77 New Permanently Affordable Units Will Be Created for Low-Income Tenants at
500 West 30th Street Through The City’s Inclusionary Housing Program
Over 6,900 Affordable Units Now Financed For FY 2012 on Way To Goal of 14,500 Units
NYS Homes and Community Renewal (HCR) Commissioner/CEO Darryl C. Towns, NYC Department of Housing Preservation and Development (HPD) Commissioner Mathew M. Wambua, and Bruce A. Beal, Jr., Executive Vice President of Related Companies announced that today they have closed on $240 million in construction financing for the 500 West 30th Street development. Located near the High Line, 500 West 30th Street will bring a total of 386 units to the Chelsea neighborhood of Manhattan, including 77permanently affordable units created through the City’s Inclusionary Housing program which will be reserved for low-income tenants. The project, which is being developed by Related Companies and Abington Properties, will include amenities such as a health club, party rooms and outdoor space for use by all tenants.
The permanently affordable units that will be created at 500 West 30th Street are part of 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 the close of Fiscal Year 2014. For every dollar invested by the City, the NHMP has leveraged $3.41 in private funding, amounting to a total commitment to date of more than $19.4 billion to fund the creation or preservation of over 130,770 units of affordable housing across the five boroughs. More than 44,250 units have been financed in Manhattan.
“We are determined to find innovative and dynamic ways to incorporate new affordable housing units into the fabric of New York City. HPD’s Inclusionary Housing program allows us to create apartments that are permanently affordable, ensuring that hardworking New Yorkers will always have a presence, a voice and a place to call home in this community,” said HPD Commissioner Mathew M. Wambua. “I thank HCR and Related Companies for the part they played in making this possible and I look forward to seeing this development built and occupied.”
“Under Governor Andrew Cuomo’s leadership, the state is proud to have made the bond and low-income housing tax credit investments in a project that will give low-income families the opportunity to live in affordable homes in one of Manhattan’s fastest-growing residential neighborhoods,” said Darryl C. Towns, Commissioner/CEO of New York State Homes and Community Renewal. “These innovative, architecturally striking, mixed-income multifamily developments will help grow the community, grow the economy and grow jobs.”
Bruce A. Beal, Jr., Executive Vice President of Related Companies said, “Related is proud of its 40 year commitment to affordable housing and pleased to partner with the HPD and the City of New York to create 77 new units of affordable housing at 500 West 30th Street adjacent to the High Line. Under the leadership of Mayor Bloomberg, HPD Commissioner Wambua and the City continues to deliver on their pledge to create and preserve affordable housing throughout the City.We are glad to be able to play a role.”
When complete, 500 West 30th Street will be 32 stories tall with a total of 386 apartments. The 77 permanently affordable apartments will be available to low-income families. Twelve units at 500 West 30th Street will be reserved for families and individuals earning not more than 40 percent of the Area Median Income (AMI), or what is equivalent to a household income of $33,200 for a family of four. Sixty-five of the apartments will be available for low-income families earning not more than 50 percent of the Area Median Income (AMI), or what is equivalent to a household income of $41,500 for a family of four. The unit distribution will include 27 studios, 32 one‐bedroom apartments, and 18 two‐bedroom apartments. It is anticipated that construction will be complete in early 2014 and the project will create 300 construction jobs and 25 permanent jobs.
The total development cost for the 500 West 30th Street project is approximately $240 million. The project will be financed with $188.4 million in tax exempt and/or taxable bonds provided by the New York State Housing Finance Agency (HFA), an agency within New York State Homes and Community Renewal (HCR). Additionally the project will receive an estimated allocation of $11.28 Million in Low Income Housing Tax Credits from HFA.
In addition to the affordable residential component, the 500 West 30th Street development will include approximately 7,293 square-feet of new retail space, a 17,131 square-foot parking garage for 78 vehicles on the ground and second floor. It will also feature parking for approximately 194 bicycles to promote healthy lifestyles. Residents will have access to outdoor roof decks on the 6th and 29th floors. For a nominal fee, residents will have access to an onsite health club and party rooms on the ground floor.
Traditionally the months of May and June are the busiest for the affordable housing industry – bankers, developers and staff work to ensure that financing transactions for the construction or preservation of affordable housing projects are complete before the City’s fiscal year comes to a close at 12:00 midnight, June 30th. In the current fiscal year (FY 2012), staff has closed financing on 6,600 units to date; on theway to reaching the FY 2012 goal of 14,500 units.
Along with more traditional incentives and financing packages designed to create and preserve affordable housing, the Administration focused on finding new land for affordable projects and harnessing the private market to create affordable housing. The Inclusionary Housing program is designed to preserve and promote affordable housing within neighborhoods where zoning has been modified to encourage new development. In areas where the Inclusionary Housing Program is applicable, a zoning bonus allows increased floor area for multiple dwelling developments in return for the new construction, substantial rehabilitation, or preservation of permanently affordable housing. For more information on Inclusionary Housing, visit http://www.nyc.gov/html/hpd/html/developers/inclusionary.shtml
HPD requires that subsidized apartments be rented through an Open Lottery System to ensure fair and equitable distribution of housing to eligible applicants. Marketing of the apartments and the application process for the Lottery typically begin when construction is approximately 70 percent complete. The application process for 500 West 30th Street is currently not open. For more information regarding the lottery process, current housing lotteries, how to apply to an open lottery, and if you would like to receive an e-mail when HPD has updated its website concerning available apartment and home listings for City-subsidized housing in the five boroughs, please visit the Apartment Seekers and Homebuyers pages at 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 130,770 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. Since the plan’s inception, HPD and HDC have financed the creation or preservation of more than 130,700 affordable homes. To read more about the NHMP, please visit: http://www.nyc.gov/html/hpd/html/about/plan.html
About New York State Homes and Community Renewal (HCR):
New York State Homes and Community Renewal (HCR) consists of all the State's major housing and community renewal agencies, including the Affordable Housing Corporation, the Division of Housing and Community Renewal, the Housing Finance Agency, State of New York Mortgage Agency, Housing Trust Fund Corporation and others. The Housing Finance Agency offers financing to for-profit and not-for-profit developers to build affordable housing and preserve existing affordable housing.For more information, visitwww.nyshcr.org
About Related Companies:
Related Companies is one of the most prominent privately-owned real estate firms in the United States. Formed 40 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, Abu Dhabi and Shanghai 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. For more information about Related Companies please visit www.related.com.