Related to Preserve, Renovate Affordable Apartment Communities
- Aug 12, 2011
New York–Keeping families in affordable apartments not only enhances their quality of life, but does a great deal to stabilize neighborhoods. That’s why the recent acquisition, renovation and preservation of the 48-unit New Horizons affordable housing development on West 111th St. in Harlem was cause for rejoicing.
The rehabilitation of New Horizons was financed through New York City’s New Housing Marketplace Plan (NHMP), an $8.5 billion effort to create 165,000 affordable housing units for 500,000 New York residents by the end of 2014.
While praising New Horizons’ preservation, NYC Housing Development Corporation (HDC) president Marc Jahr and executives from Related Cos. also announced that 210 additional apartments in two other Manhattan properties, North Park and Terrific Tenements, will be preserved as well.
The units will be preserved as affordable for 35 years. “We take great pride in preserving, improving and extending the affordability of housing stock, which will in turn improve the lives of the families that call those developments home,” Mark E. Carbone, president of Related Affordable, tells MHN. “By improving the individual properties, the local communities will also be revitalized through the addition of community services and a revival of surrounding areas.”
This brings the number of units of affordable housing whose creation or preservation have been funded by the NHMP, the city and its partners across New York City’s five boroughs to 124,495. By injecting capital into distressed neighborhoods, the plan is also helping to create jobs that aid the city’s recovery endeavors. More than 120,000 full-time jobs in construction and related industries have been generated thus far by the NHMP.
One notable aspect of the preservations and renovations is that all three sites are situated on valuable parcels of real estate attractive to market-rate apartment developers. For instance, New Horizons is located along Central Park’s northern edge, while North Park occupies a pricey nook on the Upper West Side. The trendy Clinton neighborhood is home to Terrific Tenements.
Instead of being supplanted by higher-priced apartments, they will be preserved by Related and its partners for existing residents and those who follow them. Says Jahr: “We‘re grateful for that decision, which is good for the tenants, good for the neighborhoods and good for the city as a whole.”
Affordable housing is crucial to New York City’s continued growth, adds Related Cos. executive vice president Bruce A. Beal, Jr. “Related is proud to have not only continued to acquire and preserve affordable housing, but to have never taken a single unit of affordable housing to market rent.”
Finally, putting together all necessary financial pieces on these types of deals is exceptionally challenging, Carbone says. “But we had great partners in Wells Fargo and the City of New York, who shared our goal of preserving these assets,” he adds.