December 17, 2020

NEW YORK, NY – The New York City Department of Housing Preservation and Development (HPD) today announced the award of $13.6 million in housing credits to seven developments for the creation and preservation of 583 affordable homes across the city. The tax credits will raise nearly $133 million in equity to be used for the construction on these projects with the vast majority of homes serving low-income New Yorkers. The awards benefiting six new construction projects and one preservation project will support two supportive housing developments, two senior developments, and 189 homes for formerly homeless tenants.

Consistent with the City’s commitment to allocate resources to the most vulnerable households, Fiscal Year 2021 allocations were made to two projects awarded in prior funding rounds, the Concern Pitkin Avenue supportive housing development and 811 Lexington Senior Residence. The City also utilized federal authority to extend the construction timeline on tax credit benefitting projects allocated 2018 and 2019 credits that experienced COVID-19 forced delays.

“The Low Income Housing Tax Credit program is the most powerful federal tool cities have to create and preserve affordable housing,” said HPD Commissioner Louise Carroll. “With affordable housing desperately needed throughout the city, the program is an invaluable asset to our ambitious affordable housing goals and the city’s future.”

“These tax credits will allow us to advance our continued commitment to create and preserve affordable and supportive housing stock for all New Yorkers, especially our most vulnerable," said Assemblyman Steven Cymbrowitz, Chair of the Assembly's Housing Committee. “I'm pleased that these projects will provide seniors and other New Yorkers with the ability to have safe and stable homes and remain vital and engaged members of our communities.”

"Our neighborhoods are in dire need of truly affordable housing. The development of housing complexes like the Rheingold Senior Residences project will offer housing that’s affordable to families in our community, including housing set aside for tenants who had been experiencing homelessness. I’m also thrilled that Los Sures is continuing their legacy of preserving and providing housing for our Brooklyn communities through their role in this project,” said State Senator Julia Salazar.

“My top priority as Council Member has always been the preservation and creation of deeply affordable housing in our city, and I am thrilled to see the Norfolk Street senior project move forward. I applaud Commissioner Carroll and the Department of Housing Preservation and Development’s commitment to serving low-income New Yorkers,” said City Council Member Margaret Chin.

"The Marion Creston Apartments will create 43 much needed homes in my district, providing safe, decent and attractive housing, for low income and formerly homeless people,” said City Council Member Fernando Cabrera. “The LITC program is a major asset in our 'toolbox' for solving the city's affordable housing crisis.  This new development is an asset to my district and will change the lives of many families for the better, creating a brighter future."

Housing credits are an indirect federal subsidy used to finance the development of affordable rental housing for low-income households. Each year, the IRS allocates housing tax credits to designated state agencies, who in turn distribute the credits through a competitive process to projects throughout their state. New York City receives its sub-allocation of tax credits from New York State Homes and Community Renewal, the amount of which is determined and sub-allocated annually by the State.

HPD allocates a portion of the State of New York's federal Low Income Housing Tax Credit authority - both 9 percent competitive credits and 4 percent "as-of-right" credits. During annual funding rounds, developers compete for allocations of 9 percent tax credits. Four percent tax credits are allocated on a rolling basis annually. Once tax credits are allocated to a project, the developer may sell the credits to corporate investors to generate private equity to cover a portion of development costs. This reduces the need for public subsidy. Because the debt is lower, a tax credit property can in turn offer lower, more affordable rents. The investors receive credits that reduce their corporate federal income tax bills for ten years.

Nationally, the Housing Credit and private activity tax exempt bonds are responsible for 90 percent of all affordable housing developments – supporting more than 90,000 affordable homes and nearly 100,000 jobs every year.

The recipients of the LIHTC awards for 2020 can be found on HPD Website.

Brooklyn

HELP ONE Building B. This new construction supportive housing project will be developed by H.E.L.P. Development Corporation. Of the 71 new homes, 43 are designated for formerly homeless tenants.

Rheingold Senior Residences. This new construction senior housing project will be developed by Los Sures / Southside United HDFC. Of the 94 new homes, 15 are designated for formerly homeless tenants.

Queens

Federation Nameoke Apartments. This new construction supportive housing project will be developed by the Federation of Organizations for the NYS Mentally Disabled. Of the 117 new homes, 71 will be designated for formerly homeless tenants.

TQN1003 1415 Mott Avenue. This preservation project will be developed by Metropolitan Real Estate Development. Of the 42 new homes, nine are designated for formerly homeless tenants. The award will support physical building rehabilitation to improve conditions for existing and new low-income tenants.

Bronx

Betances VI. This new construction project will be developed by a partnership consisting of Lemle and Wolff, Alembic Development and The Bridge. Of the 101 new homes, 30 are designated for formerly homeless tenants.

Marion Creston Apartments. This new construction project will be developed by NFW Marion LLC. Of the 43 new homes, 13 are designated for formerly homeless tenants. The majority of units are for low-income residents.

Manhattan 

Norfolk Street Senior. This new construction senior housing project will be developed by Gotham Real Estate Developers. Of the 115 new homes, 18 are designated for formerly homeless tenants.

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The New York City Department of Housing Preservation and Development (HPD) is the nation’s largest municipal housing preservation and development agency. Its mission is to promote quality housing and diverse, thriving neighborhoods for New Yorkers through loan and development programs for new affordable housing, preservation of the affordability of the existing housing stock, enforcement of housing quality standards, and educational programs for tenants and building owners. HPD is tasked with advancing the goals of the City’s housing plan – a critical pillar of Your Home NYC, Mayor de Blasio’s comprehensive approach to helping New Yorkers get, afford, and keep housing in these challenging times. For full details visit www.nyc.gov/hpd and for regular updates on HPD news and services, connect with us on Facebook, Twitter, and Instagram @NYCHousing.