Green Rental Breaks Ground in East Harlem

NEW YORK CITY-Jonathan Rose Cos. broke ground Tuesday for what reportedly will be East Harlem’s first–ever affordable and mixed-income residential rental development designed to LEED Silver standards. A partnership between Jonathan Rose Cos. and Lettire Construction, the 12-story, 185-unit apartment building will be located at the corner of 124th Street and Second Avenue.

According to a release, a $67.5-million financing package for the land acquisition and construction of the project–to be known as Tapestry–has been arranged. The package was put together from a combination of:

• Tax-exempt bonds provided by the New York City Housing Development Corp., through its Mixed Income Housing Program;
• Permanent credit enhancement provided by Freddie Mac via Wachovia Multifamily Capital as delegated underwriter, and;
• Construction credit enhancement and swap rate provided by JP Morgan Chase Bank.

HDC is providing subordinate low interest loans.

Through an investment fund, PNC Bank is purchasing the 4% low income housing tax credits that come as part of HDC’s MIHP to provide low income housing tax credit equity. The credits are administered by HPD. Additional financial support related to energy conservation and green design is coming from the New York State Energy Research and Development Authority and the national Green Communities program.

In a statement, Robert C. Lieber, deputy mayor for economic development, comments, “As our city continues to grow, it is critical that we set the stage for projects that strengthen our communities and create new housing opportunities for all New Yorkers and that’s just what we did with the rezoning of 125th Street and the Tapestry project.” He adds that the project will help the Bloomberg administration reach its goal of 165,000 affordable housing units.