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NYC Department of Housing Preservation & Development

FOR IMMEDIATE RELEASE
Tuesday, June 17, 2014

Juliet Morris (HPD) 212-863-5682


HPD JOINS PHIPPS HOUSES, UNIVERSITY SETTLEMENT, THE DOOR, LOISAIDA, INC. AND PARTNERS TO CELEBRATE RIBBON CUTTING AT GUT RENOVATED SUPPORTIVE HOUSING DEVELOPMENT IN THE LOWER EAST SIDE

New Mixed-Use Development Will Provide 44 Newly Renovated Affordable Apartments with Supportive Services and New Community Center Operated by Loisaida

New York, NY – The New York City Department of Housing Preservation and Development (HPD) joined Phipps Houses, University Settlement, The Door, Loisaida, Inc., and project partners today to celebrate the ribbon-cutting ceremony for the newly gut renovated, mixed-use supportive housing development at 710 East 9th Street in Manhattan. Located in Lower East Side, this formerly city-owned building now includes 44 new affordable apartments with onsite supportive services for young adults who have a history of homelessness and/or mental illness and young adults aging out of foster care who have children of their own. The building will also include a brand new 10,000 square-foot community center operated by Loisaida, Inc.

“This development is a great example of how city agencies and development partners can work together to create affordable housing for those who need it most,” said HPD Commissioner Vicki Been. “I want to acknowledge  our partnership with ACS to create more affordable and supportive housing that benefits communities and helps our young people who are most in need to achieve a stable life filled with promise and direction.  Thank you also to Phipps Houses, University Settlement, The Door, and Loisaida Incorporated for their involvement and commitment to helping these young New Yorkers gain their footing. Thank you to Bank of America, Richman Housing Partners and NYSERDA for your support.”

Raul Russi, CEO of Acacia Network, Parent Company of Loisaida Inc. stated, "Over three decades, Loisaida Inc. has provided strong culturally based programs within the Lower East Side.  Today, Loisaida Inc., returns to its original home with a strong commitment to continue to provide and preserve the organization long history in the community. We are grateful for the support of the community and our partners".

“We’re grateful to our partners and very excited to be opening this long-awaited building,” said Michael Zisser, Chief Executive Officer of The Door and University Settlement. “For over 40 years, The Door has been leading the way in providing smart, effective solutions to the issues that stand in the way of success for so many at-risk youth in New York City. With homelessness at an all-time high and a growing understanding of the perils that face young people aging out of foster care, supportive housing is a natural addition to The Door’s wide array of services – and we’re so happy to now have not one, but two facilities providing safe and stable homes for youth.”

Adam Weinstein, CEO and President of Phipps Houses stated, "Phipps Houses is pleased to have served as the housing developer for this much-needed building to provide housing and services to youth in the Lower East Side."

710 East 9th Street was originally constructed in the 1800’s as a school and later converted into a community space. For this project, the building underwent a full gut renovation that transformed the original four-story structure into a five-story affordable supportive housing development with onsite supportive services provided by The Door, a nonprofit organization that specializes providing comprehensive youth development services in a diverse and caring environment. Residents will receive supportive services that are specific to their needs including job training, High School Equivalency or ‘HSE’ (formerly GED) classes, health care, counseling, legal support, childcare support or more.

Since 1979 the building has been the home of Loisaida, Inc., a local organization with decades of experience in providing services and programs to the residents of the Lower East Side. Loisaida will return to the building as the sponsor of the new Loisaida Community Center, a multi-generational and multipurpose facility offering free services to families and youth throughout the community. Amenities include a commercial kitchen, multimedia center, and performance space. The new center builds upon Loisaida’s history of developing innovative programs in education, youth leadership, arts and culture, and community development.

The development includes 32 studio and 12 one-bedroom apartments with rents affordable to households earning up to 50 percent of the Area Median Income (AMI), or no more than $29,050 annually for an individual. A small portion of the apartments are also available to households earning up to 60 percent AMI, or no more than $34,860 annually for an individual. Residents of this development will contribute 30 percent of their monthly income towards rent. The remainder of the rent will be subsidized through HPD provided project-based Section 8. AMI income levels are set annually by the U.S. Department of Housing and Urban Development (HUD). The above AMI levels were established according to HUD’s 2012 calculations.

The total development cost of the East 9th Street development is approximately $13.8 million. Permanent financing includes approximately $428,300 in City Capital and a $5.5 million HOME loan, both provided by HPD. HPD also provided $6.9 million in 9% Low-Income Housing Tax Credits. The development received a $78,692 loan from the New York State Energy Research and Development Authority (NYSERDA). Bank of America acted as the tax credit investor and provided a bank loan of $4.1 million toward construction financing.

All apartments in the East 9th Street development are being filled via referrals from The Door, other local youth-service providers such as youth shelters or runaway drop-in centers, from the New York City Department of Homeless Services (DHS) or from the New York City Administration for Children’s Services (ACS).

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About The New York City 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. HPD is tasked with fulfilling Mayor de Blasio’s Housing New York: A Five-Borough Ten-Year Plan to build and preserve 200,000 affordable units for New Yorkers at the very lowest incomes to those in the middle class. For more information visit www.nyc.gov/hpd and for regular updates on HPD news and services, connect with us via www.facebook.com/nychpd  and www.twitter.com/nychousing.

About Phipps Houses:
Phipps Houses has developed, owned, and managed permanently affordable housing for over 100 years.  Phipps has developed nearly 8,000 units of affordable housing throughout New York City, nearly 6,000 of which it continues to own. Phipps' affiliated property management company manages over 8,200 affordable apartments encompassing nearly every Federal, State, and local housing assistance program.

About The Door:
Founded in 1972, The Door empowers educationally and economically disadvantaged youth to reach their potential by providing a complete range of services all under one roof.  Each year more than 10,000 young people from all five New York City boroughs come to The Door for primary health care, reproductive care, and health education; mental health counseling; legal services; HSE and ESOL classes; tutoring and homework help; college preparation; career development services, job training and placement; daily meals; supportive housing services; and arts, sports and recreational activities. Located in downtown Manhattan and easily accessible from all subway lines, The Door’s services are free, confidential and geared towards youth aged 12-24.

About Loisaida, Inc.:
Loisaida, Inc. began as a grassroots movement in the Lower East Side (LES) led by Puerto Rican activists and Hispanic residents in the mid 1970’s to combat the effects of rampant violence, drugs, gangs, and poverty facing neighborhood children, youth and families.  Later, in 1978 Loisaida, Inc. was formally incorporated in New York State as a local development corporation, with the mission to address the serious economic and social disenfranchisement of poor and low income Latino residents, with employment and training opportunities, comprehensive youth development initiatives, as well as neighborhood revitalization activities that positively highlighted the rich culture, heritage, and contribution of the Puerto Rican and Latin American community in this City. The new Center, builds upon Loisaida’s 36 year history of developing award winning innovative programs in education, youth leadership, arts and culture, and community development.