HDC Joins The Arker Companies, HUD & Partners To Celebrate The Preservation Of Concord Seaside Apartments
$84.1 Million Renovation Upgrades 431 Apartments in Three Buildings While Keeping the Homes Affordable Over the Next 30 Years
Staten Island, New York – Representatives from the New York City Housing Development Corporation (HDC) and The Arker Companies were joined by the U.S. Department of Housing and Urban Development (HUD), Wells Fargo, Freddie Mac and Councilmember James S. Oddo, for the ribbon-cutting ceremony of Concord Court and Seaside Apartments, located in the Park Hill and Fort Wadsworth neighborhoods of Staten Island. The 431 apartments in the occupied complex will remain income-restricted over the next 30 years. The renovations include the use of new green technologies.
Concord Seaside Apartments was rehabilitated under Mayor Michael R. Bloomberg’s New Housing Marketplace Plan (NHMP). The NHMP is a multi-billion dollar initiative to finance 165,000 units of affordable housing for half a million New Yorkers by 2014. To date, the plan has funded the creation or preservation of more than 130,606 units of affordable housing across the five boroughs with 1,536 units in Staten Island. Almost a third of these are in Community Board 2, with 563 units.
“The renovation and preservation of Concord Seaside has breathed new life into this development,” said HDC President Marc Jahr. “As a result of this complex transaction, these homes will remain affordable over the long term, and because of our commitment to upgrading systems with green features and technologies, the tenants will benefit from lower energy costs, which will in turn reduce the operating costs for these buildings. We are proud to continue our strong partnership with The Arker Companies, Wells Fargo, Freddie Mac, NYSERDA, and our sister agency, HPD”
”Our City’s multi-family housing is a precious resource and preserving it as affordable and in good condition is a central mission of ours,” said Commissioner Mathew M. Wambua of the City’s Department of Housing Preservation and Development. “Most of the work we undertake under the Mayor’s New Housing Marketplace Plan is connected with preservation of existing units; in doing this work we are improving tenants’ living conditions and helping to keep neighborhoods, which could be affected in a deleterious manner, as stable, inviting communities.”
“The preservation of Concord Court and Seaside Apartments as quality affordable housing demonstrates what can be accomplished when government and the private sector work together,” said HUD Acting Regional Administrator Mirza Orriols. “This is especially impressive given the fragility of the housing market and the scarcity of credit. I applaud the Arker Companies, Wells Fargo, Mayor Bloomberg and HDC, Freddie Mac and NYSERDA for answering the call to preserve the ever-growing need for affordable housing throughout the five boroughs. I am proud of HUD’s investment and congratulate all our partners who have made this possible.”
Concord Court has 156 units; 33 are one-bedrooms, 81 are two-bedroom units, and there are 41 three-bedroom units. One two-bedroom apartment is reserved for the Superintendent. There is also a community room. Seaside Plaza is made up of two buildings with 275 units including 72 one-bedroom units, 176 two-bedroom units, 25 three-bedroom units, a two-bedroom Superintendent’s unit and one community room. For new tenants moving in, apartments are available to households earning up to 60% of the Area Median Income (AMI), currently $46,080 for a family of four.
Daniel Moritz of The Arker Companies said: “We are pleased to re-open the doors to Concord Court and Seaside Plaza as part of our firm’s continued effort to preserve New York City’s affordable housing stock. We thank Mayor Bloomberg and the elected officials, as well as HPD, HDC, HUD, Freddie Mac, NYSERDA and Wells Fargo for their continued partnership.”
The rehabilitation work included the extensive repair and improvement of each building's major systems, apartment interiors, masonry repairs, elevator and security upgrades. During the upgrades, tenants were able to remain in place, ensuring that disruptions to their daily routines were kept to a minimum. Concord Court and Seaside Plaza participated in NYSERDA’s Multifamily Performance Program (MPP). The program is designed to improve building performance using proven technologies and advances in building science. Through this program the buildings both received energy efficient boiler and water heaters, Energy Star qualified products and appliances, high efficiency lighting and other green features. The renovations also included the installation of cogeneration plants. The new on-site plants generate electricity while making use of the heat created during the process to minimize waste. The green technology is called Combined Heat and Power (CHP) Technology.
“NYSERDA is pleased to continue our partnership with Arker Companies and appreciate their dedication to sustainable housing and energy efficiency,” said Francis J. Murray Jr., President and CEO of NYSERDA. “The Concord Apartments and Seaside Plaza are among the first buildings to complete NYSERDA’s recently enhanced Multifamily Performance Program (MPP). These energy efficiency projects are expected to enable the Concord Apartments and Seaside Plaza to meet their aggressive consumption reduction targets of 22% and 15%, respectively, exceeding MPP goals.”
Councilman Oddo said, “Investments made on Staten Island end up improving the quality of life for Staten Islanders. Here is an example of a private-public investment that will do just that.”
The total development cost for Concord Seaside was $84.1 million. The rehabilitation was financed with a $52.6 million HDC First Loan. The tax-exempt bond portion of the loan is supported by Freddie Mac. The development also received $24 million in Low Income Tax Credits. NYSERDA provided $841,440 in incentives for energy efficiency measures. The New York City Department of Housing Preservation & Development (HPD) contributed a partial 420-c tax exemption."
The apartment communities have been beautifully renovated and continue to offer affordable rents at a place that residents can be proud to call home,” said Christine Kaufman, Director of Multifamily Affordable Housing for Freddie Mac. “I applaud the Arker Companies and all the organizations who worked together to provide $52.7 million in bonds under the Treasury Department's New Issue Bond Program, as well as tax credit equity and other subsidies totaling $80 million in total investment to preserve affordable, quality housing in Staten Island."
"Wells Fargo feels very fortunate that The Arker Companies continues to partner with them for their financing, in a product type that we strongly believe in," said Matthew Wiener, Managing Director in Wells Fargo Multifamily Capital at Wells Fargo. "We are committed to being a market leader by both purchasing tax credits and providing permanent debt and construction financing in the affordable space, and we are excited to be a part of this important project."
About Mayor Michael R. Bloomberg’s New Housing Marketplace Plan (NHMP): 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. Since the plan’s inception, more than 130,600 affordable homes have been created or preserved. The Plan has been recast to maintain production momentum while confronting head-on the economic challenges facing the City, the State, the housing industry, the financial sector and individual New Yorkers and their families. In order to fulfill the NHMP goal of 165,000 units, HPD and the 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
About the NYC Housing Development Corporation (HDC): HDC helps to build and strengthen neighborhoods. Since 2000, on behalf of New York City, the corporation has issued roughly 10% of all the multifamily housing revenue bonds in the U.S. and since 2003, when Mayor Bloomberg’s New Housing Marketplace Plan was launched, HDC has raised more than $6.7 billion in financing for affordable housing developments, including in excess of $1 billion in subsidy from corporate reserves. In Affordable Housing Finance magazine’s annual listing of the nation’s top ten funders of multifamily housing, HDC, the only municipal entity included on the list, consistently bests many of the largest commercial banks and most statewide programs. This past year, HDC was the fourth largest affordable housing lender in the U.S. after Citi, Wells Fargo and Bank of America, beating out JPMorgan Chase and Capital One. To date, under the Mayor’s plan, HDC has financed the creation or preservation of more than 60,000 affordable units in multifamily buildings that also include 1.7 million square feet of commercial space. For additional information, visit: www.nychdc.com
About the NYC 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. It is responsible for implementing Mayor Bloomberg’s New Housing Marketplace Plan to finance the construction or preservation of 165,000 units of affordable housing by 2014. Since the plan’s inception, more than 130,606 affordable homes have been created or preserved. For more information, visit www.nyc.gov/hpd
About The Arker Companies: The Arker Companies has been building projects in New York City for more than 30 years. Located in Floral Park on Long Island, the development company contracts, owns, and manages multi-family and single-family housing, and retail and office projects. It is one of the leading developers of affordable housing in New York in its building of more than 5,000 units, for rent and for sale. Arker also develops market-rate, commercial and mixed-used projects. Company principals are Sol, Allan and Alex Arker and Daniel Moritz.
About Wells Fargo: Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.3 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com), and other distribution channels across North America and internationally. With more than 270,000 team members, Wells Fargo serves one in three households in America. Wells Fargo & Company was ranked No. 23 on Fortune’s 2011 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.
About the New York State Energy Research and Development Authority (NYSERDA): NYSERDA, a public benefit corporation, offers objective information and analysis, innovative programs, technical expertise, and funding to help New Yorkers increase energy efficiency, save money, use renewable energy, and reduce their reliance on fossil fuels. NYSERDA professionals work to protect our environment and create clean-energy jobs. NYSERDA has been developing partnerships to advance innovative energy solutions in New York since 1975.
About Freddie Mac: Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters. For more information, visit www.FreddieMac.com.
Contact: Christina Sanchez, HDC (212) 227-2644