May 9, 2023
Governor Hochul
Governor Kathy Hochul today announced that development of two interconnected, mixed-income, mixed-use residential buildings with nearly 700 apartments, including 281 affordable units, is underway in the Inwood neighborhood of Upper Manhattan. The $416 million Inwood development will feature all-electric heating and cooling and other sustainable features that advance the State’s climate goals and offer free broadband internet to residents.
“My administration is fighting to ensure every New Yorker has the opportunity to live in a safe, secure, sustainable home in a thriving community like Inwood,” Governor Hochul said. “This development will not only create new homes but will also provide essential services and amenities that increase quality of life and boost the economy for the entire community.”
The development announced today is part of Governor Hochul’s $25 billion comprehensive Housing Plan that will create or preserve 100,000 affordable homes across New York, including 10,000 with supportive services for vulnerable populations, plus the electrification of an additional 50,000 homes.
Together, the buildings at 405 and 407 West 206th Street will have a mix of studio, one-, two-, and three-bedroom apartments. Forty percent of the apartments are reserved for residents earning at or below 80 percent of the Area Median Income. An additional ten percent of apartments will have rents restricted up to 30 percent of 120 percent of AMI and be subject to NYC Rent Stabilization Guidelines. The remaining units will be market rate apartments.
The project is pursuing a LEED BD+C Silver certification and meets the new sustainability standards established by New York State Homes and Community Renewal in 2022 which promote healthier living environments and highly efficient buildings, and support the goals set by the New York State Climate Leadership and Community Protection Act. In addition to advancing the State’s climate goals, 405 and 407 West 206th Street will offer free broadband, building on the Governor’s ConnectALL initiative, which has made historic investments to deliver high–speed internet in underserved communities and close the digital divide for lower-income New Yorkers.
Shared amenities for all residents will include landscaped courtyards, an attended lobby, multiple roof decks, a fitness center, co-working spaces, lounge spaces and music rehearsal rooms. The complex will house a supermarket under the city of New York’s Food Retail Expansion to Support Health Program (FRESH) program, neighborhood retail space, parking, and an immigrant-centered performing arts center to be owned and operated by the People’s Theatre Project.
Financing for the affordable portion of the new development includes nearly $70 million in Low Income Housing Tax Credit equity and nearly $82 million in tax-exempt bonds and almost $182 million in taxable bonds provided by New York State Homes and Community Renewal. In addition, the project applicant is applying for an estimated $39.5 million in tax credits following work completed to investigate and clean up contamination under Department of Environmental Conservation (DEC) oversight as part of the state’s successful Brownfield Cleanup Program (BCP).
The bonds were purchased by Wells Fargo Municipal Capital Strategies and Wells Fargo Bank. Credit enhancement will be provided by Fannie Mae at conversion. The Low-Income Housing Tax Credits were purchased by the Urban Investment Group within Goldman Sachs Asset Management. Additional sources include nearly $87 million equity from the joint venture and the Urban Investment Group.
The development is a joint venture among LMXD affiliate of L+M Development Partners, MSquared and Taconic Partners. The Community League of the Heights (CLOTH) is the community sponsor. The buildings were designed by Beyer Blinder Belle Architects
New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “HCR is proud to help increase the supply of quality, sustainable housing in this diverse and culturally rich neighborhood, while promoting economic opportunity and keeping Inwood an affordable, attractive place to live. With nearly 700 apartments, including 281 that are affordable to a variety of income levels, community resources and conveniences, and easy access to all the city has to offer, Inwood will be an enormous benefit to the community and serve this neighborhood for generations. It is deeply gratifying to work with dedicated partners including LMXD, MSquared, Taconic, and CLOTH and I look forward to seeing this project become reality.”
New York State Department of Environmental Conservation Commissioner Basil Seggos said, “New York’s Brownfield Cleanup Program remains a powerful tool for transforming former industrial properties to support local revitalization efforts, eliminate environmental pollution, and improve quality of life for New Yorkers, especially those in underserved communities. The Inwood redevelopment project features the latest in sustainable energy technology to reduce carbon emissions, critical to achieving the objectives of New York’s Climate Plan. Under Governor Hochul’s leadership and in partnership with fellow state agencies, DEC is proud to support the construction of affordable housing and remains committed to ensuring the program continues to succeed in communities across the state.”
Senator Kirsten Gillibrand said, “Affordable housing has become increasingly harder to find and this development will provide access to housing options that every New Yorker deserves. I am proud to support Governor Hochul’s commitment to developing and preserving much-needed affordable housing options for all New Yorkers.”
Manhattan Borough President Mark Levine said, “This project hits at Manhattan’s core needs: more housing, more affordable housing, and more sustainable housing. By addressing two of our borough’s most pressing crises – housing and sustainability – this development is building a better future for Inwood and Manhattan.”
Katherine Kelman, Managing Director, LMXD said, “Today’s groundbreaking signifies our commitment to delivering beautiful and environmentally sustainable mixed-income homes and communities. We’re thrilled to be collaborating with the State on a mixed-income development that supplements the Mandatory Inclusionary Housing program and delivers affordable homes to Inwood residents at a variety of income levels. This housing, combined with the neighborhood retail and performing arts space this development will deliver, reflects LMXD’s commitment to supporting projects that enhance quality of life in communities. We are grateful for Governor Hochul’s commitment towards creating more homes for New Yorkers and thank all of our partners for making this project possible.”
Alicia Glen, Founder and Managing Principal, MSquared said, “Inwood falls right in line with our approach of building inclusive developments that deliver much-needed housing and community resources while prioritizing the needs of the neighborhood. Transformative change starts with investing in our local communities and this project is a perfect example of how the private and public sector can come together to create more homes that are affordable, sustainable and offer all residents the same opportunities. We are proud to be a partner on this project alongside LMXD and Taconic and thank Governor Hochul for her leadership on this front.”
George Tsapelas, Senior Vice President, Taconic Partners said, “Mixed-use, energy-efficient developments like 405-407 206th Street are critical for addressing our city’s housing needs and help ensure that our communities are built to thrive. With the addition of nearly 700 homes, vital community resources and cultural amenities, all built with an eye towards sustainable design, residents will have a high-quality, accessible place to call home. Thank you to our partners and Governor Hochul for supporting this impactful project.”
Sherry Wang, Managing Director and Co-head of the Urban Investment Group within Goldman Sachs Asset Management said, “Since 2001, the Urban Investment Group has invested over $17 billion in holistic economic development. We are grateful to work with this community to create new homes that are both affordable, environmentally sustainable, and offer important resident services. Research suggests that low-income families will be disproportionately impacted by greenhouse gas emissions and we’re proud to be part of the solution.”
Yvonne Stennett, Executive Director of The Community League of the Heights said, “We are proud to be involved in the 405-407 West 206th Street project, which will deliver 281 affordable homes. In addition to the affordable housing production, we provide connections to the community for local hiring on the project and look forward to publicizing and providing education around the affordable lottery process. We will continue to work closely with the project team of LMXD, Taconic and MSquared as they move forward with this project and other community organizations to ensure that it serves the needs of the Inwood community. Our heartfelt congratulations also to People’s Theatre and the creation of the Performing Arts Center.”
Page Travelstead, Managing Director at Wells Fargo said, “The Inwood project embodies the vision of the revitalization of upper Manhattan- a place with affordable homes, community-oriented retail, and space for work and recreation. Now more than ever, our goal is to prioritize investments that expand housing opportunities and projects that help to build a better, more sustainable city for all New Yorkers. With many key partners, Wells Fargo is proud to have financed the creation of these two buildings, encompassing 698 units of mixed affordable and market rate housing, which will help to provide a critical connection to the economic and cultural opportunities that will make up this vibrant, mixed-use community in Inwood. We at Wells Fargo would like to congratulate LMXD, Taconic Development and M2 for this momentous achievement.”
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