This summer, Construction Dive is taking a look at some of the largest multifamily projects to break ground in recent months. This is the first article in the series.
The East New York neighborhood of Brooklyn, New York, is set to receive a significant boost to its affordable housing stock.
About 2,000 income-based apartments, an arts center, day care facility and a worforce development center make up the $1 billion master plan to transform the 11-acre campus of the Christian Cultural Center, a 37,000-member house of worship in the neighborhood. The project, called the Innovative Urban Village, will include the retention of the existing church, a public parking garage supporting the church and other community amenities at the west side of the site.
“We are honored to be collaborating with our partners to fulfill our commitment to create a sustainable, mixed-income community in East New York,” said church leader the Rev. A. R. Bernard, in the news release. “This milestone speaks volumes to the belief in our vision as well as the community, and we couldn’t be more excited to begin construction.”
The CCC selected New York City-based Gotham Organization as its partner to plan and build the Innovative Urban Village. New York City-based Monadnock Development will serve as the general contractor of the project. Construction started on phase 1A in April, according to Gotham.
The project will benefit from the 420-c tax break program, which offers a full tax exemption for up to 60 years for low-income housing managed by a charitable organization. Dodge Construction Network ranked the Innovative Urban Village as one of the largest developments to break ground this spring, according to its construction starts report.
The development team recently secured a $270 million construction loan to start phase 1A, which consists of 376 affordable rental residences for individuals or families earning 30% to 80% of the area median income, according to Gotham.
Along with the residential component, phase 1A will also include about 17,000 square feet of retail and commercial space, in addition to about 45,000 square feet of below-grade parking, according to the release.
Phase 1B of the project will add an additional 441 affordable rental residences for individuals or families earning 30% to 80% of the area median income. This stage of construction will add about 10,000 gross square feet of retail and commercial space, in addition to about 12,000 gross square feet of community facility space and 62,000 gross square feet of below-grade parking.
Phase 1B will start at the end of the year, subject to city funding from the Extremely Low & Low-Income Affordability Program, according to Gotham.
Phase 1A and Phase 1B will cost an estimated $570 million and ultimately add 817 permanently affordable rental residences, as well as create retail space intended for a fresh grocery store, pharmacy, walk-in medical center and a neighborhood day care, according to the release.
The development team expects delivery of the first residences in 2026, and the overall master plan to complete over a 10-year period, according to Gotham.
The New York State Housing Finance Agency provided $170 million through tax-exempt bonds, while the New York City Department of Housing Preservation and Development provided $47 million in third-mortgage subsidiary financing. The Goldman Sachs Urban Investment Group also provided more than $143 million of low-income tax credits and brownfield cleanup program equity, according to Gotham.
“The Urban Village brings a new concept of affordable housing to East New York and provides robust programming for a growing community,” said the Rev. Bernard. “This milestone marks the beginning of an amazing response to the needs of our community.”
