Will NYC’s Modular Construction for Affordable Housing Set a Trend?

NEW YORK CITY—Modular homes are sometimes referred to as “manufactured” instead of “constructed.” Now, New York City is funding a modular affordable housing project at 581 Grant Ave. in East New York, Brooklyn. The development will be one of the first in the state to use the method of stacking factory-produced apartment units to lower construction costs and increase efficiency. The city estimates this will reduce construction time 25% to 30%.

The city awarded a $70 million contract to Thorobird Companies in partnership with Bangladeshi American Community Development & Youth Services to develop the new, 167-unit affordable housing complex. The city funds are partially coming from the Department of Housing and Preservation’s Extremely Low and Low-income Affordability (ELLA) program.

This was the first request for proposal the city issued and awarded for modular construction. Now 581 Grant Ave. could mark a change moving forward in how homes are built, especially where there are shortages.

Thorobird is one of the city’s leading developers that specializes in affordable housing.

“We recognize that the city is entrusting us with one of the first affordable housing developments to be built this way is a great responsibility,” says Thomas Campbell, managing director at Thorobird. “The ability to build off-site in a factory-controlled environment generates less waste, creates fewer community disturbances and allows for tighter construction. This is a smart way to build.”

The development will include units starting with studios and increasing in size up to four bedrooms. Construction is expected to begin in 2021 and end in mid-2022.

As part of its routine practice, Thorobird emphasizes community inclusion and having a positive local impact. The project will include workforce training, medical services and after school care for students in the neighborhood. The developer will also construct a ground-level plaza for a farmer’s market and a green rooftop deck.

“This is a community that has transformed itself so it was important that we bring public spaces back to the community,” says Campbell. “And even more critical that they be a part of the project.”

Thorobird has established a track record in affordable housing. The firm is currently developing The Atlantic at 1921 Atlantic Ave., a $117 million, supportive and middle income project with 236 units. It’s in Bedford-Stuyvesant, Brooklyn. The developer is also building a $66 million complex, The Grand, which comprises three multifamily rental buildings at 220 E. 178th St., 225 E. 179th St. and 2189-2195 Morris Ave. in the South Bronx. This complex is the largest ground-up, low-cost, tax-exempt bond deal developed by a minority-owned firm throughout Gov. Andrew Cuomo’s three-term administration.