News Alert: November 9
Deutsche Bank Study Highlights Significant Savings from Energy Retrofits
The New York Times reports that a study examining energy retrofits to19,000 affordable housing units in New York City found "a 19 percent savings on fuel bills and a 10 percent savings on electricity across the portfolio [translating into] $240 in fuel savings and $70 in electrical savings per apartment every year."
The Deutsche Bank Americas Foundation commissioned the study in partnership with Living Cities, a consortium of 22 foundations and financial institutions. The authors of the study hope that loan underwriting will take into account projected savings from retrofit investments.
On December 8th, the New York Housing Conference will be holding a symposium focusing on this issue: "Green is the New Green: How Underwriters and the Development Community are Transforming Their View of Green Investments". This symposium is a part of its 38th Annual Awards Program line-up. Click here for more details.
News Alert: November 8
Gotham Organization Breaks Ground on Massive West Side Complex
Construction on the largest development in the history of Mayor Bloomberg's New Housing Marketplace Plan began today. The Gotham Organization is developing a 3-tower complex that will span the entire block between West 44th & West 45th Streets and 10th & 11th Avenues and consist of 1,238 apartments, 15,000 square feet of retail, 17,000 square feet of open space in addition to a new elementary school to replace PS 51. 600 of the units will be affordable to households earning between 40 percent and 165 percent of the Area Median Income (AMI) or the equivalent of $32,720 to $134,970 for a family of four.
Financing for the project comes from $520 million primarily tax-exempt bonds issued by the New York State Housing Finance Agency. The bonds are credit enhanced by a syndicate of lenders led by Wells Fargo Bank. The project also leverages $35.5 million in Low Income Housing Tax Credits.
The project was designed by the architectural firm Schuman Lichtenstein Claman and Efron and is expected to create 2,900 construction jobs.
Click here for the full press release.
News Alert: November 7
Hotel Loophole Endangers Affordable Housing Stock
NBC New York reports on a Chelsea landlord taking advantage of "an existing loophole in state housing law allows a building owner to reclaim one or more apartments, even from rent-controlled tenants, for their own use." Five tenants have been evicted by landlord Gary Brown who owns a company called Furnished Quarters and already has converted empty units in the building into hotel rooms.
Legislation to close the loophole has been proposed by Assemblyman Dick Gottfried.
Click here for the full report.
News Alert: November 4
HUD Proposes Regulatory Changes to HOME Program
In the face of recent political scrutiny of the alleged HOME Program mismanagement, the Department of Housing and Urban Development has issued rule changes that would:
•Require state and local governments to adopt policies and procedures to improve their oversight of projects, develop a system for assessing the relative risk of projects, and more closely monitor their HOME-funded sub-recipients;
•Require state and local governments to assess a developer’s capacity and the long-term viability of the project, before they commit HOME funds to a project;
•Require more frequent reporting by state and local ‘participating jurisdictions’ to enable HUD to more closely track projects once they’re under way; and
•Set a higher ‘performance bar’ by establishing specific timeframes for taking appropriate corrective actions against participating jurisdictions who fail to complete what they started.
Click here for HUD's official press release.
News Alert: November 4
F.E.G.S. Embarks on Multi-Million Dollar Renovation of Tanya Towers
Tanya Towers, a 138-unit residence on the Lower East Side that serves low-income seniors and individuals with disabilities, will be undergoing a $4.4 million renovation. F.E.G.S. Health and Human Services System, which operates the building, will be managing the project which will "include elevator modernization, boiler replacement, windows, concrete work and unit upgrades. Improvements will also include facility modifications to address the special needs of the deaf and those with other disabilities, upgrades of the gardens and community spaces, as well as taking the necessary steps to “green” the building and achieve LEED certification. "
Funding for the project comes from a $1 million capital grant from the New York City Council sponsored by Council Member Rosie Mendez, a $500,000 grant from the Office of Manhattan Borough President Scott Stringer and an additional $2.9 million in financing through the New York City Housing Development Corporation (HDC).
Click here for the full press release.
News Alert: November 3
Nassau County Breaks Ground on Affordable Homes
Affordable single-family homes will be built in Inwood for the four winners of a housing lottery held by Nassau County in April 2010. The three-bedroom, one-and-a-half baths homes will be built by the Roosevelt Development Corporation which were made affordable through grants from Nassau County and the Federal HOME Program as well as funds from the New York Homes and Community Renewal through the New York State Affordable Housing Corporation. The homes will be sold to the winners for $157,563.
Click here for the full article.
News Alert: October 21
IRS Sets LIHTC Authority and Bond Caps for 2012
Novogradac & Company reports that the IRS will calculate the states' LIHTC as the greater of $2.20 multiplied by the state population or $2,525,000 and the states' ceiling for the volume cap for private activity bonds as the greater of $95 multiplied by the state population or $284,560,000. This represents an increase over 2011.
News Alert: October 21
Galante Expected to be Named Permanent FHA Chief
According to National Mortgage News, President Obama intends to nominate acting FHA Commissioner Carol Galante for permanent placement.
Click here for the full article.
News Alert: October 20
Rep. Velazquez Introduces Job Training Bill for Public Housing Residents
Rep. Nydia Velazquez (D-NY) has introduced the Affordable Communities Employment Act (ACE Act) which would expand training programs mandated by a 1968 federal law called Section 3. The ACE Act would push public housing authorities to offer job training programs that include construction work along with clerical and managerial jobs.
In addition, New York's City Council will be holding a hearing during which NYCHA must detail the extent of its Section 3 offerings and outcomes, according to City Council member Rosie Mendez.
Click here for the NY1 report and for the New York Post blog posting concerning this issue.
News Alert: October 19
Bronx Pro Opens 103 Affordable Units in the Bronx
Bronx Pro officially opened its latest development in the Bronx. The 850 Jennings development offers 103 units affordable to households earning less than 80% of area median income. The building is comprised of 7 studios, 40 one-bedrooms, 41 two-bedrooms and 14 three-bedrooms along with an on-site gym, a bike storage room, on-site parking and an outdoor play area.
Bronx Pro partnered with Steven Winter Associates to target Gold certification as part of the LEED for Homes Mid-Rise Pilot Program. Green design features include high-efficiency boilers, solar powered hot water system, Energy Star lighting and appliances, along with the borough's first green daycare center certified through the Early Development Global Education program.
The total development cost was $25.3 million with HPD supplying approximately $5.9 million in City Capital dollars. HDC contributed a total of over $17.98 million in taxable bond proceeds and corporate reserves with JP Morgan Chase Bank as the letter of credit provider. Bronx Pro contributed approximately $1.44 million in equity to fund this development.
Click here for the full press release.
News Alert: October 18
Washington Heights Developer May Rebuff CB's Height and Affordable Housing Demands
The New York Times reports that a planned project by Quadriad Realty Partners in Washington Heights has encountered resistance from local residents and last month was rejected by the community board. At issue is the height of the four proposed towers ranging from 23 to 39 stories comprised of more than 800 apartments total.
The community board recommended that 50% of the units be affordable with the target being moderate-income households earning up to $65,421 annually as opposed to the 30% mark planned by the developer for households earning as much as $108,000.
"Despite the community board’s opposition, the developer said it planned to apply to the city’s Planning Commission for a zoning modification in the next few weeks. But if the change is not granted, the firm says it will then build two stouter, market-rate buildings, 28 and 24 stories tall, which it has the legal right to do under existing zoning."
Click here for the New York Times article.
News Alert: October 16
Four Bidders Identified for Willet Points Mega-Development
Crain's New York reports that at least four firms have come forward to bid for first phase of the Willet Points redevelopment project: Silverstein Properties, The Related Companies, TDC Development & Construction Corp., and AvalonBay Communities. First phase development is expected to create as much as 400 units of mixed-use housing, 680,000 square feet of retail space, almost 400 hotel rooms and two acres of open space.
Click here for the full article.
News Alert: October 14
Failing Yankee Parking Lots Slated for Affordable Housing Development
The Bronx Parking Development Co., which issued bonds backed by revenue from the new Yankee Stadium parking facilities, has agreed to lease two lots for affordable housing projects, according to Bloomberg News. The Yankee Stadium parking facilities are generating 28 percent less revenue than expected. "About $238 million of tax-exempt debt was sold in 2007 to build three garages, renovate two others and refurbish six parking lots near the 50,287-seat stadium, which opened in 2009."
The two lots are projected to create as much as 1,150 rental units along with 45,000 square feet of retail.
Click here for the full article.
News Alert: October 14
NYC Modernizes Project Plan Review Process
The Bloomberg Administration announced a new construction plan review process that allows for digital submission of plans and web-based consultation between city agencies and developers. The Department of Buildings' (DOB) new "Development Hub" provides licensed architects and engineers the ability to submit digital construction plans. DOB will employ large television screens, smart boards, webcams and desktop computer tablets to accelerate the review of building designs without the use of paper.
Click here for the full press release.
News Alert: October 13
NYCHA Sale of Properties Worries Local Residents
The New York City Housing Authority announced that it will be putting up for bid in less than two months two long-vacant buildings on Waverly Avenue in Brooklyn. The Pratt Area Community Council has aimed to purchase the two buildings for affordable housing purposes but the short turnaround will make it difficult for the PACC to organize the necessary subsidies to be in the position to submit its own bid.
Sheila Stainback, spokeswoman for NYCHA, is quoted as saying that "the buildings will be sold ‘as is’ to highest bidder at current market value” but she leaves open the possibility that the public auction could be cancelled if PACC presented a proposal to NYCHA to make a purchase and develop affordable housing.
Click here for the full New York Times article.
News Alert: October 12
The Arker Companies Fronts Partnership that Opens 83 Units in the Bronx
Hewitt House, an 83-unit building constructed in the Longwood section of the Bronx by The Arker Companies, was opened adding to the more than 3,700 affordable units already created or preserved in Community Board 2 as part of Mayor Bloomberg's New Housing Marketplace Plan.
"Total development cost for Hewitt is approximately $21.7 million and has provided 77 construction-related job opportunities in each year of the two-year construction period. HDC provided $11 million in tax-exempt bonds for the development’s construction, as 
well as $3.9 million for permanent financing and $4.5 million subsidy. Four percent tax credits were allocated by the NYC Department of Housing Preservation and Development (HPD)... Bank of America provided a Letter of Credit with Wells Fargo acting as the Tax Credit Investor. $4.5 million had been provided from the 421a fund which requires developers to commit to a longer term of affordability, as well as $7.6 million in Tax Credit Equity."
Hewitt House offers 11 studios, 28 one-bedrooms, 43 two-bedrooms, and one two-bedroom superintendent unit. All of the units are affordable to households earning no more than 60% of the Area Median Income. "Seventeen of the units are set aside for formerly homeless families. There is a 550-square-foot community space and 20 residential parking spaces. The development also features approximately 14,750-square-feet of ground floor commercial space."
Click here for the full press release.
News Alert: October 12
Seaway Lofts Project in Oswego Receives $1.5M Subsidy
The Seaway Lofts project, a partnership between Sutton Real Estate, Edgemere Development and the principals of Rich and Gardner Construction Co., aims to reuse the former Seaway Supply Building as affordable workforce housing. The $1.5 million subsidy from the state Housing Trust Fund/HOME and Federal Low Income Housing Tax programs will help to create 26 affordable units in the now-vacant building. Additional funding is being supplied by the Federal Home Loan Bank and various local government bodies.
Click here for the full article.
News Alert: October 10
Stalled NYC Projects Slowly Come Back Online
In November 2010, the number of stalled projects in New York City peaked but has come down about 10% since then, according to Engineering New Record/New York. The Department of Building's has been tracking these projects since 2009 and conducted over 12,000 inspections to ensure proper site management.
Despite the large number of stalled projects, very few have applied for construction permit extensions "meeting certain safety, maintenance and security conditions by up to four years". Maintenance of inactive sites can determine the costs or restarting development.
Click here for the full ENR New York article.
News Alert: October 9
Multifamily Industry Cautiously Eyes Deficit Reduction Supercommittee
HousingFinance.com details the potential impact on the multifamily industry of the Congressional supercommittee charged with reducing the federal deficit. Since "everything is on the table right now", the article outlines the discussion surrounding the LIHTC, partnership taxation, carried interest and business interest deduction.
Click here for the full article.
News Alert: October 7
Proposed Bill Extends LIHTC Eligibility to Formerly Homeless Youth
Novogradac & Company reports that legislation has been introduced that would allow formerly homeless youth to pursue higher education while retaining eligibility for low-income housing tax credit housing. The rules currently only allow single-parents, parents receiving public assistance or former foster youth to pursue a four-year education.
Click here to directly access the bill document.
News Alert: October 6
HPD Official Arrested by FBI for Alleged Kickbacks
Various news agencies are reporting that Wendell Walters, Assistant Commissioner within NYC's Housing and Preservation Department has been arrested for suspected kickbacks from several developers allegedly totalling as much as $2 million dating back to January 2000. The arrests stemmed from an FBI corruption investigation focusing on City Councilman Erik Dilan who received an affordable housing unit from developer Sergio Benitez despite exceeding income restrictions by over $40,000. Benitez was among the six developers arrested along with Walters.
A cycle of kickbacks including Walters, developers and contractors is believed to have inflated the cost of affordable housing projects, according to the FBI indictment. The indictment contends that Walters "knowingly furthered this scheme through his involvement in structuring and administering contracts".
Click here for the full article.
News Alert: October 4
Two More Firms Vying for Willet Points Project
Crain's New York reports that the City has received two additional bids to develop Phase 1 of the Willet Points area of Queens. Related Companies entered a bid in conjunction with Sterling Equities, the development firm headed by Mets owners Fred Wilpon and Saul Katz, while TDC Development entered its own bid.
Phase 1 encompasses 12.75 acres as part of a three phase project that covers up to 61.4 acres.
Click here for the full article.
News Alert: October 3
Met Council Opens 70 Units of Senior Housing in the Bronx
The Met Council opened its fifth "Tower" development - a 70-unit senior housing development in the Bronx. The Harry and Jeanette Weinberg Council Towers V (Council Towers V) project was built on formerly city-owned land in partnership with HPD and includes 21 units for formerly homeless seniors. It was built in part with $13,283,400 in funding from HUD's Section 202 program which limits tenant's rental contributions to 30 percent of household income.
The total cost of the project was $17,557,000. Additional funding sources included $1,105,000 in HOME funds from HPD and another $800,000 in Reso A funds through HPD’s Senior Housing Program. The U.S. Department of Housing and Urban Development (HUD) also contributed $286,000 in pre-development costs. Federal Home Loan Bank provided $400,000 for the construction of this development. New York State Energy Research and Development Authority (NYSERDA) contributed $150,000 to the development.
Click here for the full press release.
News Alert: October 2
Bronx Affordable Housing Projects Upsetting Car Owners
This article in Crain's New York reports on the burdens being felt by car owners on Webster Avenue in the Bronx due to development stirred by a recent rezoning. It focuses on the moderate-income 430-unit Webster Commons development being built by Jackson Development, which concedes the temporary inconvenience but counters that the project will ultimately also provide multiple new lots daily and long-term parking.
Residents are also concerned about pending state tax credit applications for a 60-unit low-income project to be built three blocks away. However Fernando Tirado, district manager of Community Board 7, "is encouraging residents to take a longer view."
Click here for the full article.
News Alert: December 13
Fed Study Cites House Flipping as Large Factor in Housing Collapse
The Federal Reserve Bank of New York has released a report that highlights rampant house-flipping as a more prominent factor in the housing market collapse than previously believed. Lax lending practices supplied cheap credit to investor home buyers who pushed up housing prices pre-collapse.
"At the peak of the boom in 2006, the New York Fed’s researchers found that over a third of all U.S. home purchase lending was made to people who already owned at least one house.
In the four states with the most pronounced boom-and-bust cycles – Arizona, California, Florida, and Nevada – the investor share was as high as 45 percent.
Overall, the investor share of mortgage-financed home purchases roughly doubled between 2000 and 2006, with the largest increases seen among those owning three or more properties, according to Fed data.
In 2006, Arizona, California, Florida, and Nevada investors owning three or more properties were responsible for nearly 20 percent of originations, almost triple their share in 2000, Fed officials report."
Click here for the full press release.
News Alert: December 13
State Housing Agencies Amend Underwriting Guidelines
Novoco.com reports that the National Council of State Housing Agencies has amended its recommended tax credit and underwriting guidelines.
Click here for Novogradac's summary document.
News Alert: December 12
Stalled NYC Projects Drop 8% Year-Over-Year
The New York Building Congress released a study of city data showing that stalled projects in New York City as of October 2011 have decreased 8% since October 2010. The nearly 640 stalled projects represent a 40% increase over 2009 and an estimated aggregate market value of $1.3 billion. A majority of the projects are multifamily and 37% of the stalled projects currently exist as vacant sites.
For the full press release, click here.
News Alert: December 6
Novogradac Releases 2012 Rent and Income Online Calculator
Novogradac & Company has announced that the 2012 version of its rent and income calculator is now available online. The calculator is programmed to process the U.S. Department of Housing and Urban Development's (HUD) 2012 rent and income limit data. Low-income tax credit rental and income limits can be obtained for every county and metropolitan statistical area.
News Alert: November 9
Deutsche Bank Study Highlights Significant Savings from Energy Retrofits
The New York Times reports that a study examining energy retrofits to19,000 affordable housing units in New York City found "a 19 percent savings on fuel bills and a 10 percent savings on electricity across the portfolio [translating into] $240 in fuel savings and $70 in electrical savings per apartment every year."
The Deutsche Bank Americas Foundation commissioned the study in partnership with Living Cities, a consortium of 22 foundations and financial institutions. The authors of the study hope that loan underwriting will take into account projected savings from retrofit investments.
On December 8th, the New York Housing Conference will be holding a symposium focusing on this issue: "Green is the New Green: How Underwriters and the Development Community are Transforming Their View of Green Investments". This symposium is a part of its 38th Annual Awards Program line-up. Click here for more details.
News Alert: November 8
Gotham Organization Breaks Ground on Massive West Side Complex
Construction on the largest development in the history of Mayor Bloomberg's New Housing Marketplace Plan began today. The Gotham Organization is developing a 3-tower complex that will span the entire block between West 44th & West 45th Streets and 10th & 11th Avenues and consist of 1,238 apartments, 15,000 square feet of retail, 17,000 square feet of open space in addition to a new elementary school to replace PS 51. 600 of the units will be affordable to households earning between 40 percent and 165 percent of the Area Median Income (AMI) or the equivalent of $32,720 to $134,970 for a family of four.
Financing for the project comes from $520 million primarily tax-exempt bonds issued by the New York State Housing Finance Agency. The bonds are credit enhanced by a syndicate of lenders led by Wells Fargo Bank. The project also leverages $35.5 million in Low Income Housing Tax Credits.
The project was designed by the architectural firm Schuman Lichtenstein Claman and Efron and is expected to create 2,900 construction jobs.
Click here for the full press release.
News Alert: November 7
Hotel Loophole Endangers Affordable Housing Stock
NBC New York reports on a Chelsea landlord taking advantage of "an existing loophole in state housing law allows a building owner to reclaim one or more apartments, even from rent-controlled tenants, for their own use." Five tenants have been evicted by landlord Gary Brown who owns a company called Furnished Quarters and already has converted empty units in the building into hotel rooms.
Legislation to close the loophole has been proposed by Assemblyman Dick Gottfried.
Click here for the full report.
News Alert: November 4
HUD Proposes Regulatory Changes to HOME Program
In the face of recent political scrutiny of the alleged HOME Program mismanagement, the Department of Housing and Urban Development has issued rule changes that would:
•Require state and local governments to adopt policies and procedures to improve their oversight of projects, develop a system for assessing the relative risk of projects, and more closely monitor their HOME-funded sub-recipients;
•Require state and local governments to assess a developer’s capacity and the long-term viability of the project, before they commit HOME funds to a project;
•Require more frequent reporting by state and local ‘participating jurisdictions’ to enable HUD to more closely track projects once they’re under way; and
•Set a higher ‘performance bar’ by establishing specific timeframes for taking appropriate corrective actions against participating jurisdictions who fail to complete what they started.
Click here for HUD's official press release.
News Alert: November 4
F.E.G.S. Embarks on Multi-Million Dollar Renovation of Tanya Towers
Tanya Towers, a 138-unit residence on the Lower East Side that serves low-income seniors and individuals with disabilities, will be undergoing a $4.4 million renovation. F.E.G.S. Health and Human Services System, which operates the building, will be managing the project which will "include elevator modernization, boiler replacement, windows, concrete work and unit upgrades. Improvements will also include facility modifications to address the special needs of the deaf and those with other disabilities, upgrades of the gardens and community spaces, as well as taking the necessary steps to “green” the building and achieve LEED certification. "
Funding for the project comes from a $1 million capital grant from the New York City Council sponsored by Council Member Rosie Mendez, a $500,000 grant from the Office of Manhattan Borough President Scott Stringer and an additional $2.9 million in financing through the New York City Housing Development Corporation (HDC).
Click here for the full press release.
News Alert: November 3
Nassau County Breaks Ground on Affordable Homes
Affordable single-family homes will be built in Inwood for the four winners of a housing lottery held by Nassau County in April 2010. The three-bedroom, one-and-a-half baths homes will be built by the Roosevelt Development Corporation which were made affordable through grants from Nassau County and the Federal HOME Program as well as funds from the New York Homes and Community Renewal through the New York State Affordable Housing Corporation. The homes will be sold to the winners for $157,563.
Click here for the full article.
News Alert: October 21
IRS Sets LIHTC Authority and Bond Caps for 2012
Novogradac & Company reports that the IRS will calculate the states' LIHTC as the greater of $2.20 multiplied by the state population or $2,525,000 and the states' ceiling for the volume cap for private activity bonds as the greater of $95 multiplied by the state population or $284,560,000. This represents an increase over 2011.
News Alert: October 21
Galante Expected to be Named Permanent FHA Chief
According to National Mortgage News, President Obama intends to nominate acting FHA Commissioner Carol Galante for permanent placement.
Click here for the full article.
News Alert: October 20
Rep. Velazquez Introduces Job Training Bill for Public Housing Residents
Rep. Nydia Velazquez (D-NY) has introduced the Affordable Communities Employment Act (ACE Act) which would expand training programs mandated by a 1968 federal law called Section 3. The ACE Act would push public housing authorities to offer job training programs that include construction work along with clerical and managerial jobs.
In addition, New York's City Council will be holding a hearing during which NYCHA must detail the extent of its Section 3 offerings and outcomes, according to City Council member Rosie Mendez.
Click here for the NY1 report and for the New York Post blog posting concerning this issue.
News Alert: October 19
Bronx Pro Opens 103 Affordable Units in the Bronx
Bronx Pro officially opened its latest development in the Bronx. The 850 Jennings development offers 103 units affordable to households earning less than 80% of area median income. The building is comprised of 7 studios, 40 one-bedrooms, 41 two-bedrooms and 14 three-bedrooms along with an on-site gym, a bike storage room, on-site parking and an outdoor play area.
Bronx Pro partnered with Steven Winter Associates to target Gold certification as part of the LEED for Homes Mid-Rise Pilot Program. Green design features include high-efficiency boilers, solar powered hot water system, Energy Star lighting and appliances, along with the borough's first green daycare center certified through the Early Development Global Education program.
The total development cost was $25.3 million with HPD supplying approximately $5.9 million in City Capital dollars. HDC contributed a total of over $17.98 million in taxable bond proceeds and corporate reserves with JP Morgan Chase Bank as the letter of credit provider. Bronx Pro contributed approximately $1.44 million in equity to fund this development.
Click here for the full press release.
News Alert: October 18
Washington Heights Developer May Rebuff CB's Height and Affordable Housing Demands
The New York Times reports that a planned project by Quadriad Realty Partners in Washington Heights has encountered resistance from local residents and last month was rejected by the community board. At issue is the height of the four proposed towers ranging from 23 to 39 stories comprised of more than 800 apartments total.
The community board recommended that 50% of the units be affordable with the target being moderate-income households earning up to $65,421 annually as opposed to the 30% mark planned by the developer for households earning as much as $108,000.
"Despite the community board’s opposition, the developer said it planned to apply to the city’s Planning Commission for a zoning modification in the next few weeks. But if the change is not granted, the firm says it will then build two stouter, market-rate buildings, 28 and 24 stories tall, which it has the legal right to do under existing zoning."
Click here for the New York Times article.
News Alert: October 16
Four Bidders Identified for Willet Points Mega-Development
Crain's New York reports that at least four firms have come forward to bid for first phase of the Willet Points redevelopment project: Silverstein Properties, The Related Companies, TDC Development & Construction Corp., and AvalonBay Communities. First phase development is expected to create as much as 400 units of mixed-use housing, 680,000 square feet of retail space, almost 400 hotel rooms and two acres of open space.
Click here for the full article.
News Alert: October 14
Failing Yankee Parking Lots Slated for Affordable Housing Development
The Bronx Parking Development Co., which issued bonds backed by revenue from the new Yankee Stadium parking facilities, has agreed to lease two lots for affordable housing projects, according to Bloomberg News. The Yankee Stadium parking facilities are generating 28 percent less revenue than expected. "About $238 million of tax-exempt debt was sold in 2007 to build three garages, renovate two others and refurbish six parking lots near the 50,287-seat stadium, which opened in 2009."
The two lots are projected to create as much as 1,150 rental units along with 45,000 square feet of retail.
Click here for the full article.
News Alert: October 14
NYC Modernizes Project Plan Review Process
The Bloomberg Administration announced a new construction plan review process that allows for digital submission of plans and web-based consultation between city agencies and developers. The Department of Buildings' (DOB) new "Development Hub" provides licensed architects and engineers the ability to submit digital construction plans. DOB will employ large television screens, smart boards, webcams and desktop computer tablets to accelerate the review of building designs without the use of paper.
Click here for the full press release.
News Alert: October 13
NYCHA Sale of Properties Worries Local Residents
The New York City Housing Authority announced that it will be putting up for bid in less than two months two long-vacant buildings on Waverly Avenue in Brooklyn. The Pratt Area Community Council has aimed to purchase the two buildings for affordable housing purposes but the short turnaround will make it difficult for the PACC to organize the necessary subsidies to be in the position to submit its own bid.
Sheila Stainback, spokeswoman for NYCHA, is quoted as saying that "the buildings will be sold ‘as is’ to highest bidder at current market value” but she leaves open the possibility that the public auction could be cancelled if PACC presented a proposal to NYCHA to make a purchase and develop affordable housing.
Click here for the full New York Times article.
News Alert: October 12
The Arker Companies Fronts Partnership that Opens 83 Units in the Bronx
Hewitt House, an 83-unit building constructed in the Longwood section of the Bronx by The Arker Companies, was opened adding to the more than 3,700 affordable units already created or preserved in Community Board 2 as part of Mayor Bloomberg's New Housing Marketplace Plan.
"Total development cost for Hewitt is approximately $21.7 million and has provided 77 construction-related job opportunities in each year of the two-year construction period. HDC provided $11 million in tax-exempt bonds for the development’s construction, as well as $3.9 million for permanent financing and $4.5 million subsidy. Four percent tax credits were allocated by the NYC Department of Housing Preservation and Development (HPD)... Bank of America provided a Letter of Credit with Wells Fargo acting as the Tax Credit Investor. $4.5 million had been provided from the 421a fund which requires developers to commit to a longer term of affordability, as well as $7.6 million in Tax Credit Equity."
Hewitt House offers 11 studios, 28 one-bedrooms, 43 two-bedrooms, and one two-bedroom superintendent unit. All of the units are affordable to households earning no more than 60% of the Area Median Income. "Seventeen of the units are set aside for formerly homeless families. There is a 550-square-foot community space and 20 residential parking spaces. The development also features approximately 14,750-square-feet of ground floor commercial space."
Click here for the full press release.
News Alert: October 12
Seaway Lofts Project in Oswego Receives $1.5M Subsidy
The Seaway Lofts project, a partnership between Sutton Real Estate, Edgemere Development and the principals of Rich and Gardner Construction Co., aims to reuse the former Seaway Supply Building as affordable workforce housing. The $1.5 million subsidy from the state Housing Trust Fund/HOME and Federal Low Income Housing Tax programs will help to create 26 affordable units in the now-vacant building. Additional funding is being supplied by the Federal Home Loan Bank and various local government bodies.
Click here for the full article.
News Alert: October 10
Stalled NYC Projects Slowly Come Back Online
In November 2010, the number of stalled projects in New York City peaked but has come down about 10% since then, according to Engineering New Record/New York. The Department of Building's has been tracking these projects since 2009 and conducted over 12,000 inspections to ensure proper site management.
Despite the large number of stalled projects, very few have applied for construction permit extensions "meeting certain safety, maintenance and security conditions by up to four years". Maintenance of inactive sites can determine the costs or restarting development.
Click here for the full ENR New York article.
News Alert: October 9
Multifamily Industry Cautiously Eyes Deficit Reduction Supercommittee
HousingFinance.com details the potential impact on the multifamily industry of the Congressional supercommittee charged with reducing the federal deficit. Since "everything is on the table right now", the article outlines the discussion surrounding the LIHTC, partnership taxation, carried interest and business interest deduction.
Click here for the full article.
News Alert: October 7
Proposed Bill Extends LIHTC Eligibility to Formerly Homeless Youth
Novogradac & Company reports that legislation has been introduced that would allow formerly homeless youth to pursue higher education while retaining eligibility for low-income housing tax credit housing. The rules currently only allow single-parents, parents receiving public assistance or former foster youth to pursue a four-year education.
Click here to directly access the bill document.
News Alert: October 6
HPD Official Arrested by FBI for Alleged Kickbacks
Various news agencies are reporting that Wendell Walters, Assistant Commissioner within NYC's Housing and Preservation Department has been arrested for suspected kickbacks from several developers allegedly totalling as much as $2 million dating back to January 2000. The arrests stemmed from an FBI corruption investigation focusing on City Councilman Erik Dilan who received an affordable housing unit from developer Sergio Benitez despite exceeding income restrictions by over $40,000. Benitez was among the six developers arrested along with Walters.
A cycle of kickbacks including Walters, developers and contractors is believed to have inflated the cost of affordable housing projects, according to the FBI indictment. The indictment contends that Walters "knowingly furthered this scheme through his involvement in structuring and administering contracts".
Click here for the full article.
News Alert: October 4
Two More Firms Vying for Willet Points Project
Crain's New York reports that the City has received two additional bids to develop Phase 1 of the Willet Points area of Queens. Related Companies entered a bid in conjunction with Sterling Equities, the development firm headed by Mets owners Fred Wilpon and Saul Katz, while TDC Development entered its own bid.
Phase 1 encompasses 12.75 acres as part of a three phase project that covers up to 61.4 acres.
Click here for the full article.
News Alert: October 3
Met Council Opens 70 Units of Senior Housing in the Bronx
The Met Council opened its fifth "Tower" development - a 70-unit senior housing development in the Bronx. The Harry and Jeanette Weinberg Council Towers V (Council Towers V) project was built on formerly city-owned land in partnership with HPD and includes 21 units for formerly homeless seniors. It was built in part with $13,283,400 in funding from HUD's Section 202 program which limits tenant's rental contributions to 30 percent of household income.
The total cost of the project was $17,557,000. Additional funding sources included $1,105,000 in HOME funds from HPD and another $800,000 in Reso A funds through HPD’s Senior Housing Program. The U.S. Department of Housing and Urban Development (HUD) also contributed $286,000 in pre-development costs. Federal Home Loan Bank provided $400,000 for the construction of this development. New York State Energy Research and Development Authority (NYSERDA) contributed $150,000 to the development.
Click here for the full press release.
News Alert: October 2
Bronx Affordable Housing Projects Upsetting Car Owners
This article in Crain's New York reports on the burdens being felt by car owners on Webster Avenue in the Bronx due to development stirred by a recent rezoning. It focuses on the moderate-income 430-unit Webster Commons development being built by Jackson Development, which concedes the temporary inconvenience but counters that the project will ultimately also provide multiple new lots daily and long-term parking.
Residents are also concerned about pending state tax credit applications for a 60-unit low-income project to be built three blocks away. However Fernando Tirado, district manager of Community Board 7, "is encouraging residents to take a longer view."
Click here for the full article.
News Alert: September 30
HUD Sets 2012 Fair Market Rents
Novoco.com reports that the Department of Housing and Urban Development has established its fair market rent guidelines for the fiscal year 2012. Fair market rent guidelines are used "to determine payment standard amounts for the Housing Choice Voucher program, to determine initial renewal rents for some expiring project-based Section 8 contracts and to determine initial rents for housing assistance payments (HAP) contracts in the Moderate Rehabilitation Single Room Occupancy (SRO) program."
News Alert: September 29
Citi Foundation Commits $2.75M to Neighborhood Stabilization
From Businesswire.com:
"The Citi Foundation today announced a $2.75 million commitment to the Housing Partnership Network (HPN) to support the Innovations in Neighborhood Stabilization and Foreclosure Prevention Initiative, an effort to develop new and innovative solutions to neighborhood stabilization challenges in 10 metropolitan areas across the country. The initiative will provide leading community based housing organizations with grants and other resources to support high-impact neighborhood revitalization projects that can yield important lessons and be replicated in communities across the country.
The grant awards will fund 10 different neighborhood stabilization initiatives over a two-year period, and will be managed by 12 HPN member organizations. Two of the grants have a national focus, while the others target specific communities that have been heavily impacted by mortgage delinquency and foreclosure. Additional funds from the Citi Foundation will support HPN's efforts to provide technical assistance and facilitate peer information sharing."
One of the awards went to Neighborhood Housing Services of New York City, which is partnering with the Long Island Housing Partnership and the New York Mortgage Coalition.
Click here for the full press release.
News Alert: September 29
The Richman Group Opens The Balton and Douglaston Park in Harlem
The Richman Group Development Corporation announced the opening of two Harlem properties that will provide 226 mixed-income units in Central Harlem. The project also includes 15,000 square feet of ground floor retail space and 115 underground parking spaces. The buildings were designed by SLCE Architects and Monadnock Construction was the general contractor.
The development costs for the entire development totaled $100,966,259. The development received a total of $20,800,000 in Tax Credit Assistance Program (TCAP) funding allocated to HPD by the US Department of Housing & Urban Development (HUD) and the NYS Division of Housing and Community Renewal (DHCR), and $14,882,748 in HOME funds also provided by HPD. An additional $21,670,778 in Low Income Housing Tax Credit (LIHTC) equity and developer equity are being provided by The Richman Group.
Click here for the full press release.
News Alert: September 28
HPD Issues RFP for Phase I of Livonia Avenue Initiative
The New York City Department of Housing Preservation and Development has issued an RFP to develop four East New York lots as a part of its Livonia Avenue Initiative. The selected developer will receive the four lots each for the nominal price of $1.
Along with up to 68,000 square feet of ground floor commercial space, HPD seeks a project that will create as much as 225 units of affordable housing. Phase I of this redevelopment initiative "has been designated as a low-income rental project, incomes would generally be up to 60 percent of the Area Median Income (AMI), or what is equal to a household income of up to $49,080 for a family of four. Projects may include a tier of units affordable to households earning between 60 and 90 percent AMI (between $49,080 and $73,620 for a family of four)."
HPD's ultimate goal for the entire three-phase Livonia Avenue Initiative is the development of 791 affordable housing units.
The deadline for submissions is December 19, 2011. Proposals can utilize all or a portion of the four available lots.
Click here for the full press release which includes a link to HPD's RFP guidelines document.
News Alert: September 28
CWCapital Expands into LIHTC Syndication
Affordable Housing Finance reports that CWCapital is opening a New York office headed by Justin Ginsberg and Andrew Weil and entering the LIHTC syndication business. Both Mr. Ginsberg and Mr. Weil are moving over from Centerline Capital Group.
CWCapital is a member of Freddie Mac's Targeted Affordable Housing network and last year "was the fifth-most active Fannie Mae lender ($1.1 billion), the fifth-most active FHA lender ($925 million), and the eighth-biggest Freddie Mac lender ($691 million), according to the Mortgage Bankers Association. And the firm will surpass those figures this year, having closed $1.8 billion in agency loans through the first seven months of 2011."
Click here for the full article.
News Alert: September 27
New York Times Heralds Via Verde and Dorothy Day Affordable Housing Developments
Michael Kimmelman on Monday profiled the Via Verde development in the South Bronx as not only "handsome" architecture but a structure that "goes out of its way to be healthy". The project paired Jonathan Rose and Phipps Houses with Dattner Architects and London-based Grimshaw Architects. The resulting develop