Vitus Group announced it has increased its New York Citypresence with the purchase and rehabilitation of two affordablehousing properties on Staten Island.
Fairway Gardens and Richmond Gardens will receive an $8 million makeover that will include replacement of roofs, windows, doors, water heaters and boilers, kitchen cabinets, and appliances. Improvements will also include renovated bathrooms and the installation of security systems.
The deal extends the affordability of the homes for another 30 years.
“It is extremely gratifying to help preserve affordable housing in New York City, where it is in such short supply,” said Stephen Whyte, Vitus Group managing director, in a statement. “I’m also very pleased that the improvements we’re planning for Fairway Gardens and Richmond Gardens will dramatically improve the quality of life of more than 200 families.”
The development firm is headquartered in Seattle, with offices in New York City, San Diego, and Hawaii. The new acquisition is Vitus Group’s third project in New York City.
Fairway Gardens and Richmond Gardens were purchased and will be rehabilitated with support from NYS Homes and Community Renewal (HCR), which is issuing approximately $23 million in tax-exempt bonds and providing low-income housing tax credits through the Housing Finance Agency. The tax credits will raise approximately $11 million in equity from syndicator Alliant Capital. Freddie Mac is also supporting the project by providing credit enhancements.
At least 210 of the projects’ 219 units will be affordable to households with incomes of 60 percent or less than the area median income, and Vitus will maintain subsidy agreements with the Department of Housing and Urban Development, ensuring that residents will pay no more than 30 percent of their income in rent.
The New York City Council, on the recommendation of the Department of Housing Preservation and Development, has provided a partial real estate tax exemption, which will also help maintain affordability at the two developments.
The rehabilitation, which will include many energy-efficient features, is expected to be completed within one year.
Fairway Gardens consists of six two-story buildings completed in 1947. The development has 36 one-bedroom and 41 two-bedroom units in addition to a superintendent’s apartment.
Richmond Gardens features nine buildings completed in 1984. There are 35 one-bedroom, 69 two-bedroom, and 36 three-bedroom apartments. There’s also a super’s unit.
