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Debt & Equity

Related secures bond financing for affordable housing upgrades

The Related Companies has secured $27.5 million in tax-exempt bond financing to renovate Ebony Gardens, a multi-family complex in Mount Vernon.

 The Westchester County Industrial Development Agency (IDA) recently voted preliminary approval of $653,672 in cash incentives and the bond financing for the overhaul of the multi-family complex comprised of seven garden-style apartment buildings with a total of 144 units of affordable housing targeting tenants earning 60 percent of area median income.

Renovations will include upgraded kitchens and baths, new windows, new roofs, upgrading of facades and upgrading of mechanical systems. In addition, there will be a new amenities building with a fitness room, business center and community room. The complex will be wired for wifi that will be provided free of charges to the residents.

Located at 138 South Sixth Avenue, Ebony Gardens (pictured top) was built in the early 1980s and was in continuous operation as housing for low-income families.

The $7.9 million renovation project is expected to create 41 construction jobs and create and retain 40 full-time jobs. The developer is an affiliate of Related Companies, one of the largest developers and preservationists of affordable and workforce housing in the nation.

The Board has also voted preliminary approval of $258,392 in financial incentives for renovation of Asbury Terrace Apartments, a nine-story, 106-unit apartment building located at1 River Road in Tarrytown.

That building features 36 one-bedroom apartments, 45 two-bedroom apartments, 25 three-bedroom apartments, plus an apartment for the building superintendent. The building is being acquired by Mountco Construction and Development Corp. of Scarsdale which has successfully renovated 17 former HUD properties like Asbury Terrace.

GEORGE LATIMER

The total development cost is approximately $26.4 million, which includes the $5.3 million in construction costs; $15.5 million in property acquisition costs, and approximately $5.6 million in property reserves, soft costs, and fees.

The project will be financed by approximately $4.2 million in tax credit equity, $19.1 million in tax-exempt financing by the IDA and $1.4 million in deferral of fees. The project is estimated to create 19 construction jobs and retain 28 existing full-time jobs. Renovations will include new kitchens and baths, new roofing and windows and improvement to mechanical systems for greater energy efficiency.

Westchester County Executive George Latimer said the County Planning Department completed a Housing Needs Assessment in November of 2019 that found a need for investment in the  preservation of existing affordable rental units to ensure that they remain in the inventory.

“These financial incentives will help in the redevelopment of 250 much-needed affordable housing units in our County. We commend both developers for their ongoing commitment to providing quality affordable apartments in our communities,” said Latimer.

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