NEW YORK CITY-A ten-building stretch on West 135th Street in the heart of Harlem has become the neighborhood’s “greenest” block. In collaboration with private and public investment groups, developer Jonathan Rose Cos., the US Department of Housing and Urban Development, Enterprise Community Partners and the New York City Department of Housing Preservation and Development have completed a $50.8-million tenant-in-place renovation of 198 units located from 107 to 145 W. 135th Street here.
The project is the first in the country to benefit from HUD’s Green Retrofit Program using federal stimulus funds, which Jonathan F.P. Rose, president of Jonathan Rose Cos., describes as “essential” due to the lack of funding available for new construction. “The solution is to have responsible owners purchase the existing stock as it comes up for sale, extend the period of committed affordability and make green capital and operating improvements,” Rose says in a statement after a ribbon-cutting ceremony on September 12. “Carrying out these goals on a large scale requires committed, innovative, responsive financiers.”
Rose acquired 107-145 W. 135th in December 2008 with the help of $22.5 million from the New York City Acquisition Fund, a public/private partnership fund that provides acquisition and predevelopment loans for creating and preserving affordable housing. The developer also used its own Rose Smart Growth Investment Fund devoted to green repositioning. At the time, the company worked directly with HUD officials to obtain a 15-year Section 8 contract renewal to preserve the affordability of the buildings.
In total, Enterprise provided $22.5 million in acquisition financing and $10.1 million Low Income Housing Tax Credit equity, while HDC issued more than $24.1 million in tax-exempt bonds to refinance the project for the construction phase, including $22.4 million for the permanent financing. The retrofitting initiative also received approximately $5.9 million from HPD HOME, $3.6 million from HUD’s Green Retrofit Program, as well as an additional $4.8 million of tax credit equity from Enterprise.
“Preserving and retrofitting affordable housing, especially while tenants remain in the building, is a complex process. But the end result-ensuring that homes remain affordable and healthier for hundreds or residents-makes it all worthwhile,” says Abby Jo Sigal, vice president and New York market leader at Enterprise, in a statement. The project was completed by utilizing Enterprise’s “Green Communities” criteria, which was designed to yield lower utility costs, create a healthier environment and increase sustainability. The guidelines were also adopted by the HPD in January 2011.
Upgrades and improvements throughout the 10, six-story buildings include new high-efficiency boilers, repairs to exterior brick and stucco, LED light fixtures and bulbs, non-toxic paints, recycled flooring and the addition of Energy Star appliances, among other things. Officials also anticipate a state and federal grant to offset a portion of the costs for a solar panel installation.
Overall, the green rehabilitation of the buildings is estimated to produce 25% in utility savings. “Together, we have helped ensure that these 198 families continue not only to have an affordable home, but also to have the safe, sustainable and quality homes all New Yorkers deserve,” Sigal says.
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