pr_08-15-2018

MORE THAN 650 AFFORDABLE APARTMENTS PRESERVED IN HIGH-COST NEW YORK CITY NEIGHBORHOODS

New 40-Year Affordability Agreements with HPD and HDC will Prevent Section 8 Properties from being converted to Market-Rate Housing

NEW YORK - The New York City Department of Housing Preservation and Development (HPD) and New York City Housing Development Corporation (HDC) join LIHC Investment Group to announce the preservation of 669 units of project-based Section 8 housing in high-cost New York City neighborhoods where the majority of similar buildings have converted to market-rate. This preservation is made possible through tax-abatements under Article XI and new 40-year regulatory agreements with the City of New York covering six different properties in Inwood, Hamilton Heights, Harlem, Williamsburg and the Lower East Side.

The agreements were reached through Mayor de Blasio’s Housing New York Plan, which outlines commitments to protect affordable housing and created policies and programs intended to fight displacement.   

“Preserving the existing affordable housing stock that so many hard-working families depend on is a key pillar of the Mayor’s Housing New York plan, and a victory for both residents and neighborhoods that benefit from the stability that comes from extended affordability.  Now, more than 650 households across the city can rest assured that, despite rising costs, they can afford to remain in their homes for years to come,” said HPD Commissioner Maria Torres-Springer. “I thank the team at LIHC Investment Group and our many partners in the community who are working toward a more affordable and equitable New York City.”

“These projects exemplify the Administration’s efforts to combat displacement and ensure the affordability and diversity of our city’s neighborhoods.  HDC is proud to join HPD and LIHC to announce the financing of necessary repairs at these 669 apartments in communities stretching from Upper Manhattan to Williamsburg, Brooklyn and to keep them affordable for at least another generation,” said HDC President Eric Enderlin.

“This deal will preserve existing affordable housing in neighborhoods where it is under the greatest threat, and we are proud to provide residents with an improved living environment, stable housing, and peace of mind far into the future," said Andrew Gendron, Principal, LIHC Investment Group. “In the near term, we plan to secure Article XIs for nine additional properties under our ownership, bringing the total number of units preserved to more than 1,850. I especially want to thank the leadership and staff at HPD and HDC for seeing these transactions through to fruition and for being such proactive and supportive partners.”

Currently, the six properties are 100 percent occupied. As units become vacant over the 40-year term they will be reserved for low income families, with 20 percent set aside for homeless individuals and families. Additional details on each transaction are listed below.

  • La Cabana Houses is located at 391 Lorimer Street in Williamsburg, Brooklyn, and contains 167 project-based Section 8 units. All units will be maintained as affordable to tenants whose annual income does not exceed 50 percent of AMI. LIHC and its partners plan to complete more than $7 million in capital improvements over time at the property, ranging from façade repair and roof replacement to upgrading common areas, kitchens and baths; new flooring, doors, and hardware throughout; LED lighting, and other non-critical repairs.
     
  • Lower East Side I & II Apartments are located at 384 East 10th Street and 199 Avenue B in Manhattan. Lower East Side I contains 152 project-based Section 8 units, while Lower East Side II contains 91 project-based Section 8 units. All units will be maintained as affordable to tenants whose annual income does not exceed 50 percent of AMI. Co-owners LIHC and Center Development Corporation will execute approximately $7 million in capital improvements including installing new kitchen countertops and appliances; bathroom fixtures, tile floors, and fittings; laminate wood flooring, doors and lighting in all apartments.
     
  • Hudson Piers II is located at 1640 Amsterdam Avenue in the Hamilton Heights neighborhood of Manhattan and contains 83 project-based Section 8 units. All units will be maintained as affordable to tenants whose annual income does not exceed 80 percent of AMI. Additionally, the property is being refinanced through a HUD 223(f) loan and will secure a 20-year post-rehab HAP contract to facilitate nearly $2 million in capital improvements, including new kitchens, granite countertops, and bathrooms in all apartments; common area upgrades such as LED lighting; and ensuring ADA compliance. Scott Jaffee's Metropolitan Realty Group is a partner on this project.
     
  • The Paul Robeson Houses is located at 1990 Adam Clayton Powell Jr Blvd in Harlem and contains 81 project-based Section 8 units. All units will be maintained as affordable to tenants whose annual income does not exceed 80 percent of AMI. This property was purchased in June 2018 by LIHC Investment Group for $17 million. The Article XI will allow ownership the cash flow to make critical repairs and complete ongoing façade work.
     
  • Inwood Houses is located at 10 Post Avenue in Upper Manhattan and contains 95 units project-based Section 8 units. All units will be maintained as affordable to tenants whose annual income does not exceed 80 percent of AMI. In this case, the Article XI will generate the necessary cash flow to complete capital improvements to both apartments and common areas.
     

“In districts like mine, it is becoming increasingly difficult to obtain and retain decent affordable housing,” said Council Member Antonio Reynoso. “Thanks to the agreement reached between my office, LIHC, HPD and HDC, 167 units in Williamsburg’s La Cabana Houses will be guaranteed to remain affordable for low-income residents for the next 40 years. La Cabana tenants will now be able to stay within their community and homes for generations to come without fear of displacement.  I look forward to continuing to collaborate with the City to leverage opportunities for low-income housing in my district and citywide.”

“As our city continues to struggle with an historic affordability crisis, every single unit of affordable housing matters,” said Council Member Mark Levine. “I’m incredibly proud that through working with LIHC and HPD, we were able to secure an article XI abatement for the Hudson Piers II at 1640 Amsterdam Avenue in my district. This will not only preserve 83 units of affordable housing in our Upper Manhattan community, but bring in $2 million of sorely needed capital improvements to Hudson Piers II. I’m grateful to the building owners for their eagerness to working with the City to come to this new agreement to help preserve the affordability of these units and protect the tenants who call them home.”

“I’m happy to have worked with LIHC Investment Group, HPD, and HDC to keep Paul Robeson Houses affordable,” said Council Member Bill Perkins. “Paul Robeson is one of the unsung heroes of our time and the first African American to play the lead Othello on Broadway, so it’s fitting that a building named in his honor will continue to serve the Harlem community. I look forward to working with the city and private property owners throughout my district to find creative solutions to preserve our existing stock of affordable housing.”

“Ensuring that we create, preserve and protect affordable housing is essential to keeping hardworking families in their homes and building a city for all New Yorkers,” said Council Member Ydanis Rodriguez. “The 95 affordable units preserved at Inwood House represent 95 families that will continue to afford their home, and better provide for themselves and those around them.”

###

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 fulfilling Mayor de Blasio’s Housing New York Plan which was recently expanded and accelerated through Housing New York 2.0 to complete the initial goal of 200,000 homes two years ahead of schedule—by 2022, and achieve an additional 100,000 homes over the following four years, for a total of 300,000 homes by 2026. 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.

The New York City Housing Development Corporation (HDC) is the nation’s largest municipal Housing Finance Agency and is charged with helping to finance the creation or preservation of affordable housing under Mayor Bill de Blasio’s Housing New York plan. Since 2003, HDC has financed more than 150,000 housing units using over $21.2 billion in bonds and other debt obligations and provided in excess of $1.9 billion in subsidy from corporate reserves. HDC ranks among the nation’s top issuers of mortgage revenue bonds for affordable multi-family housing on Thomson Reuter’s annual list of multi-family bond issuers. In each of the last five consecutive years, HDC’s annual bond issuance has surpassed $1 billion. For additional information, visit: http://www.nychdc.com.

LIHC Investment Group holds an ownership interest in more than 37,000 units nationwide and is ranked No. 2 in the country on Affordable Housing Finance Magazine’s list of companies completing substantial rehabilitations. Last year, LIHC, Belveron Partners and Camber Property Group embarked on the preservation of one of the largest remaining Mitchell-Lama complexes in the Bronx, Stevenson Commons. At a total development cost of nearly $130 million, the ownership is completing a major rehabilitation of the nine building, 948-unit property. Founded in Portland, Maine more than 25 years ago, today LIHC is managed by Charlie Gendron and Andrew Gendron. To learn more, visit: https://lihc.com/.