Dealmaker: Fannie Mae Provides $26 Million LIHTC Investment Financing for Queens Development
Fannie Mae, Washington, D.C., announced a $26 million Low-Income Housing Tax Credit equity investment to facilitate construction of Far Rockaway Village, a 457-unit residential development in the Far Rockaway area of Queens, N.Y.
Fannie Mae will back the project through The Richman Group Affordable Housing Corporation, a Fannie Mae LIHTC fund partner.
The project is the first phase of the largest residential development planned in the downtown Far Rockaway neighborhood rezoning plan. Far Rockaway Village (Phase 1), will consist of two, 12-story residential high-rise buildings located at 20-02 Mott Avenue in Queens.
The development will comprise 227 LIHTC units available for residents earning between 30% and 60% of area-median-income. Remaining units will have rent affordable to households earning 70% of AMI. In addition, 46 units available at 30% of AMI will be targeted to formerly homeless people though the “Our Space” program and will be underwritten at the NYC Shelter Allowance level.
The property also will include sustainable features, such as energy-efficient measures, ENERGY-STAR appliances, a rooftop solar array, and will be certified under Enterprise Green Communities standards. Construction is expected to begin in July with an expected completion date of June 2021.
“This LIHTC investment helps us support affordable multifamily housing in one of the highest cost markets in the U.S.,” said Dana Brown, Vice President of LIHTC Investments with Fannie Mae.
The developer of the project is Phipps Houses, the oldest and largest non-profit developer of affordable housing in New York City. Phipps Houses owns more than 4,000 units of affordable housing. Other investors in the development are People’s United Bank, N.A. and Signature Bank. NYC Housing Development Corporation and NYC Department of Housing Preservation and Development are providing significant investments of Tax Exempt Bonds, allocation of the 4% Low-Income Housing Tax Credits and low cost loans.
