The affordability of 243 rental apartments in the East Village has been locked in for 40 years under an agreement announced yesterday.
LIHC Investment Group recently struck a deal with the city to preserve the Section 8 properties known as “Lower East Side I and II Apartments” at 384 East 10th St. and 199 Avenue B. It was part of a larger agreement covering 669 units across the city. Under the terms of the deal, the buildings will receive tax abatements and new 40-year regulatory agreements. The property owners will also spend millions to renovate the buildings.
The 10th Street building includes 152 Project-Based Section 8 units. The property on Avenue B has 91 Project-Based Section 8 units. According to a press release, all of the apartments will be maintained as affordable to tenants whose annual income does not exceed 50 percent of Area Median Income (AMI is $93,900 for a family of three). Currently, the properties are 100% leased. As units become vacant, they will be made available to low-income families. The agreement requires the owners to set aside 20% of the units for homeless individuals and families.
The building owners, LIHC and Center Development Corporation, will be making $7 million in improvements, including kitchen and bathroom upgrades, new wood flooring and new lighting.
The city’s Department of Housing Preservation and Development (HPD) and the New York City Housing Development Corporation worked with the owners to preserve the affordable apartments under the mayor’s Housing New York Plan. In a statement, HPD Commissioner Maria Torres-Springer called the deal, “a victory for both residents and neighborhoods that benefit from the stability that comes from extended affordability.”
Andrew Gendron of LIHC said, “This deal will preserve existing affordable housing in neighborhoods where it is under the greatest threat, and we are proud to provide residents with an improved living environment, stable housing, and peace of mind far into the future.”
Local City Council member Carlina Rivera added, “The development and preservation of affordable housing is my top priority as a Council Member, which is why I am so proud to have helped LIHC Investment Group and HPD reach an agreement that will preserve nearly 250 units of affordable housing at 384 E. 10th St. and 199 Avenue B. For the next 40 years, these residents will continue to be able to live and contribute to our rich and diverse neighborhood, and I want to thank all of the stakeholders, as well as my predecessor Councilwoman Rosie Mendez, for their work on this negotiation.”
As the Real Deal noted, the apartments are being preserved under the state’s Article XI, which requires deeper affordability than the better known 421-a subsidy program. Maine-based LIHC is one of the largest affordable housing firms in the nation, with an ownership interest in more than 37,000 units.