HPD AWARDS $14.5 MILLION IN TAX CREDITS TO CREATE NEARLY 800 AFFORDABLE HOMES ACROSS BROOKLYN AND THE BRONX
Low Income Housing Tax Credits awarded to nine developments contribute to the creation and preservation 787 affordable apartments in Brooklyn and the Bronx
NEW YORK, NY – The New York City Department of Housing Preservation and Development (HPD) Commissioner Maria Torres-Springer today announced the allocation of $14.5 million in housing credits for nine affordable housing developments in Brooklyn and the Bronx, creating and preserving nearly 800 affordable apartments for New Yorkers throughout both boroughs.
Currently, the tax reform plan being negotiated in Washington D.C. could pose significant threats to the Low-Income Housing Tax Credit program and Private Activity Tax Exempt Bonds. 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.
HPD awarded housing credits to six new construction projects and three preservation projects across eight community boards. Of the new construction projects, three will be developed with supportive housing set aside to serve formerly homeless families.
“The affordable housing crisis isn’t just an urban problem, it is a national problem that requires solutions at all levels of government. The Low Income Housing Tax Credit is one of the most powerful tools we have in this country to build and preserve affordable housing, like those dynamic projects that were just awarded 9 percent credits, as well as thousands of affordable homes financed in New York City through 4 and 9 percent credits every year,” said Housing Preservation and Development Commissioner Maria Torres-Springer. “I’d like to congratulate this year’s round of awardees for their commitment and hard work, and thank our many partners here and nationwide for fighting to save the resources we need to ensure that everyone has access to safe, good, affordable homes.”
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 allocate 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. 4 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.
The recipients of the LIHTC awards for 2017 can be found on the HPD website.
1921 Cortelyou Road: This new construction project will developed by MHANY in Community Board 14 in the Brooklyn. This project will provide 75 units of affordable housing to the neighborhood. Of those 75 units, 46 will be rented to formerly homeless families. The annual allocation is approximately $1.45 million in 2018 credits.
Debevoise Apartments: This new construction project will be developed by Arker Companies in Community Board 1 in the Brooklyn. This project will provide 64 units of affordable housing to the neighborhood. The annual allocation is approximately $1.17 million in 2018 credits.
Ryer Avenue Apartments: This new construction project will be developed by ACMH, Inc. in Community Board 5 in the Bronx. This project will provide 85 units of affordable housing to the neighborhood. Of those 85 units, 52 will be rented to formerly homeless families with mental illness. The annual allocation is approximately $2.6 million in 2018 credits.
Villa House: This new construction project will be developed by The Doe Fund, Inc. in Community Board 7 in the Bronx. This project will provide 68 units of affordable housing to the neighborhood. Of those 68 units, 41 will be rented to formerly homeless families. The annual allocation is approximately $1.4 million in 2018 credits.
Mount Hope Preservation Apartments 2A: This preservation project will be rehabilitated by Notias Development and The Mt. Hope Housing Company, Inc. in Community Board 5 in the Bronx. This project will provide 125 units of affordable housing to the neighborhood. The annual allocation is approximately $1.6 million in 2018 credits.
Aquinas Apartments: This preservation project will be rehabilitated by the Aquinas Housing Corporation in Community Board 6 in the Bronx. This project will provide 86 units of affordable housing to the neighborhood. The annual allocation is approximately $875,000 in 2018 credits.
Phoenix Estates II: This new construction project will be developed by MHANY in Community Board 2 in the Bronx. This project will provide 107 units of affordable housing to the neighborhood. The annual allocation is approximately $2.16 million in 2018 credits.
Union Avenue Cluster: This preservation project will be rehabilitated by Banana Kelly in Community Board 2 and 3 in the Bronx. This project will provide 120 units of affordable housing to the neighborhood. The annual allocation is approximately $750,000 in 2018 credits.
Bronxview at Serviam: This new construction project will be developed by Fordham Bedford in Community Board 7 in the Bronx. This project will provide 57 units of affordable housing to the neighborhood. The annual allocation is approximately $2.5 million in 2018 credits.
“There has never been a greater need for affordable housing for New Yorkers and we laud the City on its commitment. ACMH is proud to partner with HPD to help solve the affordable housing crisis,” said Executive Vice President and CEO of ACMH, Inc. Daniel Johansson.
“On behalf of the Aquinas Housing Corporation we would like to express our gratitude to have been awarded these tax credits. As a result, we will be able to preserve these affordable housing resources for the Bronx community to which we serve,” said Executive Director of AHC Steven Seltzer.
“As an organization, Banana Kelly is proud and so very pleased to be such an important part of the Mayor’s housing preservation initiatives. Four out of the five buildings approved for an allocation of 9 percent tax credits were originally developed through the city’s Strategic Initiatives Program, a program primarily targeted to homeless families. This allocation will ensure not only that we provide the buildings with needed upgrades but also ensure ongoing affordability for the residents,” said President of Banana Kelly Community Improvement Association, Inc. Harold DeRienzo. “On behalf of our board, staff and members, we thank the city and look forward to continuing our partnership with the HPD.”
“This support for The Bronxview will help create affordable housing for New Yorkers with a range of incomes at an important location in our neighborhood,” said Executive Director of Fordham Bedford Housing Corporation John Reilly.
“We at MHANY are extremely grateful and excited to receive these funds. The 9 percent tax credits will enable us to build two critical affordable housing projects in the Bronx and Brooklyn that will create deeply affordable housing for seniors, families, individuals with special needs and formerly homeless households,” said Executive Director at MHANY Ismene Speliotis. “This funding, as well as the support from the City, are the final pieces of the puzzle to make these two developments –totaling 185 apartments— a reality.”
“This 9 percent tax credit allocation is the financial cornerstone that will allow us to provide the much-needed renovations at Mount Hope Preservation Apartments 2A LLC – a six-building, 125-unit scattered-site development located in the Bronx, “ said Manager of Real Estate Development at Notias Construction, Inc. Pierre Downing. “Our team is excited to participate in such a dynamic preservation effort, which would not be possible without investment from such a forward-thinking agency in NYC, HPD, and our partnership with Mt. Hope Housing Company.”
“Every person — no matter their age, income, or health status — deserves a safe, stable place to call home. Affordable housing is the key to a happier, healthier life and the cornerstone of a thriving, vibrant community,” said Founder and President of The Doe Fund George McDonald. “We are so proud to work alongside HPD and our development partners to bring more affordable housing to the Bronx and to realize Mayor de Blasio’s vision of a more fair and equitable city for all.”
HPD awards housing credits to qualified low-income housing projects in New York City. To be eligible, developments must be substantial rehabilitation or new construction with at least 20 percent of apartments reserved for low-income households. Low-income is defined as a household with an annual income not more than 60 percent of Area Median Income (AMI), or $48,960 per year for a family of three earning. Eligible household incomes may be set lower than 60 percent AMI depending on the individual project.
These new projects are being developed under Mayor de Blasio’s accelerated housing plan, Housing New York 2.0, which will finance 200,000 affordable homes by 2022 and 300,000 by 2026, enough to house the entire population of Boston.