A Tale of Two Affordable Housing Projects in the Bronx

NEW YORK CITY—Two affordable housing developments totaling nearly $160 million in the Bronx have reached significant milestones—one 176-unit project geared to low-income seniors has broken ground, while another 167-unit development officially opened its doors today.

City and state officials announced on Friday that construction had begun on the Arthur Avenue Apartments, a $91-million affordable housing development that will create 176 affordable homes for low-income seniors aged 62 and older. The energy-efficient development at 600 E. 179th St. will also include approximately 4,500 square feet of health-oriented community space, including an interior green house with a teaching kitchen, a working vegetable garden for tenant use and two landscaped outdoor terraces.

The nine-story building being developed jointly by Foxy Management of the Bronx and the Hebrew Home at Riverdale is located in the Belmont neighborhood of the Bronx. The property will include 54 apartments reserved for formerly homeless seniors in need of support services. The energy-efficient development also features approximately 4,500 square feet of health-oriented community space including an interior green house with a teaching kitchen, a working vegetable garden for tenant use and two landscaped outdoor terraces.

Arthur Avenue Apartments will feature 88 studio apartments and 88 one-bedroom apartments for seniors earning between 30% and 60% of the Area Median Income. Fifty-four apartments will be reserved for formerly homeless seniors with chronic health conditions who will receive on-site support services provided by the Hebrew Homes at Riverdale. Services are expected to include activities that promote socialization, life skills training and maintenance, education and fitness-based instruction groups, nutritional education, cooking, mediation and music therapy, state officials note. The project is expected to be completed in January 2021, according to Foxy Management’s website.

Financing for Arthur Avenue Apartments is being provided through the New York State Homes and Community Renewal and includes $19.2 million in tax-exempt bonds, federal Low-Income Housing Tax Credits that will generate approximately $36 million in equity for the project and an additional $13.2 million in subsidies.

The development is also supported by HCR’s Green Bonds program, which issues tax-exempt bonds certified by The Climate Bond Initiative. Funding to provide services and operations for the 54 supportive apartments will be provided through the Empire State Supportive Housing Initiative administered by the New York State Department of Health. The New York City Department of Housing Preservation and Development will provide $13.3 million through its Senior Affordable Rental Assistance Program and the New York City Council has awarded the project $500,000.

“The Arthur Avenue Apartments will provide safe, affordable housing options for seniors and the most vulnerable New Yorkers, ensuring the fundamental security people need,” Gov. Andrew Cuomo said. “These homes, paired with support services that promote health, foster independence and enrich quality of life will help New Yorkers thrive and set entire communities in the Bronx on the path towards success.”

In another Bronx affordable housing project, Bronx Borough President Ruben Diaz Jr. reports that a grand opening is scheduled today for the 167-unit MLK Plaza affordable housing project being developed by Radson Development in the Mott Haven section of the borough.

The 12-story building at 869 E. 147th St. will provide affordable housing to a range of income levels and is one of the first buildings to be completed under the city’s Mandatory Inclusionary Housing program. Construction began on the building in 2017.

“MLK Plaza is a testament to our efforts to create new housing units and keep our borough and our city affordable,” said Bronx Borough President Diaz. “Since 2009, we have invested $1.6 billion towards the creation of over 6,100 affordable units across 68 projects, mostly for low-income families, including $500,000 in capital funding for this worthy project. MLK Plaza will not only provide necessary affordable housing units for the borough but considering that permanent supportive housing is the key to preventing recurring homelessness, these new units will also help alleviate the homelessness problem.”

MLK Plaza provides 167-units of all affordable housing with units available to individuals earning $21,930 up to a family of three earning just over $75,000 per year. A total of 33 of the units are set aside for formerly homeless households. The building was designed by Magnusson Architecture and Planning under LEED Platinum standards, and is comprised of 25 studios, 57 one bedrooms, 60 two-bedrooms, 24 three-bedroom apartments. The building also includes a 722-square-foot community room and a green roof.

The total development cost for MLK Plaza is approximately $63.71 million. HDC funding sources for this development include $27.72 million in tax-exempt bonds and approximately $10.86 million in corporate subsidy. HPD provided nearly $12.53 million in subsidy plus an additional $6.6 million under the OurSpace Initiative to fund the homeless units. Additionally, Bronx Borough President Ruben Diaz, Jr. and former City Council Speaker Melissa Mark-Viverito each committed $500,000 for the project.

Citi is providing a construction period letter of credit. HSBC is serving as tax credit investor. Raymond James Financial is the tax credit syndicator. The Housing Partnership Development Corporation is the Housing Development Finance Corporation partner on the project. Raymond James Tax Credit Funds, together with HSBC Bank USA, invested more than $22 million in the MLK Plaza development.