The Real Deal New York

Affordable housing experts slam Sugar Hill development

Price tag of $500,000 per unit comes in above the cost of comparable projects, they say
June 10, 2014 06:20PM

The recently completed Sugar Hill Apartments brings a lot to West Harlem: 124 permanently affordable housing units, a children’s museum and pre-kindergarten facilities. But some say the cost of providing those neighborhood benefits was too high.

The price tag of $500,000 per unit at Sugar Hill comes in well above the cost of construction at similar projects, anonymous affordable housing experts told Crain’s. Such homes typically run between $300,000 and $400,000, the experts said.

Some have also questioned the provision of limited federal funds known as 9 percent tax credits to developer Broadway Housing Communities. They say those funds could have gone to developments whose costs aligned with the norm, reports Crain’s.

The city said soil contamination and other development site conditions inflated costs at Sugar Hill, according to Crain’s. [Crain’s]Tom DiChristopher