Settlement Housing Fund acquires an unregulated 58-unit building in Mount Eden, Bronx
The Neighborhood Pillars Program is designed to help non-profit and mission-driven organizations acquire and preserve buildings as stable affordable housing assets for the community
NEW YORK, NY – The New York City Department of Housing Preservation and Development (HPD) Commissioner Louise Carroll, Settlement Housing Fund (SHF), the Community Preservation Corporation (CPC), and the New York City Acquisition Fund announces the first acquisition of a property through the City’s Neighborhood Pillars Downpayment Assistance Fund. 1415-1417 Wythe Place, in the Mount Eden neighborhood of the Bronx, has been acquired by Settlement Housing Fund with the intent to pursue financing for the rehabilitation of the property, building upgrades, and the preservation of affordable rent for all 58 apartments. This is one project in the first wave of projects recently acquired by for-profit and non-profit organizations slated for preservation through the Neighborhood Pillars Program.
To date, HPD has facilitated the acquisition of five projects intended for the Neighborhood Pillars Program. These projects contain a combined total of approximately 10 buildings with a combined total of 339 apartments. The average rehabilitation investment needs is approximately $44,000 per unit. Through this program, residents will benefit from building and apartment renovations, rent-stabilized leases, and other affordability protections. Fifty percent of the 339 units will be permanently affordable.
The first non-profit acquisition to use the Neighborhood Pillars Downpayment Assistance Fund, 1415-1417 Wythe Place, is a five-story walk-up building that was constructed in the early 1920s. Planned renovation work will likely include upgrades to the building’s electrical systems, installation of a new roof, and repairs to the façade and floors. Settlement Housing Fund is partnering with an engineering and building services consultant to generate an Integrated Physical Needs Assessment, which will inform the scope of the building rehab. The rehabilitation loan is expected to close at the end of 2019.
“In the midst of an affordability crisis, preservation is one of the most effective tools we have to assure families that they can continue to afford living in their homes and communities. The Neighborhood Pillars Program relies on dedicated non-profit and mission-based organizations with deep community ties to protect affordability and fortify the city’s existing housing stock,” said HPD Commissioner Louise Carroll. “I want to thank our partners in development for their efforts as we continue to work together to preserve equitable housing opportunities for New York City families.”
“Settlement Housing Fund is proud to partner with HPD and the Community Preservation Corporation to ensure that 1415-1417 Wythe will remain affordable and in good condition for the long-term. Neighborhood Pillars is an innovative program that strengthens neighborhoods by investing in the places people live. New Yorkers shouldn’t have to choose between affordable rent and quality housing,” said Alexa Sewell, President of Settlement Housing Fund.
“I’m proud to partner with SHF to help preserve affordability for the tenants at Wythe Place, and to ensure that the building gets the attention and repairs it needs. Rent stabilized and naturally affordable unregulated buildings, like Wythe are the backbone of our city’s housing stock, and we need to do all we can to help preserve them. I thank HPD Commissioner Louise Carroll and SHF President Alexa Sewell for their commitment to supporting our communities and advocating for our tenants,” said Rafael E. Cestero, President & CEO of CPC.
The Neighborhood Pillars program was launched in December 2018. The Program helps nonprofits and mission driven organizations acquire and preserve buildings, including ensuring affordability of unregulated units and investment in housing quality. The program includes a Downpayment Assistance Fund and construction and permanent financing through HPD and HDC. The Neighborhood Pillars Down Payment Assistance Fund was created with the assistance of CPC and a $2 million commitment from the Wells Fargo Foundation. The Fund allows for technical and financial assistance to be used by qualified non-profit organizations as a down payment or deposit on a contract to acquire properties and cover limited pre-acquisition costs. Organizations using the Neighborhood Pillars Downpayment Assistance Fund are eligible for acquisition financing through the New York City Acquisition Loan Fund.
CPC originated a New York City Acquisition Fund loan in the amount $10.3 million to assist SHF with the project’s acquisition and pre-development costs. CPC will also work with SHF to provide permanent financing and funds for renovation through a Fannie Mae Multifamily Affordable Housing loan in tandem with financing from HPD.
Pre-qualified nonprofits, mission-based organizations, and certified Minority- and Women-Owned Business Enterprises (M/WBEs) were identified for the program through a Request for Qualifications (RFQ) issued last spring. Potential buyers can continue to apply on a rolling basis.
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The New York City Department of Housing Preservation and Development (HPD) is the nation’s largest municipal housing preservation and development agency. Its mission is to promote quality housing and diverse, thriving neighborhoods for New Yorkers through loan and development programs for new affordable housing, preservation of the affordability of the existing housing stock, enforcement of housing quality standards, and educational programs for tenants and building owners. HPD is tasked with fulfilling Mayor de Blasio’s Housing New York Plan which was recently expanded and accelerated through Housing New York 2.0 to complete the initial goal of 200,000 homes two years ahead of schedule—by 2022, and achieve an additional 100,000 homes over the following four years, for a total of 300,000 homes by 2026. For full details visit www.nyc.gov/hpd and for regular updates on HPD news and services, connect with us on Facebook, Twitter, and Instagram @NYCHousing.
Settlement Housing Fund creates and sustains high quality affordable housing and programs, building strong and economically diverse neighborhoods throughout New York City. The pioneering nonprofit housing developer has worked since 1969 to create more than 8,700 apartments through 64 affordable rental and homeownership development projects, incorporating programs and services that respond to the needs of the surrounding communities. Launched as a development consultant to other nonprofits, the organization has worked since 1989 as a developer/owner of its own properties, with concentrations of housing and programs in the Mt. Eden section of the Bronx, Crown Heights, Brooklyn, and the Two Bridges neighborhood on the Lower East Side. Settlement Housing Fund focuses on identifying new housing development opportunities in and nearby its core neighborhoods, and works closely with community partners to provide low- and moderate-income New Yorkers with pathways to long-term affordable housing, education, employment and wellness. For details visit https://www.settlementhousingfund.org.
The Community Preservation Corporation (CPC) Established in 1974, CPC is a nonprofit affordable housing and community revitalization finance company that believes housing is central to transforming underserved neighborhoods into thriving and vibrant communities. The company provides a full suite of capital products through its construction lending, permanent lending, and equity investing platforms. Since inception, CPC has provided roughly $11 billion to finance more than 193,000 units of multifamily housing. CPC’s work with its partners has helped revitalize countless neighborhoods and provided quality housing for families, senior citizens, and individuals with disabilities. Visit CPC at communityp.com, and on Facebook, Twitter and LinkedIn.