First EDLF recipient to construct a ground-up, 100% affordable residential development in the Bronx; Includes housing exclusively for formerly homeless veterans and low-income New Yorkers
BRONX, NY—New York City Economic Development Corporation (NYCEDC) announced the first recipient to receive a low-interest loan through the Emerging Developer Loan Fund (EDLF). The project, 1193 Fulton Avenue Residence LLC, will be a nearly 21,000 square foot, 100% affordable, 25-unit residential building in the Morrisania section of the Bronx.
The project will include:
- 8 units exclusively for formerly homeless veterans (VASH)
- 12 units for low-income occupants (60% AMI)
- 4 units for moderate-income occupants (80% AMI)
- 1 unit for a live-in superintendent
- Shared, on-site laundry facilities
- 6 parking spaces
The project is a joint venture between Apex Building Group and Silver Wave Equities, both of whom are MWBEs and have extensive construction experience. The first EDLF loan of $1,020,000 has a 12-month term and supported land acquisition and pre-development costs for the developers.
“The Emerging Developer Loan Fund supports promising developers, many of whom are MWBEs, by reducing barriers that often prevent them from accessing the capital they need,” said NYCEDC President and CEO James Patchett. “We’re proud that the first loan allocation will spur the development of 100% affordable housing in the Bronx, including residences for formerly homeless veterans. We look forward to the wave of projects the fund will support and the benefits they will bring to surrounding communities.”
“The selfless service and enduring sacrifice of our veterans and their families have long defined and protected our nation, and now it’s our turn to safeguard their well-being at home. That’s why this Administration is committed to honoring their service by devoting resources that improve their quality of life, including providing much-needed affordable housing and health services. The first Emerging Developer Loan project will deliver several units of veterans housing exclusively and will further the Administration’s efforts to end veteran homelessness,” said Loree Sutton, MD, Brigadier General (retired), Commissioner of the Mayor’s Office of Veterans’ Affairs (MOVA).
“When Emerging Developers are provided access to capital, the door of opportunity opens,” says Tammy Jones, President of Basis Management Group. “1193 Fulton represents one such opportunity and demonstrates the power of this program to create change, one deal at a time.”
“We at Apex are very excited to bring this project to fruition and help ease the burden of housing for some of New York's most vulnerable populations. We appreciate programs such as the emerging developers Loan Fund to support up-and-coming Developers to contribute to maintaining the diverse and dynamic fabric of the City's neighborhoods,” said the Apex Building Group, lead sponsor of the project.
“The Emerging Developers Loan Fund is an innovative effort to support small and local developers, and MWBE developers in particular,” said Council Member Vanessa Gibson. “I am proud that the Fund's first project supports two MWBE firms working together to build a 100% affordable residential building in the Morrisania neighborhood in my community. I thank the New York City Economic Development Corporation for their creativity and leadership in supporting MWBE entrepreneurs who serve our community.”
Announced in August 2016, the Emerging Developer Loan Fund provides low-interest loans that range from $100,000 to $2.5M to emerging developers to cover pre-development and land acquisition costs for mixed-use, multifamily, industrial and/or commercial projects valued at $30M or less. The fund, a partnership with Basis Management Group, LLC, also provides technical assistance to help developers craft loan packages and mentorship to foster efficiency and effective time-management so projects are completed on time.
Interested emerging developers can find more information and apply through the fund’s website.
NYCEDC has a range of programs to that aim to boost opportunities for M/W/DBE firms, such as:
- ConstructNYC - Connects small-to-mid-sized minority, women and veteran-owned as well as disadvantaged business enterprises with exclusive opportunities to work on NYCEDC Projects through contracts up to $1 million.
- Kick-Start Loan Program - NYCEDC helps M/W/DBEs that work as either Prime or Subcontractors on our projects to obtain loan capital that can strengthen their financial position, enabling them to cover upfront project costs or enhance cash flow streams during the life of the project.
The EDLF will help close the inequality gap and help further the de Blasio Administration’s goal to support diverse communities and boost economic growth by awarding $16 billion in contracts to MWBEs over the next ten years.
New York City Economic Development Corporation creates shared prosperity across New York City’s five boroughs by strengthening neighborhoods and creating good jobs. NYCEDC works with and for communities to provide them with the resources they need to thrive, and we invest in projects that increase sustainability, support job growth, develop talent, and spark innovation to strengthen the City’s competitive advantage. To learn more about our work and initiatives, please visit us on Facebook, Twitter, or Instagram.