pr_05-22-2018

DE BLASIO ADMINISTRATION JOINS

THE BOWERY RESIDENTS’ COMMITTEE IN CELEBRATION OF

FIRST HOMESTRETCH PROGRAM DEVELOPMENT

 

Landing Road, a mixed-use transitional and permanent affordable housing residence, will be the first purpose-built facility to open under Mayor’s Turning the Tide on Homelessness Plan

 

NEW YORK – New York City’s Deputy Mayor for Housing and Economic Development Alicia Glen, joined the New York City Department of Social Services (DSS), New York City Department of Housing Preservation and Development (HPD), New York City Housing Development Corporation (HDC), the Bowery Residents’ Committee (BRC) and partners to celebrate the completion of the Apartments at Landing Road and the Reaching New Heights Residence, a co-located permanent supportive affordable housing development and transitional housing facility for homeless individuals. This development is the first project created under Mayor de Blasio’s innovative HomeStretch program. A multi-agency initiative, this project includes a 200-bed transitional shelter for homeless single adults and 136 affordable housing units affordable to extremely low- and very low-income households. This is the City’s first HomeStretch development to provide a hybrid of permanent affordable homes, in The Apartments at Landing Road, and transitional shelter, in the Reaching New Heights Residence, for extremely low- and low-income individuals.

Under the Mayor’s HomeStretch model, shared financing is leveraged to provide cost effective shelter and to subsidize rents for very low-income, formerly homeless individuals and families at the same time.

“Landing Road is a game changer, giving residents a clear path from shelter to support to independence,’ said Deputy Mayor for Housing and Economic Development Alicia Glen. “The unique approach we brought to Landing Road allows our partners at BRC to leverage funding streams for homeless services and double down by providing both shelter beds and supportive housing units in the same building.”

“Connecting homeless and housing systems will build economic mobility, improve health outcomes, and enhance the quality of life for the City’s most vulnerable and low income residents,” said Deputy Mayor for Health and Human Services Dr. Herminia Palacio.  “I would like to congratulate BRC and thank the many partners, including DHS and HPD, who worked to develop this creative financing model, beautifully designed building, and effective program.”

“Many homeless households in New York City need help transitioning from shelters into permanent homes. The HomeStretch program creates a bridge connecting those families and individuals to a more stable future while creating affordable housing opportunities for low-income households,” said Housing Preservation Department Commissioner Maria Torres-Springer. “I would like to thank our partners at DHS for collaborating with us to develop this housing model. I would also like to congratulate BRC and partners for making the dream of Landing Road come to fruition. This innovative mixed-use site exemplifies how we are turning the tide on the citywide challenge of homelessness by transforming a haphazard shelter system that developed over decades into one that places people and community first,” said Department of Social Services Commissioner Steven Banks. “In partnership with not-for-profit social service provider BRC, we’re proud to provide New Yorkers in need with high-quality affordable and transitional housing opportunities alongside workforce development programs that will help employed and employable men experiencing homelessness get back on their feet and permanent apartments for formerly homeless individuals as well as community residents.”

“This innovative project demonstrates the profound impact we can have on reducing homelessness and creating a more equitable New York when working together,” said HDC President Eric Enderlin. “Thanks to our many public and private partners for their tremendous contributions to this transitional shelter and affordable housing development. My heartfelt congratulations go out to the individuals and families who will now have a pathway to greater stability thanks to their new homes at Landing Road.”

“We are grateful for the many partners and supporters here with us today who made this project, and the opportunities it creates, possible,” said Muzzy Rosenblatt, CEO and President of BRC. “We commend Mayor de Blasio and his administration for their vision to make innovative strategies like our HomeStretch project a reality, providing a new and innovative strategy to finance housing for people with limited incomes, and high quality and effective shelters for people in need.  And now we will be able to replicate this strategy again and again, thanks to the extraordinary generosity of JPMorgan Chase & Co., and their institutional commitment to building equitable communities. Their gift, along with that of other philanthropic supporters, will support BRC's The Way Home Fund, to kick start the development of a pipeline of projects like the one we celebrate today.”

The interconnected nature of the development enables BRC to ensure the rents for permanent apartments at this location are affordable for New Yorkers working hard to make ends meet while providing a variety of on-site services that will help facilitate the transition from shelter to self-sufficiency for New Yorkers experiencing homelessness.

“As our City's homeless population continues to grow, we need to work to implement programs and resources that help address the various factors that can cause New Yorkers to become and remain homeless. The Apartments at Landing Road and the Reaching New Heights Residency work to address a major gap in our system by not only providing transitional and permanent affordable housing to extremely low-income New Yorkers in my district, but by also providing all of its residents and the surrounding community with an on-site workforce development program,” said State Senator Gustavo Rivera. “I look forward to continued success and collaborative work with the Bowery Residents' Committee, the New York City Department of Social Services, and New York City Department of Housing Preservation and Development as we address systematic homelessness in my district and throughout New York City.”

“Projects like this one offer an innovative approach toward alleviating the housing crisis for our most vulnerable New Yorkers," said Assembly Member Steven Cymbrowitz (D-Brooklyn), Chair of the Assembly Housing Committee. “The HomeStretch program is a replicable model that forges a path for families and individuals seeking to become productive, engaged members of our communities.”

“New Yorkers face incredible challenges on the path to permanency and it's clear we need ambitious and innovative solutions to forge ahead," said Council Member Stephen Levin, Chair of the General Welfare Committee. “By combining permanent and transitional housing with supportive services, HomeStretch will prove to be an invaluable tool in our mission to provide the housing our City deserves. I applaud this trailblazing approach, and I hope to see continued collaboration between HRA, HPD, and our community partners.”

 “Homelessness is one of the most urgent housing and humanitarian issues facing our city today. As a nonprofit finance company that invests in housing that brings stability and opportunity to peoples’ lives, we believe it is essential to collaborate on projects like Landing Road that provide our most vulnerable citizens with a supportive environment where they can get their lives back on track. I thank BRC, the de Blasio Administration and all of our partners, and I look forward to continuing our work with the city to find innovative pathways to ending homelessness,” said Rafael E. Cestero, President & CEO of CPC.

The City’s Department of Homeless Services began providing services and supports to homeless New Yorkers at this location in January, and permanent affordable tenants, including formerly homeless individuals, began moving in April 2018. The development’s permanent apartments are fully leased; with nearly 100 formerly homeless individuals now back on their feet living independently and more moving into their new permanent apartments in the coming weeks.

Onsite supportive services for shelter residents include a focus on assisting individuals who are currently employed or who are actively seeking employment by providing necessary onsite services and supports such as job readiness training and job search assistance, with access to dedicated employment case managers and job developers. Working residents may take advantage of services that provide skill enhancement and employment retention training — all with the overarching goal of creating a path toward self-sufficiency and permanent housing. A building director is on site to supervise all staff and help build community, and a Facilities Manager is on site to assist tenants with budgeting and money management guidance to help ensure tenants stay housed.

BRC’s on-site workforce development program, funded by Robin Hood, Kenan Charitable Trust, Hearst and other philanthropic partners, is located on the ground floor and is accessible to shelter residents, permanent housing residents, and community members alike.

The permanent housing portion of this development is well within the financial reach of those experiencing homelessness and exiting the shelter system as they get back on their feet, with affordable rent levels that allow individuals earning as little as $10 an hour to pay only one-third of their monthly income towards rent.  The project offers 135 permanent housing units, including 111 studios for working homeless single adults earning an annual income at or below $25,585, seven one-bedroom units for households of two earning no more than $41,750 annually, and 17 two-bedroom units for families of three earning no more than $56,340 annually.  There is an additional two-bedroom unit set aside for the superintendent.

Landing Road Residence was financed with nearly $5.7 million in City Capital provided by HPD, more than $22.3 million in tax-exempt bonds and $16.32 million in corporate reserves provided by HDC. In addition, the project benefits from valuable low-income housing tax credits (LIHTC) that generated more than $17.81 million in tax credit equity. The New York State Energy Research and Development Authority (NYSERDA) provided a $163,000 grant. The Community Preservation Corporation (CPC) provided an $18.3 million permanent loan through a private pension fund for the 200-bed transitional housing portion of the project. Bank of America provided credit enhancement. Capital One serves as the tax credit investor and Red Stone as the tax credit syndicator.