Services for the UnderServed (S:US) and Bronx Pro have secured a large construction loan to complete the first phase of a two-tower affordable housing project in the Morris Heights section of the Bronx. The first phase of the development, a 14-story residential tower, is located at 1600 Grand Avenue and will include 325 units.
A total of 200 units in this first tower will be reserved for former homeless people with substance abuse disorders. S:US will be the service provider for supportive housing, with funding from the Office of Addictions Services and Supports under the Empire State Supportive Housing Initiative (ESSHI) program.
In total, the Starhill complex will include approximately 570 supportive and affordable housing apartments for formerly homeless people and households earning between 40% and 80% of the regional median income (AMI).
“At S:US, housing is at the heart of what we do,” said Dr. Jorge R. Petit, President and CEO of S:US. “Without the stability of a home, families can’t stay together, people can’t find jobs, challenges are completely overwhelmed, and life quickly spirals out of control. Helping New Yorkers secure housing is part of our social justice mission to end homelessness and ensure access to affordable, supportive housing.
The development site spans approximately two acres and is occupied by a former hospital operated by S:US. Construction at this location would not have been possible without the ratification of the Jerome Avenue Rezoning Plan, a major initiative to facilitate the construction of mixed-use, mixed-income housing along 73 blocks of Jerome Avenue in the Bronx. The plan was approved by the New York City Council in 2018 and is expected to create around 4,600 new apartments, with more than 1,000 affordable units.
The Starhill team has not announced when phase two construction is expected to begin. Located at 1600 Macombs Road, the second and final phase will feature a 222,000 square foot tower with approximately 240 supportive and affordable housing units. The ground floor will also include a 4,400 square foot community facility.
Residents will have access to a landscaped terrace with raised green space, seating, social services and a water feature, in addition to a children’s play area, laundry facilities and a fitness room. Residents will also have access to a backyard with a barbecue area and an urban farm.
The indoor complex will also include 11,500 square feet of open space accessible to the public.
“Bronx Pro Group is proud to be part of the next chapter and the reinvention of the Starhill campus in Morris Heights,” said Samantha Magistro, CEO of BPG. “Starhill Phase I honors the site’s history of medical and mental health care, while meeting the community’s current needs for affordable housing and new open space. We look forward to building this new community with S:US, our lenders, and our community stakeholders. »
Marvel Architects served as the design studio for both Starhill towers.
The total development cost for the first phase of Starhill is $190 million. The project is funded through tax-exempt bonds, low-income housing tax credits, and forgivable loans provided by the New York State Housing Finance Agency, and forgivable loans provided by the New York City Department of Housing, Preservation and Development. The additional funding includes tax credits syndicated by Enterprise Community Partners and purchased by Freddie Mac, a construction loan provided by JP Morgan Chase, and Resolution A funds.
The developers have not confirmed total development costs for the entire Starhill complex.
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