HIT Invests $49.3 Million to Support Affordable Housing in New York City
NEW YORK, NY - The HIT is participating in the financing of the affordable housing portions of two large mixed-income, 100% union-built, multifamily projects in New York City with its recent purchase of $49.3 million of New York State Housing Finance Agency (NYSHFA) bonds. TF Cornerstone is the developer of both projects. These investments are expected to create an estimated total of 520 union construction jobs and 349 apartments affordable to low income families.
With its purchase of $31 million of a $71 million issuance of tax-exempt variable rate bonds, the HIT is helping to finance the 206-unit affordable component of 606 West 57th Street in the Hell’s Kitchen in Manhattan. Wells Fargo Bank is providing a Letter of Credit during the construction period.
When complete, the residential component of the four new buildings will contain 1,028 units, with 20% available to residents making up to 60% of Area Median Income (AMI), currently $54,360 for a family of four. Construction of the affordable portion is expected to create an estimated 354 jobs for members of New York’s building and construction trade unions.
The HIT is also helping to finance 143 affordable units in Brooklyn, at 33 Bond Street, with its $18.3 million purchase of a $35 million tax-exempt variable rate bond issuance. M&T Bank is providing a Letter of Credit during the construction period.
The 25-story building, when complete, will consist of 714 residential units, with 20% affordable to individuals and families making up to 60% AMI. Construction of the affordable portion is expected to create an estimated 166 union construction jobs.
“The HIT is pleased to use union and public pension capital to invest in expanding housing opportunities for low-income New Yorkers. We are happy to join with TF Cornerstone, the New York State Housing Finance Agency, Wells Fargo, and M&T in financing these important developments,” said Eric W. Price, HIT’s Executive Vice President. “These projects will bring critically needed affordable housing to Manhattan and Brooklyn, while creating jobs that will help sustain the neighborhoods. It’s a win-win for the HIT’s investors and the community.”
Under its New York City Community Investment Initiative, which it started in 2002, the HIT has invested $971 million in 48 projects in the New York City area, leveraging nearly $2 billion, and creating or preserving over 32,200 housing units, with close to 96% affordable and workforce housing. Construction at these projects is creating an estimated 5,450 union construction jobs and over 10,900 total jobs across industry sectors. These projects have generated an estimated $1.8 billion in total economic benefit to local communities in the New York City area, including over $770 million in personal income to residents, and have produced an estimated $120 million in state and local tax and fee revenue.
Job and economic benefit estimates (in 2015 dollars) are calculated by Pinnacle Economics and the HIT using an IMPLAN input-output model based on HIT project data and secondary source materials.