NYC Housing Development Corporation President Marc Jahr and executives from Related Companies today joined with residents to celebrate the acquisition, renovation and preservation of New Horizons, a 48-unit affordable housing development on 200 West 111th Street in Harlem whose rehabilitation was financed through Mayor Michael R. Bloomberg’s New Housing Marketplace Plan (NHMP), and announced that an additional 210 units in two other Manhattan properties would be preserved as affordable for an additional 35 years.
The preservation and renovation of existing affordable housing is a core goal of the Bloomberg Administration’s NHMP, an $8.5 billion initiative to create 165,000 units of affordable housing for half a million New Yorkers by the close of the 2014 fiscal year. Through the New Housing Marketplace Plan, the City and its partners have now funded the creation or preservation of 124,495 units of affordable housing across the five boroughs. To date, HDC and the City’s Department of Housing Preservation and Development have financed the preservation or new construction of 42,452 affordable units in Manhattan.
The NHMP also serves as an economic catalyst, injecting capital into distressed neighborhoods and creating jobs that advance the City’s recovery efforts. Over its full course, it is estimated that the plan would create approximately 150,000 full-time equivalent jobs in construction and related industries. To date the plan has created more than 120,000 full-time equivalent jobs.
“The City’s housing plan places great emphasis on preserving existing affordable housing” said HDC President Marc Jahr. “We do this for a good reason: keeping families in their homes has a tremendous impact on the quality of their lives and at the same time helps to stabilize neighborhoods. The developments we are announcing today are all the more remarkable for their locations. Make no mistake: all three of these properties are immensely valuable pieces of real estate. New Horizons sits at the northern end of Central Park; North Park is in a prime location on the Upper West Side; and Terrific Tenements is in the hot neighborhood of Clinton. By committing to maintain the affordable nature of these properties, which could easily have been converted to market-rate housing, Related and its partners have chosen to preserve them for the existing tenancy and the next generation to come. We’re grateful for that decision, which is good for the tenants, good for the neighborhoods, and good for the City as a whole.”
HDC provided $10.1 million in tax-exempt bonds to fund upgrades at New Horizons in exchange for Related committing to ensure affordability for an additional 35 years. At the same time, HDC and Related announced that, in exchange for funds to carry out building-wide renovations, Terrific Tenements, located at 527 West 47th Street and 425 West 48th Street, and North Park, at 20 West 102nd Street in Manhattan, would be preserved as affordable for an additional 35 years. HDC issued $25 million in tax-exempt bonds for Terrific Tenements and $36 million in tax-exempt bonds for North Park.
Bruce A. Beal Jr., Executive Vice President of Related Companies said, “For nearly 40 years, and since our very founding, Related has held a strong commitment to the preservation and revitalization of affordable housing. Affordable housing is critical for the continued growth of our city and Related is proud to have not only continued to acquire and preserve affordable housing, but to have never taken a single unit of affordable housing to market rent. We commend Marc Jahr and HDC for their critical support and leadership and are grateful to all of our partners, Wells Fargo Bank, Raymond James and Associates, and WNC and Associates, who ensured that these units can remain affordable not only for current residents, but for generations to come.”
Ivan Nieves, a long-time resident of New Horizons said, “We are thrilled that New Horizons will remain affordable for decades to come thanks to the commitment of the City of New York and Related Companies. Many of our residents have lived here for generations and the recently completed improvements will go a long way to improve the quality of life and make New Horizons an even better place to live."
Mark E. Carbone, President of Related Affordable said, “Our communities’ vitality depends on the ability of people at every income level to have a place to call home, and a place that they want to call home. Related is proud to continually invest in improvements that are not only beneficial to the physical structure of buildings, but also significantly improve the quality of life for the residents. The upgraded apartment amenities will make these properties an even better place to live and raise a family."
Raymond James and Associates served as the tax credit investor for New Horizons, providing $4 million in Low-Income Housing Tax Credit Equity. WNC and Associates, Inc. provided $7.3 million Low-Income Housing Tax Credit Equity for the rehabilitation of Terrific Tenements. Wells Fargo Bank provided $15.5 million in Low-Income Housing Tax Credit Equity for North Park and served as the lender for the three bond loans. The Metropolitan New York Coordinating Council of Jewish Poverty, a non-profit service provider and advocacy organization on behalf of the poor, will provide services to tenants at all three buildings including career services, crisis intervention, home care and legal services.
Matthew Wiener, managing director, Wells Fargo Multifamily Capital, said "Related’s execution of bringing and maintaining affordable housing in New York City is very impressive. Wells Fargo is also very committed to helping communities across the country preserve affordable housing so we are thankful for the strong relationship we’ve developed with Related, which has allowed us to help make a difference in the city."
New Horizons, a 48 unit building, is located on the northern edge of Central Park and was converted to affordable housing in 1979. Related recently acquired the property. The renovations, which cost approximately $55,000 per unit, include new bathrooms, fixtures and floors. In addition, a laundry room, community room and business center with complimentary internet service were created and the building's mechanical systems, roofs and façade have been upgraded.
Terrific Tenements is a multifamily apartment project at 527 West 47th Street and 425 West 48th Street in the Clinton neighborhood of Manhattan. It was converted to affordable housing in 1983. The affordability of its 87 units will be preserved for an additional 35 years and have already received $4.2 million in upgrades. The cost of the renovations, which include new kitchens, bathrooms, fixtures and floors as well as upgrades to mechanical systems, roofs and façade, costs approximately $47,000 per unit.
Council Member Melissa Mark-Viverito said, "The renovation and preservation of North Park Apartments is a win-win for all of the residents. I am thrilled that not only will all 123 units be preserved as affordable for another 35 years, but that the apartments will receive much-needed upgrades. I held a public meeting earlier this year with North Park residents who expressed their strong support of this plan. Efforts like these are ones that I hope to see even more of in my district so that we can continue to protect our affordable housing stock, while ensuring that these apartments are in the kind of condition that all New Yorkers deserve. I thank Mayor Bloomberg, HPD Commissioner Wambua, HDC President Jahr and Related Companies for making this preservation deal a reality."
North Park, a 123-unit Section 8 development on 20 West 102nd Street, is receiving $6.8 million in upgrades. In exchange for the low-cost financing from HDC, the complex will be preserved as affordable for an additional 35 years. Renovations costs approximately $55,000 per unit and include replacing bathroom fixtures, new kitchens, painting throughout, resurfacing and repairing floors and replacing lighting fixtures. Common element improvements include entry door replacements, intercom upgrades, fire alarm upgrades, elevator modernization, mechanical system upgrades, community room renovations and furnishings, a tenant computer lab, laundry room upgrades, lobby and hallway renovations, new trash compactor, and exterior façade and grounds repairs and refurbishing. All work will be completed by the end of this year.
All of the apartments in are set aside for tenants whose incomes are at or below 60% of the Area Median Income (AMI) for the New York City area, or $47,520 for a family of four. Additionally, all three properties benefit from project based Section 8 Housing Assistance contracts, which were extended for the longest available term of twenty years at closing. About the NYC Housing Development Corporation (HDC): The Housing Development Corporation (HDC) provides a variety of financing programs for the creation and preservation of multi-family affordable housing throughout New York City. In partnership with the NYC Department of Housing Preservation and Development, HDC works to implement Mayor Michael R. Bloomberg’s New Housing Marketplace Plan to finance the creation or preservation of 165,000 affordable housing units by the end of the 2014 fiscal year.
Since the plan launched in 2003, HDC financed more than 50,000 homes for low- , moderate- and middle-income New Yorkers. The New York City Housing Development Corporation is rated AA by S&P and Aa2 by Moody’s. About Related Companies: Related Companies is the most prominent privately-owned real estate firm in the United States.
Formed over 39 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 and South Florida 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. In 2006 Related acquired Equinox(R) Fitness Clubs, further expanding the company's capabilities into the health and fitness arena and enhancing the value of its properties by incorporating an exclusive, branded amenity into the lifestyle offering.
Related Affordable develops, acquires and preserves affordable housing throughout the nation. In the area of acquisitions and refinancing, the company pursues properties that meet one of the following criteria: Section 8 properties with project-based contracts; Section 236 properties in need of rehabilitation; Section 42 LIHTC properties with expiring low-income restrictions; Section 515 FmHA properties with loans that can be prepaid; or other assisted properties, including HODAG, HOME, federal or state-financed public housing.
Related actively looks for affordable housing opportunities through the development, acquisition and refinancing of low, moderate and mixed-income properties around the country. Since 1972, Related has developed, acquired or financed over 300,000 units of affordable housing. 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.
Through the New Housing Marketplace Plan, the City and its partners have funded the creation or preservation of more than 124,495 units of affordable housing across the five boroughs to date. The New Housing Marketplace Plan also serves as an economic catalyst, injecting capital into distressed neighborhoods and creating jobs that advance the City’s recovery efforts. Over its full course, it is estimated that the plan would create approximately 150,000 full-time equivalent jobs in construction and related industries. To date the plan has created more than 120,000 full-time equivalent jobs. In order to fulfill the NHMP goal of 165,000 units, HPD and the NYC Housing Development Corporation (HDC) are responding to market realities and focusing on three primary goals: strengthening neighborhoods, expanding the supply of affordable and sustainable housing and stabilizing families by keeping them in their homes. To read more about the NHMP, please visit http://www.nyc.gov/html/hpd/html/about/plan.shtml. ###
