Developers Receive $223M for Massive Affordable Housing Project in East Harlem

NEW YORK CITY— L+M Development Partners, Jonathan Rose Companies & Acacia Network closed on $223 million in financing for Phase One of a 100% affordable housing project in East Harlem, called Sendero Verde. When all phases are completed, the complex will have nearly 700 units of affordable housing, community and social service space, a school, open public space, community gardens and neighborhood retail. It will build up one of the largest remaining development sites in Manhattan.

Designed by Handel Architects, Sendero Verde’s Phase One is expected to begin construction in the coming weeks and to be completed in 2022. This first phase is being built at 60 E. 112th St. and 75 E. 111th St.

The New York City Housing Development Corporation and the New York City Department of Housing Preservation and Development, with additional Resolution A funding from the New York City Council are financing Phase One with construction loans. The New York State Energy Research and Development Authority is providing additional grant funding.

The project is also funded through a letter of credit from Bank of America and a syndication of federal low-income housing tax credits and solar investment tax credits as well as New York State Brownfield Tax Credits to Bank of America.

Phase One of Sendero Verde will include 360 units of affordable housing and a superintendent’s unit, space for a school with a full gymnasium, an area for the Union Settlement Association, and an 18,000-square-foot public courtyard with a children’s play area, adult outdoor exercise equipment, seating areas and a stage for community events.

Community garden groups that previously inhabited the vacant lot on which Sendero Verde is being constructed are being relocated within the development in coordination with NYC Parks’ GreenThumb program and local community garden groups.

The Phase One structures will provide 30% of its units to serve extremely low-income households, including many residents who formerly were homeless. Another 20% of units will be available for families earning less than 50% of area median income. The remaining units will be affordable to households earning 60% AMI, 80% AMI and 90% AMI.

The developers have partnered with PROMESA Inc, an affiliate of Acacia Network, which has been an integral part of the East Harlem community for over 60 years, with extensive expertise in supportive housing. PROMESA Inc. will provide social services for the project’s formerly homeless population and will operate an on-site social services program.

The services will include offering access to a resident social services director, occupational therapists, housing specialists, case managers, art and dance classes and 24-hour security. To accommodate the social services program, Sendero Verde will include 2,700 square feet of dedicated space for PROMESA Inc., including eight private offices, a medical exam room and a conference room.

Upon completion of its second phase, Sendero Verde is expected to be the largest development in the country to meet Passive House energy efficiency standards. Passive House refers to a voluntary standard that requires lower energy for heating and cooling. This will be achieved through air-tight construction to reduce draft and energy loss, triple-glazed windows, mechanically ventilated spaces with energy recovery and individually heated and cooled units. The housing complex is expected to use 60% to 70% less energy than similar buildings normally would.

“By creating affordable, sustainably designed housing, we can work to both break the cycle of poverty that disrupts so many people’s lives, and dramatically reduce the carbon footprint of large buildings,” says Handel Architects partner Blake Middleton. “It matters what choices we make when we design buildings, especially choices that affect energy use and resiliency. Reducing the carbon footprint of buildings is no longer optional.”

Phase Two of Sendero Verde will include approximately 350 additional units of 100% affordable housing. It will be constructed at 50 E. 112th St. with a cost estimated to be in a similar ballpark as the first phase.