FOR IMMEDIATE RELEASE: Tuesday, August 25, 2020
Catholic Charities Progress of Peoples Development Corporation Begins Construction forNew Affordable Senior Housing
New $62 Million Catholic Charities Bishop Valero Residence to Provide 102 Units with Supportive Services in Astoria
Queens, NY – Catholic Charities Progress of Peoples Development Corporation (Catholic Charities), the affordable housing affiliate of Catholic Charities Brooklyn and Queens, Inc., began construction in June on the new Bishop Valero Residence, a $62 million development to provide 102 units of affordable apartments for low-income seniors and formerly homeless adults with supportive services in Astoria, Queens. The project will be built on the former parking lot of the current Catholic Charities Catherine Sheridan Senior Housing, which is located directly across the street on 31st Road in the Astoria community of Queens.
The Bishop Valero Residence is financed with a $3.1 million annual allocation of 9 percent Low-Income Housing Tax Credits (LIHTC) from the New York City Department of Housing Preservation and Development (HPD), which leverages $30.8 million in tax credit equity over 15 years. Bank of America will provide construction lending, Richman Housing Resources will syndicate tax credits, and Barings will provide permanent debt for the project over the next 30 years.
“We are pleased to begin the construction of the Bishop Valero Residence,” said Monsignor Alfred LoPinto, Chief Executive Officer, Catholic Charities Brooklyn and Queens.“ Affordable housing is one of the biggest crises facing New York City. As one of the largest faith-based developers of affordable housing in the country, we understand how true this statement is. This project will provide much needed housing to low-income seniors and supportive environment for formerly homeless, and allow the residents to live safely, comfortably and independently for as long as possible. There are thousands of individuals in need of affordable housing in New York City, and we cannot build fast enough.”
“More than ever, western Queens is in need of quality senior affordable housing,” said Costa Constantinides, Council Member, District 22. “We lead the City in seniors awaiting appropriate housing that matches their financial means. They deserve to remain in the neighborhoods where they built a family and retired with dignity. I was proud to work closely with Catholic Charities to ensure we got the maximum amount of affordability on this site that replaced an underutilized parking lot. Thank you to Catholic Charities for their partnership and leadership on the Bishop Valero Residence.”
“We are advancing the projects that best meet the urgency of the moment by serving the most vulnerable New Yorkers,” said HPD Commissioner Louis Carroll. “Projects like the Bishop Valero Residence that will bring affordable homes to seniors, homeless seniors and provide services to the city’s most at-risk adults, will help New York City emerge from the crisis stronger.”
“We would like to thank and acknowledge the hard work of our wonderful development partner, Catholic Charities Progress of Peoples Development Corporation for its commitment to creating 102 new apartment units for low-income seniors, including 31 units of housing for formerly homeless seniors,”
said Kevin Hoffman, President of Richman Housing Resources LLC.“Bishop Valero Residence is a great example of how public-private partnerships, using federal low-income housing tax credit programs and HUD rental subsidy vouchers, can create affordable housing for low-income seniors and the formerly homeless. We would also like to thank NYC Housing Preservation & Development and our investment partner, Bank of America for thinking creatively to close this important housing project while overcoming the challenges presented by COVID-19. Richman is honored to be working with CCPOP, a long-standing New York City non-profit dedicated to transforming communities and providing housing opportunities for those who need it the most.”
“Bank of America Community Development Banking is pleased to help create much-needed affordable housing for seniors and formerly homeless veterans in Astoria,” said Erin Galligan, Senior Vice President of Community Development Banking at Bank of America.“Bishop Valero Residence is a great example of the impact we can make to help the most vulnerable in our communities and our continued commitment to support the communities where we work and live.”
“Barings is proud and honored to partner with Catholic Charities on this vitally needed affordable housing project in New York City” said Daron Tubian, Head of Affordable Housing Investments at Barings.“Our 30-year loan commitment for permanent financing for this project underscores our focus on being reliable, long-term partners, even during times of significant economic uncertainty.”
Closing for the Bishop Valero Residence was initially scheduled in March 2020, but when the pandemic hit, the deal was thrown in flux, along with nearly all aspects of New York City life. However, emphasizing the specific need for a project such as Bishop Valero Apartments, and utilizing the expertise of a strong financial and legal team, the deal was able to move forward.
Nixon Peabody LLP’s team that advised Catholic Charities Progress of Peoples Development Corporation was led by Joe Lynch and included attorneys Matthew Carrigg and Darren Miller. “The Bishop Valero Residence will provide significant relief to two of the coronavirus’ hardest hit populations in New York City,” said Joe Lynch, partner and leader of Nixon Peabody’s Affordable Housing Transaction Team. “Through creative thinking and perseverance with our client, working every angle with the city, we made it work. I’m extremely proud of this deal.”
Located at 23-11 31st Road in Astoria, Queens, the Catholic Charities Bishop Valero Residence will be a six-story, 84,900 square foot building with on-site supportive social services for residents featuring a 6,400 square foot, 200-seat capacity community senior center on the ground floor of the building provided and operated by Catholic Charities Neighborhood Services, an affiliate agency of Catholic Charities Brooklyn and Queens. With 102 residential units and one superintendent’s unit, the building will be a 100 percent affordable residence for seniors with 30 percent of the building reserved for formerly homeless seniors with severe mental illness (SMI) through the New York City 15/15 Supportive Housing Initiative sponsored by the Department of Homeless Services in the Human Resources Administration. The remainder of the units reserved for low-income seniors will target those making up to 60 percent of the Area Median Income (AMI). 100 percent of resident units are supported with rental operating subsidy through the HUD Section 8 Project-Based Voucher program, as administered by the New York City Housing Authority. The programming for the Peter J. Dellamonica Senior Center, which Catholic Charities currently operates in the Astoria community will relocate to the Bishop Valero Residence, will include daily hot meals made on-site, educational forums, fitness classes, and senior case management and referral services. In sum, the Bishop Valero Residence will provide much needed affordable senior housing and services for NYC residents to live safely, comfortably, and independently in the vibrant community of Astoria.
In 2016, Catholic Charities joined a coalition with LiveOn NY that heavily advocated for changes to the New York City zoning resolution. Approved by the New York City Council, the changes, called Zoning for Quality and Affordability (ZQA), included allowing buildings with affordable or senior housing to be taller, eliminating parking requirements for affordable or affordable senior housing located near subway lines, and changing rules which affect the shape of new and enlarged buildings. This new ZQA regulation allows Catholic Charities to build crucial affordable housing units on underutilized parking lots within the existing Catholic Charities’ housing portfolio.
The Catholic Charities Bishop Valero Residence Development Team consists of Dattner Architects; Monadnock Construction, Inc., General Contractor; KOW / ARMA Consultants, Owner’s Representative; Bright Power, Inc., Sustainability Consultant; and A. Larovere Consulting, Development Consultant.
The Catholic Charities Catherine Sheridan Apartments was built in 1978 and currently has 240 apartments for low-income seniors.
About Catholic Charities Progress of Peoples (CCPOP) Development Corporation
Since 1975, Catholic Charities Progress of Peoples Development Corporation, the affordable housing developer of Catholic Charities Brooklyn and Queens, Inc. and has been transforming vacant land and buildings into affordable housing units and transforming the lives of individuals and families. In the past 44 years, Catholic Charities Progress of Peoples Development Corporation has completed more than 4,330 units with supportive services for seniors, families, the formerly homeless, those with HIV and those struggling with mental illness. Family and senior housing buildings are a priority, and Catholic Charities remains committed to creating homes throughout Brooklyn and Queens. For 120 years, Catholic Charities Brooklyn and Queens, Inc. has been providing quality social services to the neighborhoods of Brooklyn and Queens, and currently offers 160-plus programs and services for children, youth, adults, older adults, and those struggling with mental illness.
About New York City Housing Preservation Development (HPD)
The New York City Department of Housing Preservation and Development (HPD) is the nation’s largest municipal housing preservation and development agency. Its mission is to promote quality housing and diverse, thriving neighborhoods for New Yorkers through loan and development programs for new affordable housing, preservation of the affordability of the existing housing stock, enforcement of housing quality standards, and educational programs for tenants and building owners. For full details, visit www.nyc.gov/hpd, and for regular updates on HPD news and services, connect with us on Facebook, Twitter, and Instagram @NYCHousing.
About Richman Housing
Over the last five years, The Richman Group and its affiliates has been the nation’s premier sponsor of affordable housing tax credit funds. To date, the organization has structured and sponsored real estate investment funds that have surpassed 1,600 properties acquired. Our properties are located in forty- nine states, Washington, D.C., Puerto Rico, Guam, Saipan and the U.S. Virgin Islands. Through public and private offerings, the firm has raised $13 billion of equity dollars that have been invested in real estate transactions having a property cost of nearly $25 billion.
About Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers, including approximately 3,000 lending centers, 2,700 financial centers with a Consumer Investment Financial Solutions Advisor and approximately 2,100 business centers; approximately 16,900 ATMs; and award-winning digital banking with approximately 39 million active users, including approximately 30 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Barings is a $327+ billion global financial services firm dedicated to meeting the evolving investment and capital needs of our clients and customers. Through active asset management and direct origination, we provide innovative solutions and access to differentiated opportunities across public and private capital markets. A subsidiary of MassMutual, Barings maintains a strong global presence with business and investment professionals located across North America, Europe and Asia Pacific.
About Nixon Peabody
At Nixon Peabody, we see 21st century law as a tool to help shape our clients’ futures. We are constantly thinking about what is important to our clients now and next so we can foresee obstacles and opportunities in their space and smooth the way. We ensure they are equipped with winning legal strategies as they navigate the exciting and challenging times we live in. We work together to handle complex challenges in litigation, real estate, corporate law, intellectual property, and finance anywhere in the world.