“With the cost of living in New York City rising each year, developments like Michelangelo Apartments serve as a safe-haven from the threats of displacement in a rapidly gentrifying area,” says Michael T. Rooney, Sr., principal of MDG Design + Construction, the developer for the renovation project. “HUD's Rental Assistance Demonstration program enables Mitchell-Lama housing to both remain in New York City's affordable housing stock, and receive the necessary repairs to ensure a quality home for low-income New Yorkers. In order to keep housing affordable for thousands of New Yorkers, Congress must make funding RAD and other programs a priority.”

MDG Design + Construction is part of an investor group, which includes the Housing Partnership, that recently purchased the Michelangelo Apartments for $78.1 million.

The New York State Homes and Community Renewal is providing $82.5 million in tax-exempt bond financing, which will finance a $39.3-million permanent loan, a $9.5-million IRP loan, and a $33.7-million short-term construction loan from Citi in its role as a Fannie Mae Delegated Underwriting and Servicing lender. In addition, Citi is providing $44.1 million in tax credit equity, which was arranged by Raymond James, and a $33.7-million rehabilitation period bridge loan. Through HUD's RAD program, Michelangelo Apartments will receive a project-based rental assistance contract for 406 units, and 66 additional units will house eligible tenants who previously had portable Section 8 vouchers. The new Section 8 contract guarantees the affordability of the development.

Residents will share use of Michelangelo Apartments' new 71,000-square-foot courtyard with the Sheltering Arms Early Childhood Education Center that will include a playground, park, walkways, and sitting areas.

NEW YORK CITY—Federal, state, city and private funding sources are providing financing of approximately $160 million for the renovation and preservation of the 494-unit Michelangelo Apartments affordable housing complex in the Bronx.

The 43-year-old Mitchell-Lama development will be renovated and preserved as affordable for an additional 40 years through HUD's Rental Assistance Demonstration Program. Michelangelo Apartments was built in 1974 using a HUD Section 236 loan guarantee. It contains four towers (one 27-story tower, one 12-story tower, and two 11-story towers) featuring 80 studio apartments, 126 one-bedroom apartments, 191 two-bedroom apartments 77 three-bedroom apartments, and 20 four-bedroom apartments with 50,000 square feet of retail space and underground parking. The development leveraged HUD's Rental Assistance Demonstration program that guarantees residents pay no more than 30% of their income in rent.

The redevelopment effort at Michelangelo Apartments is securing state funding as well as part of Gov. Andrew Cuomo's $1-billion House NY initiative to transform 8,600 aging state-financed Mitchell-Lama apartments in critical need of repairs and upgrades into quality, safe homes by 2018.

Michelangelo Apartments will be renovated with tenants in place. Renovations and improvements to the property will include full kitchen and bathroom renovations, conversion to an energy efficient hydronic boiler system from electric heaters, elevator modernization, facade repairs, lobby modernization, public hall beautification, conversion to energy efficient LED lighting throughout the complex, and landscaping improvements throughout the site.

“With the cost of living in New York City rising each year, developments like Michelangelo Apartments serve as a safe-haven from the threats of displacement in a rapidly gentrifying area,” says Michael T. Rooney, Sr., principal of MDG Design + Construction, the developer for the renovation project. “HUD's Rental Assistance Demonstration program enables Mitchell-Lama housing to both remain in New York City's affordable housing stock, and receive the necessary repairs to ensure a quality home for low-income New Yorkers. In order to keep housing affordable for thousands of New Yorkers, Congress must make funding RAD and other programs a priority.”

MDG Design + Construction is part of an investor group, which includes the Housing Partnership, that recently purchased the Michelangelo Apartments for $78.1 million.

The New York State Homes and Community Renewal is providing $82.5 million in tax-exempt bond financing, which will finance a $39.3-million permanent loan, a $9.5-million IRP loan, and a $33.7-million short-term construction loan from Citi in its role as a Fannie Mae Delegated Underwriting and Servicing lender. In addition, Citi is providing $44.1 million in tax credit equity, which was arranged by Raymond James, and a $33.7-million rehabilitation period bridge loan. Through HUD's RAD program, Michelangelo Apartments will receive a project-based rental assistance contract for 406 units, and 66 additional units will house eligible tenants who previously had portable Section 8 vouchers. The new Section 8 contract guarantees the affordability of the development.

Residents will share use of Michelangelo Apartments' new 71,000-square-foot courtyard with the Sheltering Arms Early Childhood Education Center that will include a playground, park, walkways, and sitting areas.