Madison Putnam Will Provide 48 Low-Income Bedford-Stuyvesant Families with New Affordable Homes
Brooklyn, NY, July 12, 2012 – The New York City Department of Housing Preservation and Development (HPD), CPC Resources, Inc. (CPCR), East Brooklyn Congregations (EBC), residents and partners, celebrated today the completion of Madison Putnam, a new 48-unit affordable housing development for low-income families in the Bedford-Stuyvesant section of Brooklyn.
Madison Putnam was created under Mayor Michael R. Bloomberg’s New Housing Marketplace Plan. The plan is a multi-billion dollar initiative to finance 165,000 units of affordable housing for half a million New Yorkers by the close of Fiscal Year 2014. For every dollar invested by the City, the plan has leveraged $3.41 in private funding, amounting to a total commitment to date of more than $19.4 billion to fund the creation or preservation of over 131,360 units of affordable housing across the five boroughs. More than 31,414 units have been financed in Brooklyn.
“Today we celebrate building a community. These seven new buildings stand on what were formerly empty lots. Because of the dedication of CPCR and EBC, along with the support of our partners, 48 families and individuals have an opportunity to live in an affordable home in a newly vitalized community,” said HPD Commissioner Mathew M. Wambua. “We remain committed to strengthening the neighborhoods of New York City and are grateful for partnerships that make developments like these possible.”
Madison Putnam was built on seven previously vacant, City-owned lots. Consisting of 13 one-bedroom, 27 two-bedroom, and 7 three-bedroom rental apartments among seven buildings, Madison Putnam is affordable to families below 60% of the Area Median Income (AMI), or $49,800 for a family of four. In addition, 10 units will be affordable to families below 40% AMI, or $32,040 for a family of four.
“We are proud to add the completion of Madison Putnam to our 38-year history of providing communities throughout New York State with safe and affordable housing and stable neighborhoods,” said Rafael E. Cestero, President and CEO of The Community Preservation Corporation. “As we embark on the new phase of CPC, not only will we continue to pursue novel ways to develop and finance affordable housing, but also continue to be steadfast in our commitment to quality, affordable homes for New Yorkers. We are thankful to our partners for their vision and proud to have supported them in this project.”
The project was designed by RKT&B Architects using CPCR’s infill housing prototype—an efficient, cost-effective prototype that is designed specifically to fit R-6 zoning, which is prevalent in residential neighborhoods throughout Brooklyn, Queens, and the Bronx. The buildings are four-story walk-ups with floor-through apartments. Each building has access to a rear garden reserved for residents’ use.
Financing for Madison Putnam includes a $1.74 million conventional first mortgage and $8.24 million bridge loan construction mortgage from PNC Bank, N.A. Additionally, the project benefitted from a $1.7 million permanent loan from the New York City Pension Fund, which will go to the New York City Employees’ Retirement System, the Teachers’ Retirement System of the City of New York and the New York City Police Pension Fund upon delivery, and is insured by SONYMA. In addition, HPD provided $1.8 million in subsidy and has allocated 9% Low Income Housing Tax Credits for the project, valued at $11.6 million; PNC Bank, N.A. served as the tax credit investor.
“Nearly 30 years ago,” said the Reverend David K. Brawley, Chairman of EBC and Senior Pastor of St. Paul Community Baptist Church, “EBC and Metro Industrial Areas Foundation walked these streets—which were then filled with vacant lots and abandoned and burning buildings—and responded to a challenge as old as the Scriptures. The Old Testament figure Nehemiah, when faced with the burned-out walls of Jerusalem, did not cringe or flee. He summoned his followers by saying, 'Come, let us rebuild these walls and be rid of the reproach.' In 1983, we broke ground for the first of what would 4,425 affordable Nehemiah homes – 1,100 in Brownsville, another 1,100 in East New York, nearly 700 more West of Pennsylvania, and a final phase of 1,525 units in Spring Creek, where we have already completed more than 245 units. Today we continue the rebuilding of our neighborhoods through the opening of Madison Putnam Development.”
“The neighborhood of Bedford-Stuyvesant has seen a tremendous revitalization in recent years and we are grateful to have worked on the latest addition to this trend with the completion of Madison Putnam,” said Richard Esposito, Director of Construction, The Marcal Group.
CPC Resources, Inc. (CPCR) is the for-profit development subsidiary of The Community Preservation Corporation (CPC), a not-for-profit mortgage lender that has financed more than $7 billion of affordable housing since its founding in 1974. CPCR has developed or rehabilitated more than 14,400 units throughout New York State, including Parkchester Apartments in the Bronx, representing an investment of $678 million in affordable housing.www.communityp.com/cpc-resources.
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 2014. Since the plan’s inception, more than 131,360 affordable homes have been created or preserved. Visit: www.nyc.gov/hpd.
Contact: Eric Bederman, VP/Communications
212-895-5300, ext. 482 [email protected]