A former New York City tuberculosis hospital will be transformed into affordable and supportive housing after receiving key financing.
Mortgage banking firm Merchants Capital announced it has secured $21 million using a Freddie Mac unfunded forward low-income housing tax credit (LIHTC) cash loan on behalf of the developer Dunn Development Corp.
The development—known as T-Building—will utilize the largest 9% LIHTC allocation ever made in New York City, according to project officials. The New York City Department of Housing Preservation and Development (HPD) awarded approximately $3.3 million in 2019 credits to the project last year.
Formerly the Triboro Hospital for Tuberculosis, T-Building will provide much-needed affordable and supportive housing in the heart of Jamaica, Queens. The historic renovation of the property has begun and is anticipated to be completed by July 2021, with lease-up beginning in August 2021.
“We are proud to continue supporting projects that allow homeless families to live in dignity,” says Matthew Wambua, executive vice president at Merchants Capital. “Securing the largest allocation ever made in New York City is a great achievement for the development team, and we look forward to assisting with projects that serve an immediate need in our community.”
In addition to LIHTCs, the historic rehab project is receiving federal and state historic tax credits. The total tax credit equity investment is $55.2 million, according to officials. Red Stone Equity Partners syndicated all of the equity on behalf of investor Bank of New York Mellon.The 200-unit development will provide a mix of supportive housing for special needs and homeless tenants, as well as affordable housing for low- to moderate-income households.
“Not only are we turning this 1938 hospital into critically needed homes for formerly homeless, and low- and middle-income New Yorkers, we are restoring an architectural gem that will enhance the entire neighborhood,” says Martin Dunn, president of Dunn Development.
T-Building will feature an attended lobby, on-site social services offices, two community rooms, a restored library and computer room, an exercise room, a laundry room, indoor bicycle parking, roof terraces, and an outdoor children’s play area. The site also includes a surface parking lot with approximately 100 spaces.
Replicating the success of other integrated supportive housing projects developed by Dunn Development Corp., T-Building will feature on-site services and 24-hour front desk coverage provided by CAMBA, a nonprofit, supportive housing service provider.
