First Transaction of Its Kind with NYCHA on Privately-Owned Land
Development Will Meet Enterprise Green Communities Criteria and LEED for Homes Gold Certification
Bronx, NY– The New York City Housing Authority (NYCHA), New York City Department of Housing Preservation and Development (HPD), Bronx Pro Group LLC,Services for the UnderServed (SUS), Chase,and Enterprise celebrated today the groundbreaking of 1070 Washington Avenue in the Morrisania section of the Bronx. The new 49-unit development will be energy efficient andaffordable housing with on-site supportive services for special needs tenants including veterans. Twenty-one of the units in this federally-funded building will be NYCHA public housing units, making 1070 Washington the first transaction of its kind with NYCHA on privately-owned land.
“The New York City Housing Authority is pleased to be part of this important partnership with Bronx Pro Group LLC, HPD, Services for the UnderServed (SUS), and Enterprise in creating this new affordable housing development that will feature 21 public housing units,” said NYCHA Chairman John B. Rhea. “This effort is part of NYCHA’s long term planning as detailed in Plan NYCHA to create and implement a clear, long-term development strategy for the entire NYCHA portfolio, including all land and development assets that could potentially accommodate new housing, leading to financial return, socio-economic impact and sustainability.”
“This building is emblematic of the legacy we want to leave to our fellow New Yorkers: a more affordable, sustainable and caring City. The combination of supportive, public and private affordable housing in a single development forms the basis of a dynamic, centered community,” said HPD Commissioner Mathew M. Wambua. “Each of our partners in this development has a proven track record of working to provide high-quality affordable housing in neighborhoods that have suffered through cycles of disinvestment and out-and-out poverty. The new building at 1070 Washington Avenue represents the best of innovative finance, dealmaking and green technologies that will culminate in a new beginning for its residents, whether they are coming from NYCHA developments, other privately held housing or are veterans in need of services.”
1070 Washington Avenue is being developed under Mayor Michael R. Bloomberg’s New Housing Marketplace Plan (NHMP). Launched in 2003, the NHMP is a multibillion dollar initiative intended to finance 165,000 units of affordable housing for half a million New Yorkers by the close of the 2014 fiscal year. To date, the NHMP has funded the creation or preservation of more than 130,606 units of affordable housing across the five boroughs. More than 40,200 units have been financed in the Bronx with more than 6,270 units in Community Board 3 where 1070 Washington Avenue is located.
The construction of new public housing units is made possible through NYCHA’s Replacement Housing Factor (RHF) funds. RHF funds are public housing capital dollars allocated by NYCHA for the development of new public housing units. Public housing authorities, such as NYCHA, receive RHF funds from the US Department of Housing and Urban Development (HUD) when they dispose of or demolish public housing stock. This funding encourages the construction of new public housing units to replace those lost. RHF funding will make 1070 Washington Avenue a mixed-use development with affordable housing that includes public housing and supportive housing units.
“Bronx Pro is excited to continue partnering with NYCHA, HPD, Enterprise and Chase on innovative projects employing unique financing tools. It took a creative effort by all of our partners to see this project to construction closing, and we are proud to be providing 21 public housing units to the Morrisania community,” said Peter Magistro, Founder, Bronx Pro Group. “1070 Washington is a great model for future projects. It provides a permanent affordable housing solution that will house some of New York City’s most vulnerable populations.”
Located at 1070 Washington Avenue, the 49-unit, low-income development will have 21 public housing units set aside for NYCHA tenants, and one unit set aside for an on-site superintendent. The units will total over 50,000 square feet of affordable housing including 16 studios, 11 one-bedroom units, 20 two-bedroom units, and one three-bedroom unit. Units will be available to families and individuals earning at or below 60% of the Area Medium Income (AMI) or $49,080 for a family of four. Units set aside for public housing residents will be rented to families currently on the NYCHA waiting list. NYCHA will provide operating deficit subsidies for the public housing units. Ten units in 1070 Washington Avenue will have a preference for populations with special needs and veterans who require supportive services. The studio units will be designed as accessible for either mobility or the hearing impaired. These units will be rented to those earning $23,240 or below. Services for the UnderServed (SUS), a not-for-profit partner of the development team that specializes in working with high-risk and high-need populations with multiple service needs, will provide support services. Support services will include counseling, employment guidance among other services. On-site supportive services will be available to residents through NYNY III financing.
“These affordable homes will be a welcome addition to a Bronx neighborhood transformed by community revitalization – the result of a collective commitment by terrific agency partners, investors, and developers like Bronx Pro to make New York a better place to live,” said Abby Jo Sigal, Vice President and New York Market Leader, Enterprise. “1070 Washington is creating more healthy, affordable homes in this thriving community, and rethinking how we build public housing. What an example of the power of partnerships that makes our communities stronger!”
Added Yves Ades, Ph.D., Chief Operating Officer, Services for the UnderServed, “SUS is proud to be able to add to the revitalization of this community and to bring affordable housing at a time when housing in New York City is so difficult to access.”
“As New York’s largest bank, we are committed to investing in projects that have a positive and sustainable impact on communities where we do business,” said Jane Silverman, senior banker for Chase Community Development Banking. “1070 Washington will bring much-needed environmentally-friendly affordable housing to the Morrisania neighborhood.”
HPD requires all new developments and those undergoing substantial renovation to meet the Enterprise Green Communities criteria. Capital provided by the Bronx Borough President’s office will allow the development to use the latest green technology to meet this goal and reach LEED for Homes Gold certification. In addition, 1070 Washington Avenue will be in compliance with ENERGY STAR certification through participation in NYSERDA’s Multifamily Performance Program (MPP). In all, 1070 Washington is expected to perform 20 percent more efficiently than a standard building, five percent improvement over Enterprise Green Communities, LEED for Homes, and MPP’s mandatory threshold.
Among the green technologies to be employed are a robust envelope design comprised of both exterior and interior cavity insulation, ample roof insulation, fiberglass windows, 90 percent efficient condensing boilers, high efficiency PTACs, rooftop solar thermal installation, and superinsulated tanks to store preheated water. In addition, the building will feature low-flow, high quality plumbing fixtures; high-efficiency fluorescent lighting with occupancy sensors to reduce electricity consumption; rooftop fans; and low VOC (Volatile Organic Compounds) paints, primers, adhesives, and sealants. All site landscaping will be drought-tolerant and non-invasive. Light-colored site pavers and an ENERGY STAR-compliant, highly reflective roofing capsheet will be installed to reduce heat island effect. The remaining portion of the roof will be a landscaped garden space.
The total development cost for this 7-story building is approximately $21.7 million. The development is being financed by $4.7 million in NYCHA’s Replacement Housing Factor (RHF) funds. HPD has provided a $3.4 million HOME loan. HPD also allocated $1,063,318 in funding through the Neighborhood Stabilization Program (NSP),which was created by HUD to fund projects in neighborhoods most affected by foreclosures and undeveloped, vacant parcels of land. The development of this formerly vacant lot furthers HUD’s goal of neighborhood stabilization. The Bronx Borough Presidents’ Office is providing $575,000 in City Capital dollars. Enterprise has raised $12.5 million in Low Income Housing Tax Credit equity, sourced by JP Morgan Chase through HPD. JP Morgan Chase is providing the $6 million construction loan. 1070 Washingtonis currently slated for completion at the end of 2013.
To apply for these units, prospective tenants must submit an application to the housing lottery. Leasing is scheduled to begin in March 2013. Applications will be handled on a first-come, first-serve basis. Qualified applicants will be required to meet income guidelines and additional selection criteria. For information on how to apply for this and other affordable housing developments, prospective tenants may visit the ‘Apartment Seekers’ section of the HPD website: www.nyc.gov/hpd
# # #
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 130,606 affordable homes have been created or preserved. For more information, visit www.nyc.gov/hpd
About the New York City Housing Authority (NYCHA)
NYCHAprovides decent and affordable housing in a safe and secure living environment for low and moderate- income residents throughout the five boroughs. To fulfill this mission, NYCHA must preserve its aging housing stock through timely maintenance and modernization of its developments. NYCHA also administers a citywide Section 8 Leased Housing Program in rental apartments. Simultaneously, we work to enhance the quality of life at NYCHA by offering our residents opportunities to participate in a multitude of community, educational and recreational programs, as well as job readiness and training initiatives. For more information, visit: www.nyc.gov/nycha
About Bronx Pro Group
The Bronx Pro Group is a community development firm that employs 86 professionals and support staff engaged in real estate development, construction oversight, property management, and residential services. The company began as a property management firm in 1988 and in 1998 expanded its business activities to include the development of low and moderate-income housing. Beginning first with rehabilitation of occupied, city-owned buildings, the company has broadened its scope to include the development of large new construction projects that contain both residential and commercial/community facility spaces. To date, Bronx Pro has developed $201 million (1,202 units) through various City programs such as NYC Housing Development Corp’s LAMP and New HOP programs, the City’s Mixed Income Rental Program and the New Foundations Program. Bronx Pro has an additional $40 million (224 units) in predevelopment throughout the Bronx.
SUS is an $85 million non-profit organization that since 1978 has "provided housing and support services for individuals with special needs to live with dignity in the community, direct their own lives and attain personal fulfillment." With a staff of over 1,000, each day, SUS serves close to 4,000 of the most vulnerable individuals in New York City society--individuals with special needs due to a developmental, mental or physical disability often compounded by poverty, homelessness, inadequate education, substance abuse or a history of institutionalization. SUS has also developed an expertise in serving the needs of veterans and people subsisting on the margins of society.
Enterprise is a leading provider of the development capital and expertise it takes to create decent, affordable homes and rebuild communities. For 30 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 $11 billion in equity, grants and loans to help build or preserve more than 280,000 affordable rental and for-sale homes to create vital communities. Visit www.EnterpriseCommunity.organd 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 35,000 affordable homes for 116,000 New Yorkers, and has committed over $2.3 billion in equity, grants, and loans to community development projects across the city.
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.3 trillion and operations worldwide. The firm is New York City’s largest bank and largest private employer with its global headquarters building located in midtown Manhattan. JPMorgan Chase is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.