First Phase of $189M Affordable Development Tops Off in The Bronx

First Phase of $189M Affordable Development Tops Off in The Bronx

Photo: S:US and Bronx Pro Group.

September 29, 2023
Multi-Housing News
By Diana Firtea

Services for the UnderServed and Bronx Pro have topped off Starhill Phase I, a 326-unit affordable housing community in the Bronx.

Marvel Architects serves as the main architect, with Home Builders as the general contractor. Other partners involved in the project include Enterprise, Chase, Hirschen, Singer & Epstein, Olive Branch Consulting, AKRF and Steven Winters Associates.

The financing for the $189 million project includes:

  • $20.6 million in permanent tax-exempt bonds
  • Federal Low-Income Tax Credits expected to generate $80.5 million in equity
  • $31.5 million in subsidy from New York State Homes and Community Renewal
  • 5 million from The New York City Department of Housing Preservation and Development’s Supportive Housing Loan Program
  • $1 million from The New York City Council

Starhill Phase I will comprise 200 units designated for individuals experiencing homelessness and substance use disorder or co-occurring disorders, while 126 units will be reserved for households earning between 30 and 80 percent of the area median income. One unit will be set aside for an on-site superintendent. S:US will provide supportive services such as case management, family counseling, job readiness training and financial literacy workshops, while the residents will also benefit from rental subsidies.

The 14-story building will feature a connected one-story amenity building, a rear yard, an urban farm, a recreational area on the second-floor terrace, 24/h security and parking spaces. The interior amenities will include a fitness center, a game room, a children’s playroom and laundry facilities.

Starhill’s phase two is scheduled to break ground next year and will bring additional affordable housing options. With the expected completion in 2027, the property will comprise a total of approximately 570 apartments of supportive and affordable housing.

Starhill is located at 1600 Grand Ave. in the Bronx’s Morris Heights neighborhood. Originally developed in the 1900s as the first Bronx hospital for cancer patients, the 2-acre site was purchased by S:US in 1979. After it was converted into a residential addiction treatment center, the building was demolished in 2019.

Meeting demand for affordable units across New York

The start of construction at the Starhill project site was possible due to the Jerome Avenue rezoning plan, an initiative to facilitate the development of mixed-use and mixed-income housing along 73 blocks of Jerome Ave. Approved by The New York City Council in 2018, the initiative is expected to create around 4,600 new apartments, with over 1,000 units of affordable housing.

Starhill Phase I and II are part of Governor Kathy Hochul‘s plan to create more affordable housing. In January 2022, the Governor committed $991 million through bonds and subsidies for the development, preservation and rehabilitation of 3,242 affordable, supportive and sustainable units across New York State.

Last month, Hochul announced that financing totaling $406 million was awarded through bonds and subsidies to create approximately 800 affordable and sustainable homes in five transit-oriented developments. The five projects received $286 million in tax-exempt housing bonds and $120 million in subsidies.

As part the 2023 budget, the Governor also secured funding for a five-year, $25 billion Housing Plan for the creation and preservation of 100,000 affordable homes in urban and rural areas across New York.

Read the original article here.

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