Common Ground closes on financing for Chelsea project

Real Estate Weekly, June 5, 2002

Common Ground Community closed on financing provided by the New York City Department of Housing Preservation and Development for the rehabilitation of The Chelsea Residence, located at 206 West 24th St. in Manhattan. Formerly known as the residential annex of the McBurney YMCA, Common Ground acquired the building in October 2000 for the development of 207 units of affordable supportive housing. The Chelsea Residence will also house Common Ground's "Foyer Program" - a residential career development program for young people at risk of homelessness.

Total development costs of The Chelsea Residence are $32 million, including $9 million for acquisition: In addition to the New York City Department of Housing Preservation and Development, The New York State Homeless Housing Assistance Corporation, The Office of City Council Member Christine Quinn, and the Office of State Assembly Member Richard N. Gottfried are also providing project financing for The Chelsea Residence.

Astoria Federal Savings is contributing a $1 million grant to the project under the auspices of the Federal Home Loan Bank of New York's Affordable Housing Program. "The Home Loan Bank of New York, in partnership with Astoria Federal Savings and Loan Association, is de-' lighted to assist Common Ground Community begin the important task of renovating The Chelsea Residence, " said Alfred A. DelliBovi, president and CEO of The Home Loan Bank. "At the end of the day, this community partnership will not only help produce a stronger city but give 207 people a decent and safe place to call home."

"This development partnership is grounded in our philosophy of 'Putting people first,' and I am pleased that we could serve as the conduit for Common Ground to acquire the funding," George L. Engelke, Jr., Astoria Federal Savings' Chairman, President and Chief Executive Officer said. "We are deeply committed to helping low- and moderate-income individuals and families improve their quality of life. In particular, we appreciate the opportunity to support the Foyer Program, which provides structured and supportive housing to help young adults begin their path towards self-sufficiency."

Additional capital will be raised through the Low Income Housing Tax Credit Program, an application for which is pending with the New York State Division of Housing and Community Renewal. Predevelopment support was provided by Booth Ferris Foundation, Butler Family Fund, The Dime Savings Bank of New York, JP Morgan Chase Foundation, Newman's Own, Sirus Fund, Rhodebeck Charitable Trust and Viacom. Manhattan Community Board Four has provided significant support to the project.

HPD has been instrumental not only in the development of The Chelsea Residence, Common Ground's third affordable supportive housing residence, but also in the development of The Times Square and The Prince George. Common Ground was able to acquire and renovate all three buildings with major funding coming from HPD's Supportive Housing Loan Program, which provides financing to qualified not-for-profit organizations to develop permanent supportive housing for homeless single adults, including people suffering from disabilities such as mental illness and AIDS.

Through these three residences, Common Ground provides over 1,200 units of affordable housing to low-income and formerly homeless single adults.