According to the U.S. Department of Housing and Urban Development Office of Multifamily Housing, [1] it has funded a $930 million Rental Assistance Demonstration (RAD) for New York City’s Housing Authority [2] (NYCHA) for its Edenwald Houses Development.
The transaction will provide major upgrades and renovations to up to 2,035 designated affordable rental homes. The development, originally built in 1953 in The Bronx, is home to about 5,000 residents and is the oldest public housing development in the city. To ensure quality housing and appropriately address the needs of the community, HUD worked closely with residents and a NYCHA partner team for over two years to thoughtfully design each aspect of the transformation of these homes for current and future generations.
Through the RAD, the homes will be converted to project-based Section8/Section 18 homes. This is the largest transaction to date under the RAD program. To ensure quality housing and appropriately address the needs of the community, HUD worked closely with residents and a NYCHA partner team for over two years to thoughtfully design each aspect of the transformation of these homes for current and future generations.
Energy efficiency is a key component of the renovation plans, which will be achieved through new energy-efficient windows, electric panels, LED lights, and resilient flooring throughout each home. The project will also include onsite amenities such as a fully renovated senior center, new laundry facilities, improved waste management, free wireless internet, outdoor green spaces, security, and the development and implementation of a social services program.
The total rehabilitation cost for Edenwald Houses is $480 million ($236,000 per home) and is fully financed through RAD using:
- Debt provided by the New York City Housing Development Corporation
- Federal and State Rehabilitation Tax Credits
- New York City Housing Preservation and Development funding
- Developer equity contributions