Westchester IDA Grants Preliminary Approvals For Renovations of Affordable Housing Projects
Real Estate In-Depth | October 6, 2020
WHITE PLAINS—The Westchester County Industrial Development Agency recently granted preliminary approval of $912,062 in financial incentives for the renovation of two affordable housing developments in Mount Vernon and Tarrytown.
The two projects comprise a total of 250 units of affordable housing.
The IDA Board gave preliminary approval of $653,672 of financial incentives and $27.5 million in tax-exempt bond financing for renovating Ebony Gardens, a multi-family complex in Mount Vernon that is comprised of seven garden-style apartment buildings with a total of 144 units of affordable housing targeting tenants earning 60% of area median income.
Renovations will include upgraded kitchens and baths, new windows, new roofs, upgrading of facades and upgrading of mechanical systems. In addition, there will be a new amenities building with a fitness room, business center and community room. The complex will be wired for WiFi that will be provided free of charges to residents.
Located at 138 South Sixth Ave., Ebony Gardens was built in the early 1980s and was in continuous operation as housing for low-income families. The $7.9-million renovation project is expected to create 41 construction jobs and create and retain 40 full-time jobs. The developer of the project is an affiliate of Related Companies, one of the largest developers and preservationists of affordable and workforce housing in the nation.
The IDA Board also voted for the preliminary approval of $258,392 in financial incentives for the renovation of Asbury Terrace Apartments, a nine-story, 106-unit apartment building located at 1 River Road in Tarrytown. The building features 36 one-bedroom apartments, 45 two-bedroom apartments, 25 three-bedroom apartments, plus an apartment for the building superintendent. The building is being acquired by Mountco Construction and Development Corp. of Scarsdale, which has successfully renovated 17 former HUD properties like Asbury Terrace.
The total development cost is approximately $26.4 million, which includes the $5.3 million in construction costs; $15.5 million in property acquisition costs, and approximately $5.6 million in property reserves, soft costs, and fees. The project will be financed by approximately $4.2 million in tax credit equity, $19.1 million in tax-exempt financing by the IDA and $1.4 million in deferral of fees. The project is estimated to create 19 construction jobs and retain 28 existing full-time jobs. Renovations will include new kitchens and baths, new roofing and windows and improvement to mechanical systems for greater energy efficiency.
“At my direction, the County Planning Department completed a comprehensive Housing Needs Assessment in November of 2019. One of the key findings of that study is that the county needs to invest in the preservation of existing affordable rental units to ensure that they remain in the inventory,” said Westchester County Executive George Latimer. “These financial incentives will help in the redevelopment of 250 much-needed affordable housing units in our county. We commend both developers for their ongoing commitment to providing quality affordable apartments in our communities.”
“The IDA is very pleased to provide preliminary approval of incentives as well as tax-exempt financing for these two projects which represent a significant investment in our local economy and will create new construction jobs as well as retain existing jobs,” Westchester County IDA Chairperson Joan McDonald added.