Financing will improve living conditions and extend affordability for 445 Homes
in the Mott Haven neighborhood of the Bronx
New York, NY - New York City Housing Development Corporation (HDC) President Marc Jahr and New York City Housing Preservation and Development (HPD) Commissioner Mathew M. Wambua, joined Acacia Network, Inc, to announce the preservation of OUB Houses and Mins Plaza. Both developments are located in the Mott Haven section of the Bronx. In exchange for rehabilitation financing, OUB Houses and Mins Plaza will extend affordability on a total of 445 units and remain in the Mitchell-Lama program for an additional 30 years.
The preservation and renovation of existing affordable housing is a core goal of Mayor Michael R. Bloomberg Administration's New Housing Marketplace Plan (NHMP), a multi-billion dollar initiative to create 165,000 units of affordable housing for half a million New Yorkers by the close of the 2014 fiscal year. Through the NHMP, the City and its partners currently have funded the creation or preservation of 129, 600 units of affordable housing across the five boroughs.
“For decades the City’s existing affordable housing stock has been home to low- and moderate-income New Yorkers throughout the five boroughs, and under the Mayor’s housing plan we have made its preservation a top priority,” said HPD Commissioner Wambua. “Preserving these developments is an affirmation of that ongoing commitment. As these valuable resources begin to show their age, we are finding new opportunities to keep them in good repair and to ensure they remain affordable for the next generation of hardworking New Yorkers.”
“Mayor Bloomberg’s housing initiative serves as an economic catalyst – injecting capital into distressed neighborhoods and placing great emphasis on preserving existing affordable housing,” said Marc Jahr, President of HDC. “The City and our partners are dedicated to stabilizing homes and improving the quality of life for New Yorkers. HDC has financed the preservation of more than 38,500 units in New York City and we are glad to have partnered up with our sister agency, HPD and Acacia Network in playing an important role with this project.”
Organizaciones Unidas del Bronx (United Organizations of the Bronx) Houses or OUB Houses is a four-building City-supervised Mitchell-Lama development in the Mott Haven neighborhood of the Bronx. It is located just south of the HUB retail area; a major shopping destination in the South Bronx, and directly west of St. Mary's Park. The 361-unit development features a laundry room, a community room, two parking lots and retail space. The buildings received their original certificate of occupancy in 1977. The unit mix consists of two studios, 90 one-bedrooms, 87 two-bedrooms, 126 three-bedrooms, 43 four-bedrooms, 11 five-bedrooms and two two-bedroom superintendent units. Under HUD Section 236 restrictions and HDC restrictions, income limits will be set at no more than 60% of Area Median Income (AMI) for 92 units (or $49,080 for a family of four) and no more than 80% AMI for 267 units (or $65,440 for a family of four). Limits are set by the U.S. Department of Housing and Urban Development (HUD) and are determined by the 2011 AMI calculations for this development.
Mins Plaza is an 84-unit City-supervised Mitchell-Lama building also located in Mott Haven neighborhood of the Bronx at 443-445 St. Ann’s Avenue. The 12-story building features a laundry room, a community room and two parking lots. Mins Plaza was originally constructed in 1977. The unit mix includes 10 one-bedrooms, 22 two-bedrooms, 40 three-bedrooms, and 11 four-bedroom units. There is one two-bedroom unit for an onsite superintendent. Income restrictions are similar to OUB Houses with 61 units reserved for households earning no more than 80% AMI (or $65,440 for a family of four)and 22 units reserved for households earning no more than 60% AMI(or $49,080 for a family of four).
The Acacia Network will make substantial system repairs that include replacing the oil burner with a new dual-fuel boiler system, putting down a new roofing system and repairing a major steam pipe that services two of the four buildings. Other repairs to will include replacing windows, brick repair/facade work, and updating the lobby and common areas. Residents will gain an increased sense of safety with the upgrades to the fire alarm system and community area lighting.
“The preservation of affordable housing is a pre-requisite in sustaining healthy communities”, said Raul Russi, CEO of the Acacia Network. “We are glad to partner with HPD and HDC in saving a vital housing community resource.”
The combined financing for both developments is approximately $33.8 million. The total development cost to rehabilitate Mins Plaza is $6.5 million. HDC will provide a $6.2 million Senior Loan. Approximately $300,000 will be provided through cash flow from building operations. The total development cost to rehabilitate OUB Houses is approximately $28 million. HDC will provide a $27 million Senior Mortgage and the property will be contributing approximately $1 million from cash flow.
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 129,600 affordable homes have been created or preserved.
About Mayor Michael R. Bloomberg’s New Housing Marketplace Plan (NHMP)
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. Since the plan’s inception, more than 129,600 affordable homes have been created or preserved. 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 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 Acacia Network, Inc.
Acacia Network is the largest Latino based nonprofit in the Northeast offering health and social services as well as housing and implementing economic development initiatives. Acacia Network is comprised of several community organizations with strong roots in the Bronx and East Harlem Communities.
Acacia Network’s mission is to partner with communities, lead change, promote healthy and prosperous individuals and families. This mission supports Acacia Network’s deep commitment to the communities in which it serves.
Acacia Network partners with government at all levels, other nonprofits, community based organizations, and with private companies to organize and implement treatment and social service programs, develop and manage housing and create innovative community-based enterprises. Acacia Network’s financial strength, professional expertise, history of positive outcomes and proven credibility result in an exceptional ability to design outstanding, inter-related programs.