The Real Deal New York

New Greenpoint Landing deal has no further sweeteners for developers: city

L+M, Park Tower getting half the projected per-unit subsidy
By Rey Mashayekhi | July 07, 2015 05:10PM

The city’s new agreement with L+M Development and Park Tower Group to halve the affordable housing subsidy on the Greenpoint Landing project included no future considerations for the developers, administration sources told The Real Deal.

L+M and Park Tower division Greenpoint Landing Associates broke ground last month on the third of the Brooklyn housing development’s first three wholly affordable buildings. The 10-building, 22-acre development, located on the Greenpoint waterfront, will house 5,500 new apartments upon completion, 1,400 of which will be affordable.

As part of the groundbreaking, the city announced that it worked with the developers to reduce Greenpoint Landing’s projected per-unit subsidy by more than half, to $65,000 per unit from $136,000 previously.

Alicia Glen, deputy mayor for housing and economic development, described the agreement as “a sign of [the city’s] commitment to getting the most affordable housing for our dollars.”

The deal included no future considerations for the developers, administration sources told TRD, and is another example of the de Blasio administration’s efforts to tweak deals that were agreed upon during previous administrations and try to squeeze out more affordable housing.

The city reached a deal with Forest City Ratner last year on the developer’s Pacific Park project – formerly known as Atlantic Yards – in Downtown Brooklyn, providing a cash subsidy totaling $23.5 million in exchange for 600 affordable units at two buildings, according to the New York Times.

Glen described the Pacific Park agreement as an improvement on terms previously agreed under the Bloomberg administration, which had provided $11.6 million for 182 affordable units at another of the project’s buildings.

The de Blasio administration also pushed Two Trees Development to include more affordable units at the Domino Sugar Factory site in Williamsburg, in exchange for a zoning change at the site.

The city also reached a deal with Related Cos. to devote an entire building at the developer’s Hudson Yards project to affordable housing.

A Greenpoint Landing spokesperson told TRD the company is “pleased to be providing affordable housing for the Greenpoint community and to work with the City to reach the Mayor’s goals.”