
On Seventh Street, we have the following discarded items: two Bush books and several boxes of fortune cookies. Photo by Derek Berg.
To facilitate the proposed development, the applicant team requested approval for the disposition of the City-owned lots and designation and approval of the lots as an Urban Development Action Area Project. The application was brought by the Department of Housing Preservation and Development (HPD), along with the selected developer for the project, Juan Barahona of SMJ Development.
The project was proposed as an Affordable Neighborhood Cooperative Program (ANCP) project. ANCP is an HPD program where developers are selected to rehabilitate distressed City-owned properties managed by the Tenant Interim Lease Program, in order to create affordable cooperatives for low- and moderate-income households. Under the program, developers receive low interest loans in the form of City Capital subsidy, in addition to construction and permanent financing sources provided by private institutional lenders and New York State Affordable Housing Corporation programs.
As an Affordable Neighborhood Cooperative Program project, following the construction loan closing, the 204 Avenue A building will be conveyed to a Housing Development Fund Corporation cooperative with unit purchase requirements, income restrictions, and resale requirements. The projected maintenance for the cooperative is expected at 40 percent AMI.
In addition, although the entire building will be affordable, two of the units are going to be permanently affordable as required by the Inclusionary Housing Designated Area bonus, which gives an applicant a higher residential Floor Area Ratio in return for 20 percent of residential units being designated as permanently affordable.