267 Rogers Ave., Crown Heights, Brooklyn/ Google Maps

NEW YORK CITY—Heights Advisors, an organization which invests in nonprofits focused on social change and also looks for a financial return, and Samaritan Daytop Village, a national human services organization, have opened transitional housing for homeless people in Crown Heights, Brooklyn. They received $51 million provided by Merchants Capital through the Freddie Mac Affordable Housing Capital Markets Execution loan program.

The funds are supporting the 165-unit homeless shelter at 267 Rogers Ave. The project was first announced in 2014. DNAinfo reported that subsequently, the Crown Street Block Association filed a lawsuit to prevent the facility from opening. In May 2017, after 10 families had moved in, a judge passed a temporary restraining order to prevent any other people from moving into the shelter.

In June 2017, a Brooklyn judge overturned the order and allowed the shelter to open. The judge had ruled the plaintiffs had failed to show that 267 Rogers would cause irreparable harm to the neighborhood. Subsequently, DNAinfo reported one-bedroom apartments were renting for as low at $931 per month.

Now, in addition to providing housing for those in need, 267 Rogers offers support services for all of the building's tenants. This includes employment and job services, daily living workshops, personal financial management, education and child care assistance.

“It has been deeply gratifying to work on the deployment of capital on a project that allows homeless families to live in dignity,” says Mathew Wambua, EVP at Merchants Capital. “Projects like 267 Rogers allow the Merchants Capital team to be creative and innovative in solving problems and seeking new financial strategies and structures to solve those problems while serving an immediate need right here in our community.”

The property was originally built as a 165-unit multifamily development with the 80 (market-rate)/20 (affordable) structure. However, instead of renting 80% of the units to market-rate tenants, with the Department of Homeless Services and Samaritan Daytop Village the entire facility will provide affordable housing. Of all units, 80% are reserved for transitional housing and the remaining 20% are set aside for families earning 60% of the area medium income or below.

In April 2016, Mayor Bill de Blasio restructured administrative offices, placing the Department of Homeless Services and the Human Resources Administration under the commissioner of the Department of Social Services.

In addressing homelessness, the mayor plans to replace the 360 scattered apartment sites and commercial hotel facilities with approximately 90 new multifamily, transitional housing shelters. New York City plans to open approximately 20 such facilities each year over the next five years, launching about 90 new shelters. The 267 Rogers development is one of the first multifamily transitional housing developments created as part of the mayor's plan.

Instant Insights /

Crown Heights Homeless Shelter Receives $51M

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