Settlement Housing Fund (SHF) has acquired a 58-unit building with the help of a new program in New York City.
The purchase of 1415-1417 Wythe Place in the Mount Eden neighborhood of the Bronx is one of the first wave of projects acquired for rehabilitation and preservation through the city’s Neighborhood Pillars program.
To date, the city Department of Housing Preservation and Development (HPD) has facilitated the acquisition of five projects intended for the Neighborhood Pillars program. These projects contain a combined total of approximately 10 buildings with 339 apartments. The average rehabilitation investment need is approximately $44,000 per unit. Through this program, residents will benefit from building and apartment renovations, rent-stabilized leases, and other affordability protections. Fifty percent of the 339 units will be permanently affordable.
"Settlement Housing Fund is proud to partner with HPD and the Community Preservation Corp. (CPC) to ensure that 1415-1417 Wythe will remain affordable and in good condition for the long term. Neighborhood Pillars is an innovative program that strengthens neighborhoods by investing in the places people live. New Yorkers shouldn't have to choose between affordable rent and quality housing," said Alexa Sewell, SHF president.
The development is a five-story walk-up building that was constructed in the early 1920s. Planned renovation work will likely include upgrades to the building’s electrical systems, the installation of a new roof, and repairs to the façade and floors. The rehabilitation loan is expected to close at the end of the year.
The Neighborhood Pillars program was launched in December 2018. It helps nonprofits and mission-driven organizations acquire and preserve buildings, including ensuring affordability of unregulated units and investment in housing quality. The program includes a Down Payment Assistance Fund and construction and permanent financing through HPD and the city Housing Development Corp. (HDC). The Neighborhood Pillars Down Payment Assistance Fund was created with the assistance of CPC and a $2 million commitment from the Wells Fargo Foundation. It allows for technical and financial assistance to be used by qualified nonprofit organizations as a downpayment or deposit on a contract to acquire properties and cover limited pre-acquisition costs. Organizations using the Neighborhood Pillars Down Payment Assistance Fund are eligible for acquisition financing through the New York City Acquisition Loan Fund.
CPC originated a New York City Acquisition Fund loan in the amount $10.3 million to assist SHF with the project’s acquisition and predevelopment costs. CPC will also work with SHF to provide permanent financing and funds for renovation through a Fannie Mae Multifamily Affordable Housing loan in tandem with financing from HPD.