GROUNDBREAKING ON 103-UNIT AFFORDABLE HOUSING COMMUNITY

NEW YORK CITY — Ground was recently broken for a new 103-unit affordable housing project in the Brownsville section of Brooklyn in New York City. Situated on land that fronts Watkins Street between Newport and Lott Avenue, the new community will consist of 13 four-story apartment buildings comprised of 35 one-bedroom, 57 two-bedroom, and 11 three-bedroom units with an additional unit set aside for the superintendent. There will also be on-site laundry facilities, outdoor recreation space and 22 on-site parking spaces. The development arm of The Community Preservation Corporation, CPC Resources, will oversee all aspects of the development and construction of the project until the apartments are fully leased at which point East Brooklyn Congregation will assume control. The New York City Housing Development Corporation (HDC) will finance the construction of the Watkins Street buildings by issuing $14.5 million in tax-exempt bonds and lending $5.9 million in low-interest subsidy from its corporate reserves. The total development cost is projected to be $28.5 million. In addition to HDC financing, Housing Preservation and Development will provide $6.3 million in City Capital and HOME funds subsidy through the Low Income Rental Program. During construction, the bonds will be backed by a letter of credit from Chase Community Development Banking and$10 million tax credit equity will be syndicated through the RBC Tax Credit Equity Group. A lottery will be held to select tenants for the apartments. Lottery applications are projected to be released in the spring of 2010.