This week I went to a presentation given by the managing director of development and head of the smart growth investment fund at the Jonathan Rose Companies. As I advance in my career, this online pharmacy without prescription is the company I want to emulate. The Jonathan Rose Companies is dedicated is a leader of providing green urban housing that serves as a replicable model.
The presentation focused on their rehabilitation project at 135th street in the Harlem section of New York City. The project has become a model for green retrofits of affordable housing. The presentation is embedded below. There’s so many aspects of the project I could cover, but I wanted to look specifically at how the project was funded. When doing affordable housing there is an extremely slim margin and all funding sources are critical. Add green features on top of that and utilizing all sources of public funding becomes even more imperative.
Believe it or not, this is a relatively simple capital structure for a green affordable housing project. A few things to highlight:
- This was the first project to utilize the HUD green retrofit program
- The project utilized the NYSERDA Solar Program to partly finance the installation of the photovoltaic panels they installed on the roof
- They also got a Federal Solar Tax Credit Grant which made the PV solar panels feasible, it provides a 30% grant for the total expenditures
- Most of the project costs came from an HDC first mortgage using both a long and short-term bond through HDC’s LAMP Program
- The equity for the project came from HUD’s Low-Income Housing Tax Credits (LIHTC)
The financial structure of affordable housing projects are typically very complicated. An understanding of how City, State, and Federal agencies operate is critical as the public sector is becoming increasingly important in the development process.
Here is the entire presentation:
Jonathan Rose Companies Presentation
What sources of financing are used in affordable housing projects in other cities?
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