are complete they will encompass a total of 659 affordable apartments with approximately 60,000-square-feet of community space – including a childcare center and convenience shops and restaurants as part of a comprehensive effort by the City and its development partners to create a strong, vibrant and self-sustaining neighborhood.
The green design and development of this project directly support PlaNYC, the Bloomberg administration’s sustainability plan to prepare the City for one million more residents while reducing greenhouse gas emissions by 30% by 2030. By reducing resource usage and improving air quality, Gateway Elton will help to contribute to a more sustainable future for the benefit of all New Yorkers. When all three phases are complete, the Gateway Elton development will create over 200,000 watts of renewable energy using the largest Solar Photo Voltaic (PV) renewable energy system on a residential development in all of New York State. The project also includes ENERGY STAR® appliances and fixtures that will help meet NYSERDA’s energy efficiency standards, obtain an ENERGY STAR® building label and an anticipated LEED for Homes Silver Rating. Creating a tight building ‘envelope’ with well-insulated walls, ENERGY STAR® HVAC appliances and green fixtures, the Gateway Elton Street development will reduce energy and water waste resulting in savings for the tenants, as well as reducing the carbon footprint of the site for the environment.
“I commend Gateway Elton for its commitment to energy efficiency and environmental sustainability in providing residents of this future apartment building with a healthy and comfortable place to live,” said Francis J. Murray Jr., President and CEO of NYSERDA. “NYSERDA is proud to be a partner in this affordable housing building, and we’re ready to partner on more projects that reduce the energy cost burden for New Yorkers.”
This project will provide affordable rental apartments to tenants earning below 60 percent of the Area Median Income (AMI) or what is equivalent to a household income of $47,520 for a family of four. Additionally, forty units will be set aside for individuals transitioning to independent living from institutions operated by the NYS Office of Mental Health (NYSOMH), and will include rent and case management assistance from the agency. The Gateway Elton Street project will also include a daycare facility of approximately 6,000 square feet which is being developed in partnership with NYC’s Administration for Children’s services.
Based on the US Bureau of Economic Analysis 2010 multipliers, this first phase of the Gateway Elton Street project is projected to provide 306 new construction jobs and an additional 144 jobs that are indirectly related, including women and minority business enterprise positions for subcontractors - including W/MBE owned subcontractors from Brooklyn.
“At Bank of America Merrill Lynch, we strive to provide people with the opportunity to live in affordable, safe housing in vibrant neighborhoods,” said Maurice Coleman, Bank of America Merrill Lynch Community Development Banking. “Gateway Elton 1 is a perfect example of the type of development we are committed to as one of the nation’s top affordable housing lenders.”
“As a Brooklyn based experienced developer and service provider, we are honored to partner with Hudson Companies and Related Companies to build much needed affordable housing in Brooklyn,” stated Joanne Oplustil, Executive Director of CAMBA/CAMBA Housing Ventures.
Michael F. Hogan, PhD, Commissioner of the New York State Office of Mental Health said, "OMH is pleased to be a partner in the Gateway Elton Street project. OMH recognizes the need for safe and affordable housing for all New Yorkers, including persons recovering from a mental illness. Housing with flexible supportive services is a key element in the recovery process, and the Gateway Elton Street project will give 70 individuals the opportunity to live safely in this wonderful new housing development."
“I am thrilled that the Elton Street 1 project will not only provide nearly 200 units of affordable housing to working families and create hundreds of local construction and ancillary jobs, but this LEED-certified complex will utilize sustainable construction practices and materials like Energy Star appliances and the largest solar photo voltaic renewable energy system in any residential development in the State,” said Brooklyn Borough President Marty Markowitz. “Kudos to Mayor Bloomberg and his New Housing Marketplace Plan, the NYC Department of Housing Preservation, NYC Housing Development Corporation and the Hudson Companies for ensuring that Brooklyn’s future is not only affordable—but sustainable too.”
“This is a momentous day for the residents of East New York, Brooklyn”, stated Charles Barron, Councilman of the 42nd District. “Our community is in desperate need of affordable housing, therefore, our people will greatly benefit from this new affordable housing project.”
Funding and support for the Gateway Elton Street project was made possible through a joint venture between the City of New York and the Hudson Companies and the many public and private partners who have been dedicated to bringing affordable housing to this Brooklyn neighborhood. HPD provided the land to the developer and $10.6 million in construction financing and $11.8 million in permanent financing through its Low Income Rental Program. HDC provided $34.8 million in tax exempt bonds and $12.8 million in loan subsidy, along with a $12 million senior mortgage. Bank of America is providing a $35.1 million letter of credit, and the Richman Group is the tax credit syndicator. NYSERDA is providing $531,458 for participation in the Multi-Family Performance and Solar PV Program. Gateway Elton 1 also received strong support from Brooklyn Borough President Marty Markowitz, Councilman Charles Barron, and Brooklyn Community Board 5 Chair Walter Campbell.
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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 113,000 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. As of May, 2011 the City had financed the creation or preservation of more than 113,000 affordable units—representing an investment of more than $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 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 50,000 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.
NYSERDA, a public benefit corporation, offers objective information and analysis, innovative programs, technical expertise and funding to help New Yorkers increase energy efficiency, save money, use renewable energy, and reduce their reliance on fossil fuels. NYSERDA professionals work to protect our environment and create clean-energy jobs. NYSERDA has been developing partnerships to advance innovative energy solutions in New York since 1975.
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.
About Related Companies: Related Companies is the most prominent privately-owned real estate firm in the United States. Formed over 39 years ago, Related is a fully-integrated, highly diversified industry leader with experience in virtually every aspect of development, acquisitions, management, finance, marketing and sales. Headquartered in New York City, Related has offices and major developments in Boston, Chicago, Los Angeles, Las Vegas, San Francisco, South Florida, Shanghai and Abu Dhabi and boasts a team of approximately 2,000 professionals. The Company’s existing portfolio of real estate assets, valued at over $15 billion, is made up of best-in-class mixed-use, residential, retail, office, trade show and affordable properties in premier high-barrier-to-entry markets. Related is staunchly committed to sustainable design with over $6 billion in green development underway or completed. For more information about Related Companies please visit www.related.com
About CAMBA/CAMBA Housing Ventures:
CAMBA is a non-profit agency that provides services that connect people with opportunities to enhance their quality of life. CAMBA serves more than 35,000 individuals and families, including 8,000 youth, each year. Specifically, we help people of low-income; those moving from welfare to work; people who are homeless, at risk of homelessness or transitioning out of homelessness; individuals living with or at risk of HIV/AIDS; immigrants and refugees; children and young adults; entrepreneurs and other groups working to become self sufficient. The majority of CAMBA’s clients live, work and/or attend school in Brooklyn. CAMBA Housing Ventures, Inc. (CHV), created in 2007, works in partnership with prominent national organizations, local developers, community-based agencies, and city and state governments to develop safe, high quality affordable housing.