- Posted at 1:26, January 02, 2014
- By Russ Bleemer
The city early this week announced that it has agreed to a plan to finance construction at 250 Ashland Place for new affordable housing in downtown Brooklyn.
The site is vacant now, but the NYC Department of Housing Preservation and Development and the NYC Housing Development Corp., will turn it over to Gotham Organization and DT Salazar Inc. for a $278 million development plan, "to break ground on the project in the coming weeks."
The new 596-unit building will be a 52-story tower near the Atlantic Yards development, just about a block away from the Brooklyn Academy of Music. The city's press release, HERE, says that 282 of the new units being permanently affordable to low-income and middle-income New Yorkers. Retail and about 8,000 square feet of "new office space for cultural institutions" also will be provided.
HPD said it provided the land "at a nominal cost," and will allocate 4% Low-Income Housing Tax Credits that will provide about $19.3 million for the project. The HDC, a city agency that issues bonds and otherwise finds development financing, is providing $177.5 million--$33 million in tax-exempt bonds, $2.5 million via an HDC subordinate loan, and a $142 million loan originated by HDC "and participated to a consortium of private lenders comprised of Wells Fargo, TD Bank and Capital One," notes the press release.
The new building lifted Mayor Bloomberg's affordable housing construction and preservation tally over 160,000 units; others that the administration, which exited yesterday, are being negotiated and will be announced when finalized.