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NYC Department of Housing Preservation & Development

FOR IMMEDIATE RELEASE
Monday, May 7, 2012

Eric Bederman (HPD), 212-863-5176


HPD, HDC JOIN SoBRO AND PARTNERS FOR THE RIBBON-CUTTING OF A NEW 64-UNIT BRONX DEVELOPMENT

The new mixed-income development won the NYC Brownfield Partnership’s 2012 Affordable Housing award for the site’s notable remediation work and design   

New York, NY - The New York City Housing Development Corporation (HDC), and its sister agency, The NYC Department of Housing Preservation and Development (HPD), joined the South Bronx Overall Economic Development Corporation (SoBRO), and partners for the ribbon-cutting ceremony of 1800 Southern Boulevard. The new mixed-income development was built upon an underused brownfield lot and adds 64 units of low- and moderate-income housing to the Crotona Park East neighborhood in the Bronx. Also in attendance at the grand opening were Bronx Borough President Ruben Diaz, Jr., New York City Council Member Joel Rivera and Community Board 3 District Manager, John Dudley. 

1800 Southern Boulevard Apartments was built under Mayor Michael R. Bloomberg’s New Housing Marketplace Plan (NHMP). The NHMP is a multi-billion dollar 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 over 130,606 units of affordable housing across the five boroughs with 40,243 units in the Bronx. 6,271 units are located in Community Board 3. 

“We are committed to creating safe and clean neighborhoods for New Yorkers to call home. Often one major challenge in new construction is the procurement of available unused land,” said HPD Commissioner Mathew M. Wambua. “This is why we need creative and committed partners to remediate brownfield locations like 1800 Southern Boulevard so that families can call beautiful new buildings their home. I want to thank SoBRO, HDC and all partners who made this building and these new homes a reality for this community.” 

 “This development exemplifies the power of possibility when a bleak circumstance is met with the proper resources and true dedication,” said HDC President Marc Jahr. “Our partnership has transformed the site of an old gas station to brand new, safe and affordable homes for families. We can now look forward to the future of this neighborhood. HDC and HPD are committed to providing sustainable and affordable housing opportunities for the benefit of hardworking New Yorkers. We are not just celebrating the grand opening of 1800 Southern Boulevard Apartments, but celebrating this building as a vital component to this community.” 

“We are tremendously excited about the opening of Crotona Park Apartments, which will not only bring value to our neighborhood but will also address the dearth of affordable housing in the Bronx, said  Phillip Morrow, SoBRO President and CEO. “Furthermore, we are proud that the project includes NYSERDA-approved green design features that allow the building to achieve high levels of energy efficiency. Many thanks to our partners who made this project possible.” 

Located at the intersection of Boston Road and Southern Boulevard, the seven-story masonry elevator building has 64 apartments: 18 studios, six one-bedroom units and 40 two-bedroom units serving tenants who earn between 60% of the Area Median Income (AMI) ($46,080 for a family four) and 80% AMI ($61,450 for a family four), according to HUD’s 2009 Average Median Income. The project includes 13,591-square-feet of commercial space and 2,239-square-feet of community facility space. The residential lobby is on the ground floor and residential units will be on floors two through seven. 

1800 Southern Boulevard’s financial structure was designed to bring economic diversity to the Crotona Park East neighborhood.  While most of new South Bronx developments have been entirely low-income, or not higher than 60% AMI, many of the rental units at 1800 Southern Boulevard are reserved for moderate-income (households. By creating a more economically diverse population, the City hopes to leverage private sector investment that will spur the revitalization of the neighborhood around Crotona Park East. Other recent moderate-income projects in the Crotona Park neighborhood include 850 Jennings Street, a 103-unit development and 870 Jennings Street, which contains 84 affordable units. As with all newly constructed NHMP developments, apartments are allocated according to a lottery run by the developer or not-for-profit partner and closely monitored by HPD and HDC. For information on available affordable units, please visit http://www.nyc.gov/html/hpd/html/home/home.shtml. 

“Moderate-income residential homes are not always readily available for striving families especially in the heart of the Bronx but the ability to recover a vacant brownfield lot is a tremendous benefit for our community and the 64 families that will soon become residents here.  As the Councilman of the 15th Council district, I was able to secure $500,000 for this housing project and thus help contribute to the increasingly attractive transformation of the Crotona Park East Area,” said Councilman Joel Rivera. 

The $22.7 million development was funded through public and private partnerships.  HDC provided $6.8 million in recycled tax-exempt bonds and a $5.4 million subordinate loan from cash reserves to finance construction. HPD contributed $4.8 million in City Capital funds. Councilmember Joel Rivera issued $500,000 in Reso A funds and the Bronx Borough President also issued $600,000 in Reso A funds. J.P. Morgan Chase Bank provided the letter of credit. 

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 About the NYC Housing Development Corporation (HDC): 

HDC builds and strengthens neighborhoods. Since 2000, the corporation has issued roughly 10% of all the multifamily housing revenue bonds in the U.S. and since 2003, when Mayor Bloomberg’s New Housing Marketplace Plan was launched, HDC has raised more than $6.7 billion in financing for affordable housing developments, including in excess of $1 billion in subsidy from corporate reserves. In fact, in Affordable Housing Finance magazine’s annual listing of the nation’s top ten funders of multifamily housing, HDC, the only municipal entity included on the list, consistently bests many of the largest commercial banks and most statewide programs. This past year, HDC was the fourth largest affordable housing lender in the U.S. after Citi, Wells Fargo and Bank of America, beating out JPMorgan Chase and Capital One.  To date, under the Mayor’s plan, HDC has financed the creation or preservation of more than 60,000 affordable units in multifamily buildings that also include 1.7 million square feet of commercial space.  For additional information, visit: www.nychdc.com 

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.

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