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HDC Approves $127 Million to Finance Construction and Rehabilitation of 938 Affordable Apartments

Former Mets 1st Baseman Mo Vaughn
to Rehabilitate 2 Buildings in Brooklyn;
Manhattan Senior Housing to Be Rehabilitated

New York, NY, December 14, 2005

The The New York City Housing Development Corporation (HDC), the nation's number one issuer of bonds for multi-family affordable housing, today authorized $127 million in financing for construction or rehabilitation of 938 affordable apartments in the Bronx, Brooklyn and Manhattan. The approvals cap the Corporation's most productive year ever. In 2005, HDC expects to issue $1.5 billion in bonds to create or preserve more than 10,000 affordable apartments in New York City. In the last month and a half alone, HDC has approved $365 million in financing to create or preserve nearly 4,000 affordable apartments.

Among today's transactions, HDC authorized $100.8 million to finance the construction of six buildings in the Bronx and a development in Brooklyn that together will contain 558 apartments for low income residents. The development in Brooklyn will be located on Malta Street in East New York, and will have 48 apartments in six four-story rowhouses.

The six new buildings that will rise in the Bronx are:

  • 890 Prospect Avenue in Longwood/Morrisania, a 124-unit building near the site of another HDC-financed building on Westchester Avenue that broke ground in August.
  • 270 East Burnside Avenue, a 13-story building one block east of the Grand Concourse that will have 114 apartments.
  • 890 Parkview II at 406-420 East 161st Street and 411-419 East 160th Street in the Melrose neighborhood, a nine-story building with 88 apartments and 6,000 square feet of commercial space.
  • 1068 Gerard Avenue, an 11-story building in the West Concourse neighborhood with 82 apartments.
  • 1090 Franklin Avenue, an 11-story elevator building between Third Av. and E. 166th St. that will have 60 apartments.
  • Morrisania Terrace, an eight-story building at 499-501 East 165th Street with 42 apartments.

Besides the construction of new buildings, HDC today also approved significant renovations for existing buildings for low income residents. HDC approved the sale of $12 million in tax exempt bonds to buy and rehabilitate two six-story elevator buildings containing 168 apartments in East New York, Brooklyn. All of the apartments in the buildings, located at 272 Pennsylvania Avenue and 2060 Pitkin Avenue, are expected to be occupied by households that have incomes no greater than $37,680 for a family of four. They are being rehabilitated by Omni New York LLC, a New York limited partnership whose principals are Maurice "Mo" Vaughn, the former first baseman for the New York Mets, and Eugene Schneur.

HDC also approved the sale of $14 million worth of tax-exempt bonds to refinance and rehabilitate two buildings in Manhattan that have a total of 213 apartments: The Two Bridges Senior Apartments at 80 Rutgers Slip on the Lower East Side and the Logan Apartments at 450 West 131st Street in Harlem. The new financing packages for the buildings afford their owners a lower monthly payment, freeing up money to pay for social services for the residents. It will also allow the developments to benefit from equity raised through the sale of Federal low income housing tax credits.

The New York City Housing Development Corporation (HDC) is the nation's number one issuer of bonds for multi-family affordable housing. Established in 1971 as a public benefit corporation, HDC facilitates the creation of affordable housing throughout the five boroughs by providing below- market financing. Most of HDC's loans are financed through the issuance of tax-exempt or taxable bonds, as well as through mortgages made directly from its Corporate reserves.

HDC has a seven-member governing body. Shaun Donovan, the Commissioner of the New York City Department of Housing Preservation and Development (HPD), is ex-officio Chairperson. Martha E. Stark, the Commissioner of the New York City Department of Finance (DOF), and Mark Page, the Director of the office of Management and Budget (OMB), also serve as ex-officio members. The Mayor and the Governor both appoint two members to HDC's governing body. Harry E. Gould, Jr. and Peter Madonia are Mayoral appointees, with Mr. Madonia serving as Vice Chairperson. Michael Kelly and Charles O. Moerdler were appointed by the Governor.