Southtown 8 to bring 341 new units of affordable housing to RI
The Roosevelt Island Operating Corporation (RIOC) has executed a ground lease agreement with the developers – the Hudson Companies Inc. and the Related Companies LLP. - for Southtown Building 8 that will bring 341 units of additional affordable housing to Roosevelt Island by 2021.
At a special session convened November 20, RIOC’s Board of Directors - after reviewing the deal’s proposed structure - voted to allow RIOC President and CEO Susan Rosenthal approval to negotiate and execute a final ground lease with the Hudson Related Companies for Building 8, a planned 21-story building comprised of approximately 240,000 square feet of floor area, on the plot just south of 480 Main Street. The building will be designed by Handel Architects who also designed the Southtown 7 building.
In a negotiation during the special session, Hudson Related also agreed to construct a comfort station at the Island’s Firefighters Field and make modifications to the field up to a cost of $1 million.
Sixty percent of the units in Southtown 8 will be permanently affordable. The other 40 percent of the units will be income restricted and or affordable for at least 40 years from permanent loan conversion.
“The Southtown 8 ground lease will allow RIOC to continue honoring its mission, as laid out in the Island’s General Development Plan; to promote, develop and maintain an affordable mixed-use residential community,” here on the Island, said RIOC President Susan Rosenthal. Of the current 5,226 units already built on Roosevelt Island, 2,200 remain affordable, according to RIOC’s 2018 Performance Measure Report.
The Southtown 8 building will be financed under M2 Mixed Income programs through the Department of Housing Preservation and Development of the City of New York (HPD) and the New York City Housing Development Corporation (HDC).
Other provisions in the deal include:
- On the date of closing, December 26, 2018, the developer paid RIOC $288,000, the first annual payment of ground rent.
- At the beginning of the Rent Commencement Date, (or the end of construction), the developer’s annual ground rent will be $576,000 and increase three percent each year.
- A one-time rental payment of $16,800,000 is also due at the beginning of the rental period, but can be deferred up to 36 months at a four percent interest rate.
The apartment quantity by size in Southtown Building 8 is broken down as follows:
- 81 - studio
- 158 - 1BR
- 51 - 2 BR
- 50 - 3 BR
Depending on family and apartment size, income-level based rents (calculated based on the AMI) will vary from a minimum of $505 a month for a studio; to $3,431 for a three-bedroom.
The City requires that the new building provide a 50 percent preference for residents of Community Board 8’s jurisdiction which includes Roosevelt Island.
When marketing and leasing starts, residential applications will be submitted to a “housing lottery” via the NYC Housing Connect website which is administered by the city’s HPD.