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HDC Press Releases
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HDC PROGRAM FINANCES DEVELOPMENT
OF NINETY MIDDLE-INCOME
UNITS IN THE BRONX
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New Construction in Kingsbridge Demonstrates Flexibility and Breadth of New HOP
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New York, NY, December 17, 2001
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BRONX -- New York City Housing Development Corporation (HDC) President Russell A. Harding and HDC Chairman and Commissioner of the New York City Department of Housing Preservation and Development (HPD) Jerilyn Perine cut a ribbon today at the opening of Putnam Gardens, a privately developed new construction project financed through HDC's New Housing Opportunities Program (New HOP).
Constructed on a previously vacant lot, Putnam Gardens contains ninety units affordable to middle-income New Yorkers. There are thirteen one-bedroom units with an average monthly rent of $921 and seventy-seven two-bedroom units with an average monthly rent of $1,069. The development also contains more than 3,300 square feet of medical office space on the ground floor as well as fifty-two indoor parking spaces at the basement level.
"With the completion of Putnam Gardens, we can add Kingsbridge to the long list of neighborhoods across the City that have seen the beneficial effects of New HOP," said HDC President Harding. "In the Rockaways, in Prospect Heights, in East Harlem and Fort Greene, HDC has financed the type of affordable, middle-income housing projects that the City needs to keep its neighborhoods vital and livable for its hard-working citizens."
Conveniently located near major transportation routes including the IRT subway line and the Major Deegan Expressway, Putnam Gardens features a tiled lobby with secured access, elevators with access to the below-ground parking garage, a first floor laundry, and two separate community rooms. Units feature hard wood floors, tiled kitchens and bathrooms, large closets, and separate heating and air conditioning units in each room. Putnam Gardens is located just a few blocks south of Van Cortlandt Park.
"This is an example of how we've been able to use the tools that HDC, the most creative housing finance agency in the country, brings to bear on some of the most intractable problems in our city," said HPD Commissioner and HDC Chairman Jerilyn Perine. "With the resources of HDC, we're able to build housing in neighborhoods such as Kingsbridge that suffered from the disinvestment in real estate in the 1970's and early 1980's."
"It is essential that we build affordable housing for middle-class, working people in our neighborhoods," said Councilwoman June Eisland. "New HOP is a great program, and I'm pleased to take part in this dedication ceremony."
The project is owned and was developed by Putnam-Deegan, LP, whose principals are Steve Zervoudis and John and Steve Varkaris. Mr. Zervoudis, who has been in the housing development business for twenty years, has constructed 5,000 units of housing. The Varkaris Family has developed 800 units of housing. This is the first project completed by Mr. Zervoudis and Mr. Varkaris that received financing from HDC.
"Putnam Gardens is significant because it is the first middle-income rental apartment building constructed in this community in over twenty years," said Steve Zervoudis. "There is a huge demand for rental apartments like these and the New Housing Opportunities Program makes it possible for developers to address this need."
A second phase of the development, which will consist of a forty-five unit building located directly across from Putnam Gardens, is scheduled to begin this month with an expected completion in the Fall of 2002. This second phase is also expected to be financed through HDC's New HOP program.
Under New HOP, HDC provides taxable bond financing to spur the development of middle-income multiple-unit housing throughout New York City. For Putnam Gardens, HDC provided a $6.87 million permanent first mortgage loan from bond proceeds and a $1.82 million second mortgage loan at below market rates from HDC's own reserves. Since the program's inception in 1998, New HOP has financed or committed to finance a total of forty projects producing more than 2,700 units of housing affordable to middle-income New Yorkers. These numbers include three developments in the Bronx containing 273 units that have been financed through New HOP.
HDC also provided the construction financing made possible through a $6.95 million Letter of Credit issued by Fleet National Bank. "Fleet is proud to have played a key role in the financing of the Putnam Gardens project which will result in quality affordable housing for moderate-income families in the Bronx," said Philip Grossman, Senior Vice President, Community Finance Group, at Fleet. "Our participation in this project supports our commitment to preserving the integrity of moderate-income neighborhoods."
HDC provides access to low cost financing for the development of low and middle-income housing. HDC financing gives developers the opportunity to create new affordable housing units throughout New York City's five boroughs.
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