The first phase of a nearly 2,000-unit affordable housing community in East New York is closer to realization with a sizable loan.
The development team of the Gotham Organization, Monadnock Development and nonprofit Christian Cultural Center scored $270 million in construction financing for their project at 12020 Flatlands Avenue in the Brooklyn neighborhood, the Commercial Observer reported. The loan will fund the construction of 386 multifamily units at the Christian Cultural Center site.
The New York State Housing Finance Agency provided $170 million through tax-exempt bonds, while the New York City Department of Housing Preservation and Development provided $47.1 million in third-mortgage subsidiary funding. Goldman Sachs’ Urban Investment Group is also providing $143 million in low-income tax credits.
The 386-unit building will consist entirely of affordable housing units, all reserved for those earning 80 percent or less of the area median income. The property will also have 17,000 square feet of retail space.
The building will take roughly two years to complete. The complex is expected to open in 2026.
The building is the first phase of the larger Innovative Urban Village, one of the most critical affordable housing developments in the neighborhood in recent memory. The planned community will include 1,975 affordable housing units, a performing arts center, a grocery store, local retail and open park space.
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Originally anticipated for around 2,100 units, the community has been in the works for more than half a decade. It’s expected to take at least a decade for it to be completed.
East New York was subjected to a controversial rezoning in 2016. Many of the homes slated for the neighborhood haven’t come to fruition yet; as of last March, only 1,661 affordable units had been started in the rezoned area and only a few hundred were occupied. Transit improvements, however, could still lead to the rezoning meeting its potential.