HCR, HPD & HDC Join Dunn Development Corp., L+M Development Partners, Pratt Area Community Council and Partners to Celebrate the Ribbon-Cutting Of Navy Green’s First Development Phase
Brooklyn, New York – Today, New York State Homes and Community Renewal (HCR) Commissioner/ CEO Darryl C. Towns, New York City Department of Housing Preservation and Development (HPD) Commissioner RuthAnne Visnauskas, New York City Housing Development Corporation (HDC) President Marc Jahr, Dunn Development Corp., L+M Development Partners, Pratt Area Community Council (PACC), Housing Partnership Development Corporation and Brooklyn Community Housing and Services, Inc. celebrated the completion of Navy Green’s first development phase. The first phase of this development includes two mixed-income multifamily buildings and one supportive housing development with a combined total of 314 units of mixed income housing. The 103,000-square-foot site formerly known as the “Brig” was built in the early 1940s and served as a naval prison. The development of Navy Green represents a successful collaborative public-private effort, guided by the local community’s vision for the site, to transform a formerly underutilized, industrial block into a thriving, mixed-income, mixed-use development that helps meet the area’s need for affordable housing and which brings critical services to the community.
Navy Green is being developed under Mayor Michael R. Bloomberg’s New Housing Marketplace Plan (NHMP), a multi-billion dollar initiative to finance 165,000 units of affordable housing for half a million New Yorkers by the close of the 2014 fiscal year. To date, the plan has funded the creation or preservation of more than 156,397 units of affordable housing across the five boroughs, with 37,295 units in Brooklyn, and more than 3,285 of those units in Brooklyn Community Board 2 where Navy Green is located.
New York State Homes & Community Renewal Commissioner/CEO Darryl C. Towns said, “As a lifelong resident of Brooklyn, I know how important transforming the Brooklyn Navy Yard corridor has been for this borough. As part of his $1 billion House New York Program, Governor Andrew Cuomo has made the creation of affordable housing a priority. Working together with our committed partners, Dunn Development and L&M Development Partners, we now have Navy Green, a prime example of a project that can create badly-needed affordable housing, grow the economy and revitalize a local community.”
“Today we are celebrating the realization of a vision that really began ten years ago with a three-day workshop resulted in a set of planning principles, a tentative development program, and a conceptual site plan,” said HPD Commissioner Visnauskas. “There are few investments that we could have made that would mean more to any neighborhood. This first phase of the Navy Green development epitomizes a successful mutual effort by the community, developers, city agencies, and investors to transform what was a derelict, industrial block into a mixed-income, mixed-use development that helps meet the demand for affordable housing in Brooklyn.”
“From the time of the American Revolution to the recent past, this site has been part of Brooklyn’s complex fabric, yet at the periphery of its residential life”, said HDC President Marc Jahr. “It is at the periphery no more. This first phase of the stepwise, community driven rebirth of the old Navy Brig is now complete and I am proud of the part HDC has played in writing this new chapter. None of us could succeed in this effort without our committed partners—elected officials, government leaders, immensely capable, creative, and committed for-profit and nonprofit developers, and financial institutions. Most important, we have succeeded here thanks to the surrounding community’s residents, embodied in the work of PACC, in its Board and staff, who deeply care about their neighborhood.”
“The name of the project - Navy Green - integrates the ‘Navy blue’ associated with the history of the site with the sustainable green future of the project,” said Martin Dunn, president of Dunn Development Corp. “We’re excited to have converted this property from an obsolete use into a vibrant new community using the best practices of sustainable design and green construction. By combining supportive housing and affordable rental and homeownership units with market rate condos and townhouses, all sharing a common green, Navy Green is a model for mixed-income urban community development.”
“Over the past 20 years, our work in Brooklyn—in partnership with HPD—has shown us how thoughtful, sustainable, and affordable development can transform a neighborhood by bringing new economic and community development opportunities that benefit all residents,” said Ron Moelis, Chairman and CEO of L+M Development Partners. “Navy Green will not only provide hundreds of much-needed affordable units for Brooklyn residents, it will breathe new life into the area and help bring critical services to the community.”
“We are excited to celebrate the success of Navy Green and our new supportive housing residence which has become home to the most vulnerable New Yorkers – those who have suffered long term in their health and with homelessness,” said Deb Howard, Executive Director of Pratt Area Community Council. “Navy Green represents the best practices in community development and the importance of investment in housing that offers a wide range affordability and speaks to the diversity that makes up this great city.”
One of Navy Green’s multifamily buildings is located at 7 Clermont Avenue, and is a 12-story mixed-income rental building. The building includes 112 units, with 22 studios, 32 one-bedrooms, 47 two-bedrooms —one of which will be reserved for an onsite superintendent—and 11 three-bedrooms, totaling approximately 110,640-square-feet of residential floor area. The building also includes approximately 5,916-square-feet of ground floor retail/community facility space.
Twenty-one percent of the units are affordable to households with incomes at or below 40% of Area Median Income (AMI). According to HUD’s 2012 income restrictions, this is equivalent to no more than $33,200 for a family of four. Fifty percent of the units are affordable to households with incomes at or below 60% AMI, or no more than $49,800 for a family of four. Fourteen percent of the units are affordable to households with incomes at or below 80% AMI, or no more than $66,400 for a family of four; and fifteen percent of the units are affordable to households with incomes at or below 100% AMI, or no more than $83,000 for a family of four. There is also one two-bedroom apartment reserved for an onsite superintendent.
The other multifamily building located at 45 Clermont Avenue, and is an eight-story, low-income rental building. The building includes 101 units, with a mix of 33 studios, 36 one-bedrooms, and 32 two-bedrooms. This includes one superintendent’s unit. The building has a landscaped rear yard and access to the common green area that is part of the larger Navy Green project. Twenty percent of the units will be affordable to households with incomes at or below 40% of Area Median Income, according to HUD’s 2012 income restrictions, is equivalent to $33,200 for a family of four; and 80% of the units will be affordable to households with incomes at or below 60% AMI, which is equivalent to $49,800 for a family of four.
The PACC Supportive Housing building, located at 40 Vanderbilt Avenue, is a 98 unit building that provides housing and onsite services, such as access to medical care, recreation and vocational training, to formerly homeless single adults and low-income single adults through a partnership with Brooklyn Community Housing and Services, Inc. as part of the City and State's New York/New York III initiative.
The Navy Green common green is a central connection point for all buildings and forms the heart of the development. This 32,000 square foot landscaped green is open to residents and their guests from all of the Navy Green buildings and provides a beautiful shared amenity that includes active and passive recreation areas, an open lawn, a children’s play area, and plaza seating.
The final phases of development will add mixed income homeownership components to the Navy Green project. Construction is scheduled to start in December 2013 on 8 Vanderbilt Avenue and the Navy Green Townhouses. 8 Vanderbilt Avenue will be a twelve-story building consisting of 98 for-sale condominium units plus one superintendent’s apartment, with 74 units at sales prices affordable to moderate and middle-income households and 24 units sold at market rates. The building will also contain roughly 1,600 square feet of commercial/community facility space on Flushing Avenue. The Navy Green Townhouses will consist of twenty-three market rate single family homes constructed mid-block on Clermont and Vanderbilt Avenues to complete the development.
Navy Green serves as an example of high-quality, sustainable design and construction. This is the first project in New York State to be certified under the LEED for Neighborhood Development Program, achieving a Silver certification, with 45 Clermont Avenue participating in the LEED for New Construction Program. In addition, 7 Clermont Avenue and PACC Supportive Housing participated in NYSERDA's Multifamily Building Performance Program and received an ENERGY STAR designation. The energy efficient design includes high performance insulation and air sealing systems, ENERGY STAR lighting and appliances, high efficiency heating and hot water systems, low-flow bathroom fixtures and products to improve indoor air quality.
The total development cost for 7 Clermont Avenue is approximately $36.3 million. HDC provided $18.2 million in tax-exempt bonds for the construction financing portion, backed by a letter of credit provided by Chase, $6.96 million for permanent financing and $7.28 million in subsidy. Funding sources also included $5.03 million in HPD City Capital Funds and $2.29 million of HPD HOME funds. HCR provided $3.93 million in State Low Income Housing Tax Credits. JPMorgan Capital Corporation provided $13.7 million in equity generated through federal low income housing tax credits awarded by HPD.
The total development cost of 45 Clermont Avenue is $27 million. Funding sources include approximately $1.9 million of HPD HOME funds, $2.1 million of City Capital, $200,000 of Reso A from the Brooklyn Borough President’s office, tax-exempt bond financing from HDC ($13.7 million during construction and $2.5 million during permanent period) backed by letter of credit provided by Chase, $6.5 million in HDC subsidy, and $13.4 million in equity provided by JPMorgan Capital Corporation generated through federal low income housing tax credits awarded by HPD. HCR provided $3.78 million in State Low Income Housing Tax Credits. JPMorgan Chase provided more than $59 million in debt and equity financing to the Navy Green development.
“As New York’s largest bank, we are committed to investing in projects that have a sustainable and positive impact on the communities where we operate,” said Priscilla Almodovar, head of Chase Community Development Banking. “Not only has Navy Green transformed an underutilized space, it has created its own community by bringing together New Yorkers from all backgrounds to share modern amenities, while providing affordable housing and critical services to those that need it most.”
The total development cost of the PACC Supportive Housing building is $21.9 million. Funding sources include $12.2 of HPD HOME funds and $718,000 of City Capital. The Brooklyn Borough President provided $200,000 in Reso A funds. The project received $132,190 from NYSERDA’s Multifamily Performance Program, and $8.6 million of tax credit equity provided by Enterprise Community Investment, a subsidiary of Enterprise Community Partners Inc. (Enterprise).
“Navy Green not only offers hundreds of Brooklyn families with quality, safe affordable homes, but also turns an underdeveloped area into a community of opportunity, complete with supportive services, community spaces, and retail," said Shola Olatoye, vice president and New York market leader, Enterprise. "Additionally, PACC's supportive housing development will enable chronically homeless and low-income adults to have the critical tools they need to get a fresh start on life. We're proud to be a part of this project and provide $8.6 million in tax credit equity.”
The team of L+M Development Partners and Dunn Development Corp., operated as co-developers for the Navy Green project. In addition, Pratt Area Community Council (PACC) developed the 99-unit Supportive Housing building, as well serving as the community consultant on the overall Navy Green development. The design team includes master planner and architect FX Fowle Architects, Curtis + Ginsberg Architects LLP as architect, Architecture in Formation as design architect of the Supportive Housing building and Brooklyn-based Todd Rader and Amy Crews Landscape Architecture LLC as the landscape architect.
HPD hosted an International Design Workshop in December 2003 to create a vision for the redevelopment of the site. Community residents, local business and community-based organization leaders, elected officials, and staff from HPD and other City agencies participated. The three-day workshop resulted in a set of planning principles, a tentative development program, and a conceptual site plan. Following the workshop, HPD established a 14-member community task force to help the City refine the site plan, and its members approved the Request for Proposals (RFP). The task force played a critical role in the selection of the development team.
About New York State Homes and Community Renewal (HCR):
New York State Homes and Community Renewal (HCR) consists of all the State's major housing and community renewal agencies, including the Housing Finance Agency, the Affordable Housing Corporation, the Division of Housing and Community Renewal, State of New York Mortgage Agency, Housing Trust Fund Corporation and others. HCR is committed to collaborating with partners, and keeping homes affordable and communities strong by protecting one million rent-regulated units, managing a portfolio of more than 190,000 multifamily units and administering more than $1.5 billion each year to expand affordable housing opportunities and build strong communities throughout New York State.
About the NYC Housing Development Corporation (HDC):
Since 2000, HDC has issued roughly 10% of all the multi-family 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 providing 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 is the only municipal entity on the list. In 2013, HDC was the third largest affordable housing lender in the U.S. after Citi and Wells Fargo, beating out Bank of America, JPMorgan Chase and Capital One. To date, under the Mayor’s plan, HDC has financed the creation or preservation of more than 73,765 of the total 156,397 affordable units. Multifamily buildings financed by HDC contain more than 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 the end of fiscal year 2014. Since the plan’s inception, more than 156,397 affordable homes have been created or preserved. For regular updates on news and services, connect with us via www.facebook.com/nychpd and www.twitter.com/nychousing. For more information, visit our website at www.nyc.gov/hpd.
About Dunn Development Corp:
Dunn Development Corp. is a socially-conscious, award-winning real estate developer with expertise in affordable and supportive housing. The company's mission is to build the highest quality housing for low and middle-income New Yorkers. Using only the most experienced architects and general contractors, the firm has set new standards of excellence in affordable housing design and construction. To learn more about Dunn Development Corp. and all of our projects, please visit our website at www.dunndev.com.
About L+M Development Partners
Since 1984, L+M Development Partners has been an innovator in developing quality affordable, mixed-income and market rate housing, while improving the neighborhoods in which it works. A full-service firm, L+M works from conception to completion, handling development, investment, construction and management with creativity that leads the industry. L+M is responsible for more than $2.5 billion in development, investment and construction and has created more than 15,000 high-quality units in the tri-state area alone. The firm is also expanding its geographic footprint to the Gulf region and West coast. Community leaders, government officials and investment organizations turn to L+M because of its consistent track record of excellence.
L+M is a double bottom line company, where its success is measured not only in financial returns but also by the positive impact it makes. L+M takes pride in its long-standing dedication to the communities it serves, demonstrated through an annual scholarship fund, job training programs and substantial support for local nonprofits. L+M brings a superior level of commitment to its investments in developments, and equally important, to its investment in people. Additional information can be found at www.lmdevpartners.com.
About Pratt Area Community Council:
Pratt Area Community Council (PACC) is one of NYC’s leading community development corporations, with 46 years of experience in affordable housing advocacy and promoting economic and cultural diversity throughout central Brooklyn. Over the years, PACC has developed over 800 units of housing for low- and moderate-income individuals and families, and has an area of expertise in providing housing for the formerly homeless. The Navy Green Supportive Housing project is part of PACC’s larger effort to create affordable housing in the neighborhoods we serve, where rents have escalated beyond the average people’s reach. We are proud to be a part of the team to develop the Navy Green site which will benefit so many in our community. For more information on PACC, visit http://www.prattarea.org.