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Affordable Housing in Girls Club Building – More Details

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A couple of weeks ago the Lower East Side Girls Club broke ground on their new home on Avenue D. Today, the Department of Housing Preservation and Development is out with a news release highlighting the 78 units of affordable housing that are also part of the project.  Details after the jump:

The Dermot Company, Inc., The Lower Eastside Girls Club of New York, Inc. and Grosvenor Investment Management US, Inc. have partnered with the City Department of Housing Preservation and Development (HPD) and the NYC Housing Development Corporation (HDC) and private sector financial institutions to develop a new mixed-use property at 101 Avenue D between 7th and 8th Streets on Manhattan’s Lower East Side that includes a 30,000 square-foot headquarters for The Lower Eastside Girls Club and 78 mixed-income rental residences.

The project is being developed under Mayor Michael R. Bloomberg’s New Housing Marketplace Plan (NHMP), an $8.4 billion initiative to finance 165,000 units of affordable housing for half a million New Yorkers by 2014.  To date, the plan has funded the creation or preservation of nearly 108,600 units of affordable housing across the five boroughs.

The Lower Eastside Girls project has been financed with a combination of tax-exempt housing bonds and new market tax credits. HPD sold the land to the Lower East Side Girls Club at a steeply discounted price to subsidize the affordable housing and HDC has provided tax-exempt bond financing and subsidy loans. Bank of America has provided the supporting Letter of Credit for the residential portion of the project.  In addition, Bank of America, and Carver Community Development Corporation provided an allocation of New Market Tax Credits (NMTC), which Bank of America and JP Morgan Chase will invest in to raise NMTC equity financing for the Girls Club headquarters. Grosvenor Investment Management US, Inc. has provided equity joint venture capital for the project.  The building is being constructed by D7 Construction, LLC.

”We are thrilled to have closed on the construction financing for this unique project. Assembling the financing was complicated and involved a myriad of different City agencies, banks and investors making it the most complex development project we have done to date,” said Drew Spitler, Director of Development, The Dermot Company, Inc. “The financing environment is quite challenging but in conjunction with the Girls Club, we were able to get this absolutely amazing project across the goal line.”

“Our dream is finally becoming a reality,” said Lyn Pentecost, founder and executive director of the Lower Eastside Girls Club (LESGC).  “Thanks to the efforts of many – private individuals, foundations, the City, State, Federal government, banks, architects and developers — our girls and young women will be able to become the next generation of leaders, pursuing their dreams in a state-of-the-art building.  From a planetarium to a bakery, from a recording studio to classrooms for tutoring, the youth of our community will have the tools to go out into the world with knowledge and confidence.”

Located at 101 Avenue D, the 12-story, brick building is expected to be LEED certified and will include 4,700 square-feet of retail space along the avenue. Residents of the 78 rental units will enjoy onsite amenities such as a fully-equipped gym, laundry facilities, a rooftop deck and bike storage. Built under HDC’s Mixed Income Housing “50/30/20” program, 50 percent of the apartments are  affordable to low- and moderate-income families including 12 units that will remain permanently affordable under the provisions of HPD’s Inclusionary Zoning Program, and the remaining 50 percent of the apartments are market rate but subject to rent stabilization.

To fund the residential and retail space, HDC issued $25 million in bonds including $15.25 million of recycled tax-exempt bonds and $9.75 million of tax-exempt bonds subject to the private activity volume cap, all backed by a Letter of Credit from Bank of America. HDC also provided over $2.5 million in corporate subsidy.  When complete, 101 Avenue D is expected to receive a 20-year phased 421a tax abatement. The Lower East Side Girls Club portion of the project was financed by a combination of developer equity and private donations and grants, equity generated from NMTC, and $9.6 million of Reso A funds, comprised of $5.5 million from the Office of the Mayor, $900,000 from Manhattan Borough President Scott Stringer, and $3.2 million from the City Council.

“This exciting new development to be built on a parcel of long-vacant City-owned property represents the best use to meet multiple community needs—affordable housing and a community center for neighborhood girls,” said HPD Commissioner Rafael E. Cestero. “The planned development at 101 Avenue D is what the Mayor’s New Housing Marketplace Plan is all about—revitalizing and strengthening our neighborhoods, promoting economic diversity, providing the infrastructure to stabilize families and building housing that will remain and affordable resource over the long term.”

“The development of this housing and the new Girls Club facility is both important and meaningful to this community and the City as a whole,” said Marc Jahr, HDC President.  “The 101 Avenue D Apartments will offer top quality affordable homes to a mix of area residents while providing the basis for creating a state-of-the-art LEED Gold certified neighborhood facility that will provide the means to enrich the lives of young girls and women, giving them every chance to succeed and lead.”

Robert Kilroy, Managing Director, Grosvenor Investment Management noted, “Grosvenor Investment Management is pleased to continue our long-standing investment relationship with The Dermot Company and to assist in the capitalization of another property in NYC with a multifamily housing component. The creativity and hard work of a number of city agencies facilitated our proceeding with the investment. We are highly confident in the development’s eventual success.”

“We are very pleased to be able to provide financing that creates an impact in this community, including the services of The Lower Eastside Girls Club and much-needed affordable rental housing for the area,” added Steve Kenny, Bank of America Merrill Lynch Real Estate Regional Executive.

Construction is expected to be completed by June 2012. For more information, please visit www.dermotcompany.com.

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1 COMMENT

  1. when are they going to mial out housing applications? for the building under construction 101 ave D 7 st. are people on ssi elgiable?

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