New York Commits $25 billion, To Build Affordable Housing

100,000 affordable homes will be created across New York, including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes.

Governor Kathy Hochul and Mayor Eric Adams today announced the groundbreaking of Logan Fountain, a mixed-use project developed under the 2016 East New York rezoning that will transform a defunct gas station into affordable housing units, transitional housing for homeless families, and new retail space.   

“Across New York, we are making targeted investments that increase affordable housing opportunities and provide supportive and transitional homes for families that need them most,” Governor Hochul said. “Housing and economic development go hand-in-hand, and Logan Fountain is a perfect example of how Mayor Adams and I are working together to bring new homes, new services, and new business to neighborhoods in every borough.”   

New York City Mayor Adams said, “Projects like Logan Fountain are critical to revitalizing East New York and communities across the city. This project will transform a defunct gas station, offering nothing to the community, into much-needed permanently affordable housing, safe beds for our neighbors experiencing homelessness, and community-serving retail space — all with easy access to public transportation. I’m excited to see this important project moving forward and look forward to celebrating with the New Yorkers who will call it home.”

The project complements Governor Hochul’s sweeping plans to make housing more affordable, equitable, and stable. In the FY 2023 State Budget, the Governor introduced and successfully secured a $25 billion, five-year, comprehensive housing plan that will increase housing supply by creating or preserving 100,000 affordable homes across New York, including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes.    

Located at 265 Logan Street, Logan Fountain was designed as a hybrid model that will include an affordable and supportive housing component and a family shelter in a 13-story building. The eastern wing will consist of 69 affordable homes for low-income families earning between 50 and 70 percent of Area Median Income and 105 homes for formerly homeless individuals. The western wing will consist of 169 homes for homeless families served by the New York City Department of Homeless Services. The building will also include approximately 7,677 square feet of ground-floor retail space along Atlantic Avenue. The project was designed by MHG Architects and will be built by Broadway Builders, an affiliate of The Hudson Companies.  

Logan Fountain will offer an array of amenities to its residents. On the affordable and supportive housing side, amenities will include a fitness room, landscaped common courtyard with a children’s play area, multiple terraces with a garden area, bicycle storage rooms, and laundry rooms. On the transitional housing side, families will have access to outdoor and indoor childcare space, bicycle storage, and laundry room.   

Jericho Project, a venerable non-profit provider for the homeless, will introduce a host of on-site supportive services and programming for formerly homeless families in the affordable housing residences. In addition, HELP USA, a nationally-known social service provider for the homeless, will operate and provide client care coordination and services for residents in the shelter.   

Logan Fountain is conveniently located two blocks from the Norwood Avenue J train subway station and a short walk from the Euclid Avenue A train subway station.  

Construction began in August and is expected to be complete in late 2024. The development team includes The Hudson Companies, The Jericho Project, and HELP USA.   

Construction financing for Logan Fountain’s affordable and supportive housing component totalled $117 million, including tax-exempt bonds and federal Low Income Housing Tax Credits from New York State Homes and Community Renewal, along with Citi, which provided the construction period Letter of Credit, a subsidy from the New York City Department of Housing Preservation and Development, funding from former Council Member Rafael Espinal, and tax credit equity with Hudson Housing Capital as syndicator and JP Morgan Chase as an investor. A loan from Citi provided financing of $97 million for the shelter portion through a contract with the New York City Department of Homeless Services. Citi will manage the construction disbursement and monitoring for the entire project.   

The project is a key component of the 2016 East New York rezoning, which will bring $16.7 million of capital investments to the neighbourhood. In developing the investment strategy, the city engaged with the community in 2014 and created the East New York Community Plan to prioritize the need for new infrastructure, parks, community facilities, affordable housing, and support for small businesses.  

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “Developments like Logan Fountain are addressing historic economic disadvantages in Central Brooklyn’s neighborhoods and the growing need for more quality affordable housing in the city and across the state. We are thrilled to work alongside our counterparts at HPD, as well as our development partners, to provide 174 permanent and supportive homes for families and for those who have struggled with housing insecurity. The inclusion of a new DHS facility on the property will help families experiencing homelessness gain stability and transition out of the shelter as quickly as possible. Under Governor Hochul’s leadership, we will continue investing in Brooklyn with thoughtful, healthy, and sustainable developments like this one.”

As per public release, click here for more. Image source, Hochul Twitter feed