$95M Mount Vernon Affordable Housing Project Breaks Ground
Real Estate In-Depth | July 16, 2018
MOUNT VERNON—New York State Homes and Community Renewal announced on June 27 the start of construction of an approximately $95 million, 100% affordable housing development called 22 South West in Downtown Mount Vernon.
The mixed-use project being built by MacQuesten Development is immediately adjacent to the Mount Vernon West Metro-North Station, and will feature 189 affordable housing units and 4,200 square feet of street level retail space all built on former brownfield site. It will be designed to LEED Silver standards or greater.
22 South West is central to the Mount Vernon Revitalization Plan, which is transforming the city’s downtown into a 24-hour, walkable community by mixing transit-oriented higher-density housing with retail and other commercial activity. From the neighboring Metro-North Station, it typically takes fewer than 30 minutes to get to Grand Central Station in New York City. The development will be built on the site of a former auto mechanic and gasoline station, and is participating in the New York State Brownfield Clean-up Program to remediate the environmental hazards left behind.
Of the 189 mixed-income apartments, 131 will be affordable to families making less than 60% of the area median income, 27 will be for families earning no more than 80%of the AMI, and 30 for those earning no more than 110% of AMI. One apartment is set aside for the superintendent.
The building will also include significant amenities, including views of the Manhattan skyline for apartments on higher floors, a spacious outdoor terrace area on the 17th floor with views of the New York City skyline and Hudson River, a furnished indoor lounge area on 17th floor, a fitness facility, and a central laundry room on the third floor with a children’s play area adjacent to it.
New York State Homes and Community Renewal has provided $52.3 million in financing for the project in the form of tax-exempt bonds and a subsidy loan. In addition, state and 4% “as-of-right” federal Low-Income Housing Tax Credit allocations will generate approximately $31.9 million in equity. Other funding includes a payment in lieu of taxes agreement with the City of Mount Vernon.
New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “22 South West Street is transforming underutilized and environmentally damaged property in the heart of Mount Vernon into affordable housing that integrates with the community, and is steps away from transit and a quick ride to Grand Central Station. By bringing together housing, retail, and transit we are creating opportunities for New Yorkers to support all that Mount Vernon has to offer, strengthening its economy.”
Rella Fogliano, CEO of MacQuesten Development, said, “I’m proud to be leading this transformative project that will continue my family’s long tradition of investing in Mount Vernon. 22 South West Street will have it all: every unit is affordable and offers convenient transit access and all the modern amenities of a luxury developments. Along with our partners in the private and public sectors, we’re helping prove that Mount Vernon’s best days are still in front of it.”
Todd Gomez, market executive in the Community Development Banking Group added, “Bank of America Merrill Lynch is proud to help fund this affordable, transit-oriented and environmentally friendly project. The bank is committed to building strong communities and supporting sustainable developments that can help address climate change. When we have a chance to invest in a project like 22 South West that does both, it’s really a win-win for us and the communities that we serve.”