A public-private partnership has joined forced to transform a Mitchell-Lama development on Staten Island into a $75 million affordable showpiece.
The deal to rehab the Arlington Terrace apartments is part of Mayor Bill de Blasio’s Housing New York plan.
New York City Department of Housing Preservation and Development (HPD) Commissioner Vicki Been and New York City Housing Development Corporation (HDC) President Gary Rodney joined Preservation Development Partners — a joint venture of developers Francine Kellman, Brian Raddock, Joseph Ferrara, Brandon Baron and Donald Capoccia — to announce the acquisition and planned rehabilitation of the apartments, to be re-named North Shore Plaza.
North Shore Plaza was able to take advantage of the Rental Assistance Demonstration (RAD) program through the federal Department of Housing and Urban Development and the development will now benefit from a Project Based Voucher (PBV) Section 8 Contract. The New York City Department of Housing Preservation and Development will administer the PBV program at the development.
The subsidy will provide project based housing subsidy to current residents whose income is below 80% of Area Median Income (AMI) and future residents whose income does not exceed 50% AMI.
“The preservation of North Shore Plaza helps to achieve the ambitious preservation goals outlined in Mayor de Blasio’s Housing New York plan by extending the affordability of this development to allow existing tenants to stay in their homes without the risk of soaring rents,” said Vicki Been, HPD Commissioner.
“North Shore Plaza tenants will benefit from the much-needed rehabilitation to the development and to their individual units, made possible in part by the use of RAD to convert the units to project-based Section 8. I commend all our partners for creatively using RAD, an invaluable tool provided by the federal Department of Housing and Urban Development, to allow this Mitchell-Lama to be renovated and locked into affordability for at least thirty more years.”
The multifamily complex consists of four 13-story elevator towers and four walk-up townhouse apartment buildings near Holland Avenue in the Mariners Harbor section.
The project includes 48 studio units, 239 one-bedroom units, 199 two-bedroom units, 26 three-bedroom units, 22 four-bedroom units, one superintendent unit, and one office unit.
Francine Kellman said, “With a limited supply of affordable housing in the Staten Island area and high demand for housing in general, this project will preserve affordable housing in Staten Island and thus provide a long-term benefit to the rapidly developing North Shore community. Preserving and improving New York City’s existing housing stock is a challenging task that relatively few private developers are willing to accept. We are proud to be preservationists.”
The project will get a significant upgrade to the roofing systems. The exterior walls will be repaired and have fresh cement applied; they will also be coated with an elastomeric coat finish. The complex will have the existing steam boilers and oil tanks removed and supplied with direct vent sealed combustion for maximum energy efficiency.
The individual units will be upgraded with new kitchens, including, new cabinets, counter tops, and stainless steel sinks. The bathrooms will have new toilets, sinks, vanities, and shower bodies installed.
All common areas and apartments will receive a fresh coat of paint and have the flooring and doors replaced as needed. The outdoor common areas will have a new children’s play area installed as well as landscaping, fencing, exterior lighting, and state of the art security cameras.
The total development cost for North Shore Plaza, which covers the cost of acquisition and rehabilitation, is approximately $75 million. This development was financed under HDC’s Mitchell Lama Preservation Program.
HDC funding for this development includes approximately $45 million in tax exempt bonds. Freddie Mac will provide mortgage credit enhancement for approximately $38 million in financing. An additional $26 million in Low Income Housing Tax Credit equity will be provided by Wells Fargo.