Bronx, NY – The New York City Department of Housing Preservation and Development (HPD) and The New York City Housing Development Corporation (HDC) joined CPC Resources, Inc. (CPCR), L+M Development Partners, Lemle & Wolff, The New York Housing Partnership, the New York City Housing Authority (NYCHA), and partners to celebrate the groundbreaking of Soundview Family Housing, located in the Soundview section of the Bronx. Immediately adjacent to Soundview Park, one of the Bronx’s largest parks, the eight-story building will house 120 low-income families and is the first in a multi-phase development.
“The efforts at Soundview represent what we presented in our strategic roadmap Plan NYCHA to create and implement a long-term development strategy of our land and development assets that could accommodate the new housing that we are celebrating today,” said NYCHA Chairman John B. Rhea. “The end result of this effort will directly benefit NYCHA residents who will receive priority for 25 percent of the low-income housing, as well as recruitment for jobs resulting from the construction of this project.”
“As our City’s population grows and the need for affordable housing continues to increase, one thing that doesn’t increase is the supply of available land for development,” said HPD Commissioner RuthAnne Visnauskas. “Our partnership with NYCHA allows us to work across agencies to make the most of existing resources and find appropriate development sites so that we can continue to expand affordable housing opportunities for hardworking New York families. As long as our City keeps growing, collaborations like these will be essential to meeting the demand for affordable housing as well as to promote the long-term stability and vibrancy of our communities.
“One of the most productive initiatives in our portfolio of affordable housing production programs has been our partnership with NYCHA and the private sector,” said Marc Jahr, President of HDC. “HDC has been a proud partner in this collaboration with HPD and NYCHA since the first rehab and new construction project was announced in 2005. We are pleased to continue in this role as a provider of low-cost capital and loans that enable the creation of much needed affordable housing on NYCHA land. Soundview Family Housing is a landmark development that will give this community something to celebrate for years to come.”
“Affordable housing has been a top priority of mine since becoming Borough President and since the beginning my office has supported the Soundview Family Housing project. The development of Soundview Family Housing means that more Bronx families and seniors will have a better quality of life. Affordable housing is one of the biggest issues faced in our borough, and I am excited that this project will help address this need,” said Bronx Borough President Ruben Diaz Jr.
“This project will provide high-quality housing to hundreds of low-income families in the midst of a very real affordable housing crisis and also serve as an example of how the public and private sectors can come together to build stronger communities across New York City. I am thrilled to be a part of it,” said Council Member Annabel Palma.
Soundview Family Housing will be developed under Mayor Michael R. Bloomberg’s New Housing Marketplace Plan (NHMP), a multi-billion dollar initiative to finance 165,000 units of affordable housing by the close of the 2014 fiscal year. For every dollar invested by the City for affordable housing, the NHMP has leveraged $3.48 in additional funding for a total investment of more than $23.6 billion. To date, the plan has funded the creation or preservation of more than 156,769 units of affordable housing across the five boroughs, with 49,368 units in the Bronx.
The development is a joint venture by CPC Resources, Inc. (CPCR), L+M Development Partners, Lemle & Wolff, and The New York Housing Partnership. Under the partnership, CPC Resources will oversee the financing, L+M Development Partners the construction, and Lemle & Wolfe will manage the property upon completion. The New York Housing Partnership will form a Housing Development Fund Company as a non-profit sponsor for the development.
Designed by Magnusson Architecture and Planning (MAP), Soundview Family Housing will house 120 families in 24 one-bedroom, 78 two-bedroom, and 18 three-bedroom apartments. One of the three-bedroom units will be reserved for an on-site superintendent. All units will be available to families earning up to 60% of the Area Median Income (AMI), or no more than $51,540 annually for a family of four according to 2013 calculations. There will be a preference for NYCHA and community board residents. AMI levels are calculated annually by the U.S. Department of Housing and Urban Development (HUD). The property will include 42 parking spaces for the residents. The development will also include the extension of Lacombe Avenue to create Bronx River Avenue, a mapped road that was never built.
The two buildings will visually transition between the adjacent NYCHA Soundview Houses and the low-rise apartments in the surrounding area. Each building will have a three-story wing along the new Bronx River Avenue and an eight-story section behind it. This massing preserves views of Soundview Park and the Bronx River from the NYCHA towers. Both buildings will include ground-floor community rooms and laundry rooms. The buildings will be connected by an outdoor, landscaped walkway, which will extend the Soundview Houses’ central open space into the new complex.
The project will also provide employment opportunities for local residents through Building Skills NY, a workforce training program that offers low-income and unemployed New Yorkers construction training and job placement on affordable housing projects in their communities.
“With the development of Soundview Family Housing, we are taking an important step in not only providing Bronx families with quality, stable housing, but also employing underutilized NYCHA resources to meet the City’s growing need for affordable housing,” said Rafael E. Cestero, President and CEO of CPC Resources, Inc. and The Community Preservation Corporation. “Sound housing is the first step in stabilizing low-income families and creating a community, and CPC Resources is committed to bringing high-quality housing to those in need. This project would not be possible without the public-private partnership of L+M Development Partners and Lemle & Wolff, as well as NYCHA, HPD, HDC, Bronx Borough President Diaz and Councilwoman Palma. Together we will create a stronger Soundview community.”
“This affordable family housing development and brand new roadway will connect vital elements of the Soundview neighborhood,” said Ron Moelis, Chairman and CEO of L+M and President of Building Skills NY. “Our goal is to not only ensure that residents have access to stable, affordable housing, but also to create employment prospects that are critical to sustained community improvement. In Soundview, we are committed to training and hiring local residents through Building Skills NY to contribute directly to the revitalization of their neighborhood.”
“Soundview Family Housing is an example of New York City’s creative approach in delivering affordable housing in a market with scarce land availability,” said Michael Sturmer, a partner with Lemle & Wolff, Inc. “By leveraging NYCHA’s underlying asset with funding from HDC, HPD, and elected officials, we are developing well-designed, quality housing for the Soundview community. This project represents Lemle & Wolff’s longstanding commitment to the growth and sustainability of the Bronx and we are pleased to join our partners from CPC Resources and L+M Development Partners in celebrating this new development.”
Dan Martin, President and CEO at the Housing Partnership said, “At the Housing Partnership we strive to provide safe, affordable housing for New York City’s workforce. Soundview is a positive example of utilizing the Housing Authority’s excess land for the critical shortage of affordable housing for NYC residents. We are proud to work with elected officials, New York City Department of Housing Preservation and Development and New York City Housing Development Corporation, CPC Resources, Inc., L+M Development Partners, Lemle & Wolff and the New York City Housing Authority.”
Additional phases of development are currently under negotiations. The proposed second phase of the project, Soundview Senior Housing, would include 86 new units of affordable senior housing. The two eight-story buildings transition between the adjacent NYCHA towers and the low-rise apartments in the surrounding area. The proposed third and final phase of development would create 16 two-family market-rate townhomes. The creation of these phases is subject to market conditions.
The entire Soundview development will be built on formerly NYCHA-owned land. The use of NYCHA-owned land for the development of private affordable housing takes place under the NYCHA/HPD/HDC collaboration. This collaboration highlights the Bloomberg Administration’s commitment to make the most of City resources for the benefit of hardworking New Yorkers. The partnership between the agencies is in keeping with a collaboration that was announced in April 2005 in an innovative effort to identify suitable NYCHA properties and develop them as affordable homes for low-income New Yorkers. The NYCHA/HPD/HDC collaboration has already produced more than 2,500 units with another 1,500 in construction or in the development pipeline, for a total of more than 3,800 affordable units in The Bronx, Brooklyn, Manhattan, and Staten Island.
The total development cost for Soundview Family Housing will be $46.9 million. HDC will provide $23.7 million in tax-exempt bond proceeds toward construction costs and $6.09 million in tax-exempt bond proceeds toward permanent financing. HDC will also provide $7.8 million in subsidy from their corporate reserves. HPD will provide 4% Low-Income Housing Tax Credits that will yield $20.4 million in tax credit equity. Wells Fargo will act as tax credit syndicator. HPD will also provide $1.4 million in City Capital and $7.2 million in 421a funding. Bronx Borough President Ruben Diaz, Jr. will provide $1.4 million in Reso A funding. Reso A funding will also be provided by City Council Member Palma in the amount of $1.25 million.
“This is an exciting project that will put us a step closer to addressing the tremendous need for housing in our community. Particularly, the creation of the 86 units of quality senior housing,” said Assemblyman Marcos A. Crespo, 85th District.
“We are excited to see this community come to life and congratulate the entire team on their hard work,” said Korbin Heiss, a senior vice president in Community Lending & Investment at Wells Fargo. “Wells Fargo is committed to serving our communities and is proud to have strong partnerships that directly impact affordable housing in the Bronx.”
“MAP has been designing housing and other community improvements in the Bronx and the greater New York City area for almost 30 years,” said Christine Hunter, MAP principal, AIA, LEED AP. “We are pleased to help the development team respond to the demand for affordable housing in the Soundview neighborhood. MAP is also committed to designing quality housing for senior citizens in New York City, which is critical to the city’s health as its population ages.”
About the NYC Housing Development Corporation (HDC):
Since 2000, HDC has issued roughly 10% of all the multi-family housing revenue bonds in the U.S. and since 2003, when Mayor Bloomberg’s New Housing Marketplace Plan was launched, HDC has raised more than $6.7 billion in financing for affordable housing developments, including providing in excess of $1 billion in subsidy from corporate reserves. In Affordable Housing Finance magazine’s annual listing of the nation’s top ten funders of multifamily housing, HDC is the only municipal entity on the list. In 2013, HDC was the third largest affordable housing lender in the U.S. after Citi and Wells Fargo, beating out Bank of America, JPMorgan Chase and Capital One. To date, under the Mayor’s plan, HDC has financed the creation or preservation of more than 73,765 of the total 156,397 affordable units. Multifamily buildings financed by HDC contain more than 1.7 million square feet of commercial space. For additional information, visit: www.nychdc.com
About the NYC Department of Housing Preservation and Development (HPD):
HPD is the nation’s largest municipal housing preservation and development agency. Its mission is to promote quality housing and viable neighborhoods for New Yorkers through education, outreach, loan and development programs, and enforcement of housing quality standards. It is responsible for implementing Mayor Bloomberg’s New Housing Marketplace Plan to finance the construction or preservation of 165,000 units of affordable housing by the end of fiscal year 2014. Since the plan’s inception, more than 156,769 affordable homes have been created or preserved. For regular updates on news and services, connect with us via www.facebook.com/nychpd and www.twitter.com/nychousing. For more information, visit our website at www.nyc.gov/hpd.
