A New York City-based nonprofit recently closed on a construction deal to create affordable housing on the Lower East Side.
In a $9.6 million construction deal, LISC NYC plans to renovate and convert three buildings in the Lower East Side, where there is a lack of affordable housing options. The loan was secured by Asian Americans for Equality (AAFE) through HPD’s Affordable Neighborhood Coop Program for a $20 million project that will result in the creation of 44 new affordable units. The Nonprofit Finance Fund is also participating with LISC NYC in extending the construction loan, with HPD providing $9 million in subsidy for the project.
“We’re excited to provide the financing necessary for the development of dozens of affordable housing units for families in the Lower East Side,” said Valerie White, executive director of LISC NYC. “The COVID-19 pandemic has forced financial devastation upon our city’s most marginalized communities and populations, and we’re proud to help make this important investment possible.”
After the construction is complete, the unoccupied units will be offered through the NYC Housing Connect 2.0 Lottery at 95% of Area Median Income.
AAFE has previously worked with HPD’s Affordable Neighborhood Cooperative Program, converting 19 units to affordable housing at 244-246 Elizabeth Street in 2018. Over the past 40 years, the organization has evolved into a nationally recognized affordable housing developer, having developed and preserved 93 multi-family buildings, generating over 1,030 units of affordable housing through the reinvestment of more than $225 million into low-income communities.
“We’re grateful for the support provided by LISC NYC and our other partners, who are serving a pivotal role in the creation of new affordable housing options for families who need it the most,” said Thomas Yu, co-executive director of AAFE. “We look forward to our continued partnership with LISC NYC as we continue to do everything possible to help New York City’s low-income communities recover from the economic and social distress of the past 16 months.”