Construction Starts on $189-Million Affordable Housing Project in the Bronx

Real Estate In-Depth | July 28, 2022

Among the dignitaries at the Starhill groundbreaking were Bronx Borough President Vanessa Gibson, New York City Mayor Eric Adams and New York Gov. Kathy Hochul.

NEW YORK—New York Gov. Kathy Hochul and New York City Mayor Eric Adams were among the dignitaries on hand for the July 27th groundbreaking on a $189-million affordable housing development in the Morris Heights section of the Bronx.

Starhill Phase I will feature 326 affordable apartments, including 200 homes with supportive services for individuals experiencing homelessness.

“This development will provide safe, stable homes for more than 300 residents of The Bronx and offer critical resources and amenities to support the Morris Heights neighborhood in the long term,” Gov. Hochul said. “As the national affordability crisis drives rent and other costs to new highs, my administration is tackling the crisis head-on with a $25 billion plan to deliver high-quality affordable and supportive housing that will help to stabilize and improve New Yorkers’ lives. I thank Mayor Adams, the City Council, and other stakeholders for their partnership on this project, and look forward to their continued engagement in strengthening New York communities.”

“Safe, stable, and affordable housing is fundamental to a prosperous, inclusive city, and we are ensuring no New Yorker is left behind when it comes to having a roof over their heads,” added Mayor Adams. “Our administration has a plan to kickstart the creation of supportive homes for New Yorkers who need them most, and we are moving full speed ahead.”

Starhill Phase I is part of Gov. Hochul’s plans to make housing more affordable, equitable, and stable. The governor has introduced and successfully secured, in the FY2023 Enacted Budget, a new $25-billion, five-year, comprehensive housing plan that will increase housing supply by creating or preserving 100,000 affordable homes across New York including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes.

Starhill Phase I will consist of a 14-story multifamily building and a connected one-story amenity building. The two-acre site had been occupied by a former hospital being used as a residential treatment center, which has since been demolished. The mixed-use development was made possible through the 2018 Jerome Corridor Rezoning.

The new building will include 200 apartments reserved for adults experiencing homelessness, including those with a substance use disorder or co-occurring disorder. These residents will have access to on-site supportive services and rental subsidies funded through the Empire State Supportive Housing Initiative and administered by the New York State Office of Addiction Services and Supports.

Services will include individual case management, family counseling, job readiness training, and financial literacy workshops. These services will be voluntary and individualized to each tenant’s needs while promoting independent living skills and maintaining stable tenancy. The service provider is Services for the UnderServed.

The remaining apartments will be reserved for households earning between 30% and 80% of the area median income or less. There will be one apartment for an on-site superintendent.

Residential amenities will include a rear yard and a passive recreation area on the second-floor terrace. Interior amenities will include on-site social services, a fitness room, on-site laundry, a children’s playroom, a computer room, and free internet access available in each unit. In addition, there will be 24-hour security located at the entrance.

The developers for Starhill Phase I are Bronx Pro and S:US. State financing for Starhill Phase I includes $20.6 million in permanent tax-exempt bonds, Federal Low-Income Tax Credits that will generate $80.5 million in equity and $31.5 million in subsidy from New York State Homes and Community Renewal. The New York City Department of Housing Preservation and Development is providing $31.5 million through the Supportive Housing Loan Program. The New York City Council is providing $1 million.

Starhill Phase II is expected to include approximately 244 additional affordable and supportive apartments.

The development will provide safe, stable homes for more than 300 residents of The Bronx and offer critical resources and amenities to support the Morris Heights neighborhood in the long term.