BRONX, N.Y.--(BUSINESS WIRE)--Phoenix Realty Group (PRG), Hudson Valley Property Group (HVPG), and Belveron Partners are pleased to announce the completion of the $14 million renovation project for Keith Plaza and Kelly Towers, located in the Bronx, New York. Councilman of the 15th District, Ritchie Torres, HDC COO & General Counsel, Richard Froehlich, Assistant Commissioner, Julie Walpert, and HUD Deputy Regional Administrator, Mirza Orriols, joined the development team at the ribbon cutting ceremony Friday, May 12, 2017.
The acquisition, preservation and renovation of Keith Plaza and Kelly Towers provided a unique and innovative financing solution to prevent the loss of 613 units of workforce and affordable housing from New York City’s housing stock. Keith Plaza is one of the early preservation projects in the nation utilizing the Rental Assistance Demonstration II (RAD II) program, which included the issuance of a new 20-year, Section 8 Project-Based Rental Assistance (PBRA) contract. PRG and HVPG acquired the properties in December of 2015 with the intention of preserving them as affordable workforce housing for the long-term. The buildings were renovated over the over the course of 2016 and 2017.
Both properties were built in 1975 under the Mitchell Lama Housing Program restricted to 125% AMI rents. Mitchell Lama workforce housing properties are some of the most at-risk affordable housing properties in New York City. The preservation of Keith and Kelly ensures that these properties will remain quality, affordable housing in the Bronx community for decades to come.
“These important preservation projects will ensure that working class families and retired seniors who reside here have a quality, affordable place to call home for years to come. We plan to follow the City’s lead and continue to work to preserve affordable housing throughout the five boroughs.” Jason Bordainick, Managing Partner, Hudson Valley Property Group.
Financing was provided by the New York City Housing Development Corporation and the New York City Department of Housing Preservation and Development, in addition to an equity investment by Belveron Partners and the developers Hudson Valley Property Group and Phoenix Realty Group. More specifically, Keith Plaza and Kelly Towers were financed by approximately $40 million in tax-exempt recycled bonds and an additional $7.7 million secured by 236 Mortgage Decoupling Interest Reduction Payments. The total development cost surpassed $88 million and the renovation cost exceeded $14 million. Key upgrades consisted of common area and unit renovations to improve resident comfort and safety.
“PRG is proud of its longstanding commitment to affordable housing. In supply constrained markets like the New York City metro area, the preservation of existing properties is critical to meeting the city’s needs for affordable housing,” said Ron Orgel, Managing Director at PRG. “We are excited about the completion of this project and wish the residents many years of happiness in their new homes.”
“The unwavering support of the multitude of New York agencies, Hudson Valley’s brilliant structuring, and Phoenix’s flawless execution; this was a herculean effort in which Belveron is fortunate to have invested.” said Louis A. Harrison, Partner at Belveron. “I am delighted to play a small part in improving residents’ lives.”