Center Development Corporation (CDC) and LIHC Investment Group Announce the Preservation and Rehabilitation of Affordable Housing in the East Village
New York, NY (October 22, 2019) — Councilwoman for the 2nd District of New York City Carlina Rivera, Center Development Corporation (CDC) and LIHC Investment Group invited local and federal housing officials and residents to The Boys’ Club of New York today, Tuesday, October 22, 2019 to celebrate the commencement of the preservation and rehabilitation of project-based Section 8 housing in the East Village.
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The event’s featured speakers include Councilwoman Rivera and Department of Housing Preservation and Development Associate Commissioner Kim Darga. Before and after photos will be displayed by CDC of some of the already renovated units at 199 Avenue B. The building is one of several Section 8 properties being preserved as the result of an agreement between CDC, LIHC, New York City Department of Housing Preservation and Development (HPD), New York City Housing Development Corporation (HDC) and the US Department of Housing and Urban Development.
“We are in the middle of a housing crisis in New York City, and the creation and preservation of affordable housing in the Lower East Side has been my priority as a Council Member just as it was when I was a community organizer. I am proud to support CDC, LIHC, and HPD in the preservation and rehabilitation of the affordable units at 199 Avenue B. By preserving and rehabilitating these 243 units, we are guaranteeing affordable housing units for hundreds of families. This is a bold solution for ensuring affordability in our community for decades to come, and I look forward to working on similar projects in the future,” said Councilwoman Carlina Rivera.
The agreement, which was announced last April, covers 243 units co-owned by CDC and LIHC in the East Village; guaranteeing they will be maintained as affordable for individuals and families whose income does not exceed 50 percent of AMI for at least the next 40 years. The 243 units are spread across nine distinct buildings around Tompkins Square Park, in one of Manhattan’s most sought-after neighborhoods. The preservation was possible, in part, through tax-abatements under Article XI as well as $50 million in HUD-insured financing provided by Greystone, the country’s #1 HUD lender for multifamily and healthcare loans, secured by CDC and LIHC earlier this year.
Co-owners CDC and LIHC are investing upwards of $7.5 million to make repairs and fully renovate apartments across the portfolio, for an average spend of $30,000 per unit. The renovations on display included new kitchens and bathrooms, along with upgraded flooring, drywall and the installation of LED lighting without any increase in rent to the tenants. Also, approximately 25 units will have modified bathrooms and kitchens pursuant to HPD’s “Aging in Place” program.
“From East Harlem to the East Village, we invest in affordable housing to improve people’s lives and help keep our neighborhoods intact,” said Andrew Gendron, Principal at LIHC Investment Group. “Section 8 housing is exceedingly vulnerable to neglect and loss, which is why we are so pleased to have the support of HPD, HDC, HUD and our partners in pursuing preservations that deepen affordability and allow for renovations so these homes can be maintained far into the future.”
CDC and LIHC have co-owned the aforementioned properties since 2004 and have administered and maintained them as deeply affordable housing. They were originally part of a larger portfolio of 25 buildings and lots developed by CDC more than 40 years ago as a Section 8, HUD-financed, rehabilitation project.
